For the time being we’re seeing pilots at main US airways making an attempt to barter new contracts. They didn’t have a lot leverage to barter in the course of the first two years of the pandemic, and with pilots now being in such excessive demand, that is clearly a good time to attempt to get a brand new contract.
Thus far Alaska Airways is the one main US airline the place pilots have ratified a brand new contract, although Delta Air Strains won’t be too far behind…
Delta & pilots attain settlement in precept on new contract
Delta and its pilots union have reached a preliminary settlement for a brand new contract, which might see pilots on the Atlanta-based airline getting an enormous pay bump. This new contract could be value $7.2 billion in worth over the course of 4 years, in response to a memo from the union to pilots.
This new contract would come with vital pay will increase, each retroactively and going ahead:
- Pilots would instantly obtain an 18% pay enhance the day the contract is signed
- Pilots would then obtain a 5% pay enhance one 12 months after that
- Pilots would then obtain two 4% pay will increase within the two years that observe
- Pilots would obtain a one-time cost of 4% of 2020 and 2021 pay, plus a 14% cost of 2022 pay
On prime of that, pilots would get quality-of-life enhancements, which might make up roughly one-quarter of the worth of the general settlement. Pilots after all nonetheless must vote on the brand new contract, so it would probably be a number of weeks till that is finalized.
That is nice progress, as in late October, Delta pilots voted to licensed a strike — 96% of pilots solid votes, and 99% of these pilots voted in favor of authorizing a strike. Admittedly this was extra about sending a message to administration than the rest, since authorizing a strike is just the primary of many steps to a strike really taking place. We haven’t seen a strike amongst pilots at a US airline for greater than 15 years.
How a lot would Delta pilots be paid with this new contract?
I’ve written up to now about how a lot airline pilots are paid, and the final math that goes into that. Airline Pilot Central publishes pay charges of all the foremost airways, together with Delta.
Delta first officer pay ranges from $92 to $242 per hour, whereas Delta captain pay ranges from $238 to $334 per hour. You’ll be able to typically simply add three zeroes to the top of that to roughly determine annual pay, although with Delta it’s often even a bit larger than that, due to revenue sharing. If this contract is ratified, Delta pilots could be taking a look at pay raises of over 30% over the subsequent 4 years.
In different phrases, Delta’s most senior captains could be incomes roughly $440 per hour, or round $440K per 12 months (and possibly much more than that).
With American and United each presently negotiating contracts, you’ll be able to guess that pilots at each airways shall be seeking to Delta as a benchmark.
Additionally needless to say despite the fact that Alaska has finalized its contract, there’s a provision that if pilots at different airways get a greater contract, Alaska will match it. Alaska pilots are entitled to the common of the highest of the pay scales of American, Delta, JetBlue, Southwest, and United, so these pilots could possibly be taking a look at some further raises as effectively.
Backside line
Delta administration and the union representing pilots have reached a tentative settlement for a brand new contract. The contract shall be value $7.2 billion to pilots over the subsequent 4 years, and can embody a direct 18% pay elevate, an additional 13% in pay raises within the three years that observe, retroactive pay raises, and high quality of life enhancements.
You’ll be able to guess that each executives and unions at American and United are watching this carefully, as a result of it in all probability offers them a way of what they will count on to pay.
What do you make of Delta’s new tentative pilot settlement?
