Allegiant Air and the International Brotherhood of Teamsters, representing the airline’s pilots, have reached a tentative agreement on a contract, the first labor agreement ever reached by the Las Vegas-based company.
In a statement released late Tuesday, the company said that the agreement would have to be ratified by a vote of the pilots. Ratification is expected to be completed by late July.
“We are pleased to have come to an agreement with the IBT and our pilots,” Allegiant CEO Maurice Gallagher said in the statement announcing the contract. “This contract, once approved by our pilots, will allow us to move into a new chapter at Allegiant.”
Dan Wells, president of Teamsters Local 1224, said the contract represents a victory for pilots with significant pay raises, improved scheduling procedures, pilot participation in a company profit-sharing plan, improvements in medical coverage benefits and a better 401(k) retirement program.
The pilots voted in August 2012 for representation by the Teamsters. Allegiant management and union negotiators have been working in mediated sessions with the National Mediation Board since February 2014.
The relationship between the Teamsters and Allegiant has been strained since talks began. The primary issues between the two sides have been the scheduling of pilots and pay.
Last year, Allegiant had to go to court to block a threatened strike by the pilots.
Since then, the union has taken every opportunity to point out operational deficiencies that have plagued the airline, mostly on its East Coast routes.
Contact Richard N. Velotta at firstname.lastname@example.org or 702-477-3893. Find him on Twitter: @RickVelotta