New Contract for United Airlines Flight Attendants

New Contract for United Airlines Flight Attendants

United Airlines has unveiled a new contract that will significantly boost salaries for its flight attendants. I took the time to dive into the 425-page contract to get a clear understanding of its terms and some of the details that may have been overlooked. Comparing contracts across airlines isn't straightforward, especially since each airline has unique regulations that can impact the working conditions of flight attendants.

This contract doesn't just focus on salary; it also includes provisions regarding hotel selection during layovers and rest periods for flight attendants after night flights. In simpler terms, the base salary at United is set to become the highest in the airline industry under this new agreement. This is undoubtedly the maximum amount they can achieve, especially since the flight attendants' union reported that a previous agreement was rejected because it didn’t meet the expectations of 71% of their members.

Other Aspects of the Contract

However, United is not necessarily more generous than other airlines in every aspect. Their profit-sharing formula is set to be lower compared to Delta and American Airlines. The United flight attendants' union had to concede to allow United the opportunity to own a regional airline without needing their official flight attendants.

It’s evident that the United flight attendants' union has a clear strategy, waiting until American Airlines completed their negotiations before pushing this agreement forward, even sending a representative to negotiate with their rival union. Was it worth waiting nearly six years without a new contract? That remains an open question.

Specific Salary Increases

If this contract is ratified, salaries are expected to increase by around 30%. Additionally, there will be compensation for boarding time—half of the salary during this time—and a signing bonus of up to $740 million, which is meant to make up for the prolonged period without pay raises. Delta began compensating for boarding time in 2022, putting pressure on other airlines with unionized flight attendants.

The United flight attendants' union claims there will be an increase of about $145 million in retroactive pay, but in reality, this isn’t a true improvement in the contract. They have been without a contract for nearly a year, so this is simply United not withholding that money as savings. However, it’s not “full retro pay.” This formula does not apply raises for the previous contract-less period and does not account for the loss of wage value due to inflation during the pandemic.

Lower Profit Sharing

United's profit-sharing is less generous compared to Delta and American Airlines. This will be a crucial factor for Delta, which continues to earn more than United. The United flight attendants' union is trying to organize at Delta, but they won’t be able to claim that their crew earns more than non-union flight attendants at Delta.

Flight attendants at Delta receive annual pay increases, while it takes up to 5.5 years for United to see similar raises. By 2026, Delta flight attendants are expected to earn an additional month’s salary. American Airlines adopted Delta's profit-sharing formula in their 2024 contract, which allocates 10% of the first $2.5 billion in profits and 20% of the remaining profits.

Absence of the Preferential Bidding System

One notable aspect of this contract is the absence of the Preferential Bidding System (PBS), despite United's long-standing calls for it. This system has been in place for United’s pilots for the past 20 years and is also used by competing airlines. With PBS, flight attendants can bid on what they prefer, and the system assigns flights according to their preferences.

Without PBS, the current process involves management creating predetermined monthly schedules that flight attendants will bid on in order of priority. Those who win will know their work schedule for the month. This creates uncertainty for many flight attendants, particularly those who are used to a stable routine.

United Finally May Own a Regional Airline

To enhance salaries, the union had to give up certain provisions. Now, United Airlines may finally have the opportunity to own a regional airline without having to utilize their official flight attendants. Flight attendants will have to revert to more standard practices in the industry, which will now depend on pilot regulations.