Alaska Air Flight Attendants Are Set for 32% Increase in Pay

(Bloomberg) -- Alaska Air Group Inc.’s unionized flight attendants are in line to get an average pay increase of 32% as part of a new “record contract” with the US carrier, according to a union statement late Tuesday.

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The Association of Flight Attendants Alaska disclosed further details of its tentative three-year agreement, which, among a slew of improved changes to remuneration and conditions, includes around 21 months of retroactive pay.

The initial agreement avoids a costly showdown with workers in the near term, a boon for the airline as the profitable peak summer travel period gets underway. A deal could have broader implications for larger rivals American Airlines Group Inc. and United Airlines Holdings Inc. as unions seek similar bumper increases.

A formal deal still needs to be ratified by the full membership. Voting will take place later this month and conclude on Aug. 14.

Southwest Airlines Co. secured a four-year agreement with its cabin crew in April that provided an initial 22.3% pay rise, followed by annual increases of 3%. The labor contract is worth $6.3 billion, and flight attendants will get $364 million in retroactive pay as part of the agreement.

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