Alaska Airlines, a subsidiary of Alaska Air Group (NYSE:ALK), received positive news on the labor front as its aircraft maintenance technicians, maintenance controllers, and supporting staff, represented by the Aircraft Mechanics Fraternal Association (AMFA), endorsed a new five-year contract.
After a year of negotiations, the agreement brings about increased pay, improved retirement contributions, and enhancements to quality of life. CEO Ben Minicucci praised the airline’s expertise and dedication, highlighting the swift approval just four months after the previous contract’s amendable date. This marks the seventh ratified contract across six represented groups since 2022, demonstrating Alaska Air’s dedication to its workforce.
AMFA’s national president, Bret Oestreich, hailed the agreement for its fair compensation and job security provisions, acknowledging the negotiating committee’s efforts in securing essential protections. Effective on October 17, 2023, the contract encompasses wage increases, schedule improvements, retirement benefits, and language adjustments aimed at boosting productivity. With this significant agreement, Alaska Airlines aims to attract and retain top talent, solidifying its position for long-term success in the aviation sector.
It’s worth noting that contracts in the airline industry do not expire; once they reach the amendable stage, the current contract remains in effect until a new agreement is ratified. With U.S. airlines facing labor shortages amid buoyant air travel demand rebounding strongly from pandemic lows, labor groups have gained increased bargaining power, leading to a flurry of recent labor agreements in the airline industry.
In August 2023, American Airlines (NASDAQ:AAL) pilots, represented by the Allied Pilots Association, approved a four-year deal involving wage increases. This move enabled AAL’s pilots to receive an immediate average pay raise exceeding 21%, along with provisions to enhance their quality of life.
Similarly, in September 2023, United Airlines (NASDAQ:UAL) pilot union ratified a $10 billion contract, resulting in pay increases of up to 40.2% over the contract’s four-year duration.
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