United Airlines has come to an agreement with its flight attendant union on a new contract, that would give cabin crew their first raise in 5.5 years. This comes after flight attendants rejected an agreement last summer.
I fully expect this agreement to pass. Flight attendants have seen their wages eroded by inflation. They’re tired of working for less than peers at other airlines. And their union represented them poorly – first taking too long on the first contract by choosing to have American Airlines negotiate a deal first, while losing leverage at the National Mediation Board (since Trump became President, and with that the credibility of strike threats diminishing) and second by misreading member priorities in how the spoils would be divided hence 71% of flight attendants rejected the first deal negotiated by their union.
One claim that the union made during that first round of voting turned out to be correct, though. They had gotten all of the value that was on the table from United. So what was left was rearranging dollars. That means that this new agreement contains a lot of tradeoffs.
The contract gives back on its scope provisions. United Airlines will be permitted to own a regional carrier, without staffing it with union members. That doesn’t mean more regional flying. They’re still protected by limits negotiated in the pilot contract, so this is likely fine, but it’s a real benefit to United in exchange for benefits like better layover hotel language and limits on redeye work assignments.
United’s flight attendants haven’t won profit sharing that matches Delta’s non-union crew, or the same formula (albeit with lower profits to share) that American Airlines flight attendants won. And they’ve given back quite a bit of retro pay in this new deal. The delay in getting to this next agreement is costing flight attendants real money.
- Last summer’s rejected contract had the following retro pay formula: 4% for September – December 2021; 4% for 2022, 4% for 2023, 14% for 2024, and 25% for January – July 2025.
- The new tentative agreement formula is: 4% for September – December 2021; 4% for 2022; 4% for 2023; 4% for 2024, 22% for 2025, and 25% for January – May 2026.
2024 alone lost 10% of pay. That means a flight attendant who earned $60,000 in 2024 gave back $6,000 in this new agreement. Retro pay also has a lower 2025 formula.
Rejecting the original contract meant 10 months more of pay at a lower rate. And that’s why the total amount of retro pay in this contract goes up – it’s just savings that United was accruing (and earning an investment return on) in the interim. And this agreement doesn’t fully capture that loss to flight attendants.
- Under the original rejected contract, 2025 would have had 25% retro pay for January – July, plus a ~ 26.9% wage increase for August – December. That combines to about 25.8% of 2025 earnings.
- This new agreement accounts for that with retro pay totaling just 22%.
Boarding pay was lost during the delay period as well, and isn’t made up for in this new deal.
The rejected contract added about 7.3% of pay on average for boarding starting with the December 2025 bid period. This new agreement would go into effect on May 31, 2026. That’s several months of losses of boarding pay, not made up for in retro pay.
Work rules are improved in this new agreement, but that’s partially paid for by the year of foregone higher wages and delayed boarding pay. This new agreement contains real economic givebacks compared to last summer’s rejected contract, in exchange for the improvements it offers.
It’s still a good deal, bringing United flight attendants up to industry standard wages. It’s not as good as the company and union will present. Top-line wage rates start off highest in the industry, but that’s paid for by past savings and lower profit sharing. It doesn’t necessarily make United flight attendants the best paid – but it addresses the erosion in wages that they suffered through inflation.
United, for its part, banks its savings from years of delay. Inflation was ~ 7% in 2021 and 8% in 2022, but retro pay for the back end of 2021 and for 2022 is just 4%, not compounding. Overall it’s been a tough several years for employees, and the new deal doesn’t actually make up for this.
Meanwhile the increase in base pay is roughly equal to inflation since the contract’s amendable date five years ago. Actually raises come through boarding pay (which Delta added in 2022) and sit pay for long layovers, which is airline now has an incentive to avoid.
UNITED RISING
All very true.
UA won by the union’s belief they would get a better deal. The union horribly miscalculated.
and DL just announced that its first quarter profit sharing increased despite higher fuel prices.
Even when flight attendants get a better deal, Gary (and others) can’t help but punch-down. Fellas, if you really loathe the workers, please, do explicitly tell them how you feel, ideally, before meal and beverage service. Like, tell them, “I think you deserve less.” You don’t even have to be rude. Tim, explain how this hurts your investments or whatever. Remind them how late-stage capitalism is good (for you, but, obviously, like, not necessarily, everyone, yeah…)
“It’s still a good deal, bringing United flight attendants up to industry standard wages.”
And yet… the sky is falling. Ahhhhh!!!! (Pick a lane, Gary.)
It is good.to get their pay up. It is not the historic deal/win that their union and the airline would have them believe.
@Geff Leff — Oh, I get it, but it’s still progress, and perfect should not be the enemy of good here.
They should take the deal and move forward. Union leadership really did a poor job for the members not to have gotten a contract years ago, but delaying the contract further will not improve their position in the next negotiations.