April 2016

Change of direction for United?

United Airlines workers have voted to approve contracts that will effectively improve the salaries of some 30,000 baggage handlers, gate agents and other groups employed by the carrier. Although United said last year that it would not be outsourcing more jobs in baggage handling or customer services until at least 2019, clearly that strategy has been reviewed – and ultimately reversed.

In all, there are seven deals tabled that relate to a 30% increase in wages over the next five years, along with US$100m in lump sum payments. Included in the deal is protection against outsourcing; more than that, there is an undertaking to bring more airport work in-house at the carrier’s Los Angeles and San Francisco hubs.