Allegiant Flight Attendants Vote to Approve New Labor Contract

Rhea-AI Summary

Allegiant flight attendants have approved a new labor contract with wage increases ranging from 20 to 41.2 percent. The agreement was ratified by 89 percent of flight attendants, with various enhancements such as improved pay overrides and quality of life improvements. The contract also includes a 3 percent hourly pay increase each year, a $10 million lump sum bonus, and a minimum $1,500 lump sum bonus for all flight attendants. Allegiant and TWU Local 577 were able to secure the new contract in just over a year and a half of bargaining, reflecting a positive working relationship.

Positive

• Flight attendants ratified a new five-year agreement with immediate wage increases ranging from 20 to 41.2 percent.
• The agreement was approved by 89 percent of flight attendants, with 97 percent of members voting.
• The contract includes enhancements such as improved pay overrides and quality of life improvements.
• Flight attendants will receive a 3 percent hourly pay increase each year, resulting in a 41 percent average wage increase over the contract's life.
• All flight attendants will receive a combined $10 million lump sum bonus, with a minimum $1,500 lump sum bonus or a bonus of approximately $1,013 per year of service.
• Allegiant and TWU Local 577 secured the new contract in just over a year and a half of bargaining, building on their positive working relationship.

Negative

• None.

Agreement between Allegiant and TWU Local 577 members overwhelmingly ratified by flight attendants

LAS VEGAS, April 16, 2024 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) today announced that the company and the Transport Workers Union of America, AFL-CIO Local 577, representing Allegiant's flight attendants, have ratified a new five-year agreement with immediate wage increases ranging from 20 to 41.2 percent.

The tentative agreement was ratified by Allegiant flight attendants with a 89 percent approval vote and 97 percent of members voting. The TWU Local 577 represents more than 1,700 Allegiant flight attendants.

Flight attendants received an average pay increase of 25 percent upon the contract's ratification. Flight attendants at the top of the wage scale receive a 41.2 percent wage increase. In addition to the wage increases, the contract includes many other enhancements such as improved pay overrides.  

"We are so pleased to announce a ratified agreement with the TWU Local 577," said Allegiant President Gregory C. Anderson. "Our cabin crews take care of our customers ensuring their safety and comfort as our ambassadors in the sky and their work is integral to the success of our operations. This contract is structured to meaningfully improve their experience and better recognize their vital role as part of Team Allegiant."

In addition to pay raises, the new contract provides several quality of life improvements for TWU 577 members. One major improvement is the greater "duty rig," which will increase the amount of time flight attendants are paid for being on duty. The contract also contains an improved 401k match, a cap on healthcare cost share increases, and other insurance improvements. In addition to the average 25 percent wage increase upon ratification, all flight attendants will receive an hourly pay increase of 3 percent each year, for a combined 41 percent average wage increase over the life of the contract. In addition to wage increases, the Local 577 members will receive a combined $10 million lump sum bonus. Flight attendants will receive a minimum $1,500  lump sum bonus or a bonus of approximately $1,013 per year of service, whichever is greater.  

The parties' previous collective bargaining agreement became amendable on December 21, 2022, and Allegiant and the TWU were able to secure the new contract in just over a year and a half of bargaining by building on their strong positive working relationship.     

Allegiant – Together We Fly™

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF

Media Contact
Phone: 702-800-2020
Email: mediarelations@allegiantair.com

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SOURCE Allegiant Travel Company

FAQ

What is the outcome of the vote by Allegiant flight attendants on the new labor contract?

Allegiant flight attendants overwhelmingly approved a new five-year agreement with immediate wage increases ranging from 20 to 41.2 percent.

How many flight attendants voted in favor of the new contract?

The agreement was ratified by 89 percent of Allegiant flight attendants, with 97 percent of members voting.

What are some of the enhancements included in the new contract for Allegiant flight attendants?

The contract includes improvements such as enhanced pay overrides, quality of life enhancements, a 3 percent hourly pay increase each year, and a $10 million lump sum bonus for all flight attendants.

How long is the new labor contract between Allegiant and TWU Local 577?

The new labor contract between Allegiant and TWU Local 577 is for a duration of five years.

What is the average wage increase for Allegiant flight attendants over the life of the new contract?

Allegiant flight attendants will receive an average 41 percent wage increase over the life of the new five-year contract.