United Airlines Union Rejects Deal

United Airlines (NASDAQ:UAL) flight attendants voted down a new labor contract that called for immediate raises of at least 26% and other quality-of-life improvements, their union said Tuesday.The flight attendants’ last raise was in 2020. Their union, the Association of Flight Attendants-CWA, which represents the airline’s some 28,000 cabin crew members, and the airline had reached a tentative agreement in May.“United Flight Attendants today voted to send a strong message to United Airlines management by rejecting a tentative agreement that didn’t go far enough to address the years of sacrifice and hard work to make the airline the success it is today,” said Ken Diaz, president of the union’s United chapter.Diaz said the union will survey members on key improvements they want in another contract.Of the 92% of eligible voters who cast ballots, 71% voted against the contract, the union said.U.S. flight attendants have pushed for wage increases for years. Flight attendants at other airlines, pilots and other work groups secured new labor deals in the wake of the COVID-19 pandemic.United’s flight attendants voted last year to authorize the union to strike if a deal wasn’t reached. They had also sought federal mediation for the labor talks.The airline said in a statement that it will keep working with the union.“Our flight attendants are the best in the industry and this tentative agreement included numerous improvements and industry-leading pay,” United said in a statement. UAL shares fell 47 cents to $90.18.