The International Association of Machinists and Aerospace Workers (IAM) has reached a tentative agreement with Alaska Airlines that, for the first time in the carrier’s history, will put approximately 5,300 Alaska Airlines workers at the top of the airline industry’s pay scale.
The tentative agreement extension covers IAM members who work in Ramp, Stores, Clerical, Office and Passenger Service at the carrier. Alaska Airlines hubs include Anchorage, Alaska; Seattle-Tacoma; Portland, Ore.; San Francisco; and Los Angeles.
If ratified by IAM members at Alaska Airlines, the four-year contract would:
- Raise base wage rates for all classifications to between 8.9% and 17.4% on Aug. 10, 2022.
- Further raise all base wages rates for all classifications by 2.5% on Aug. 10, 2023
- Base wage rate will also increase a minimum of 2.5% on Aug. 10, 2024 and Aug. 10 2025, subject to an industry review.
- In 2024 and 2025, the agreement calls for an industry review, which will give employees a minimum 2.5% base wage rate or the percentage required to match the top of the scale as the No. 4 airline, whichever is greater.
- No changes to strong existing medical and other benefits.
- Longevity pay increases starting after year 6 at 5 cents per hour, and topping out after year 12 and beyond at 35 cents per hour.
- Strong existing job security language extended until Sept. 27, 2028.
TENTATIVE AGREEMENT HIGHLIGHTS
Existing Collective Bargaining Agreements extended 2-years with a new amendable date of 9/27/26
BASE WAGE RATE INCREASES
- All Base Wage Rates will be increased on August 10, 2022 between 8.9% to 17.4% for all classifications.
- All Base Wage Rates will be increased on August 10, 2023 by 2.5% for all classifications.
- All Base Wage Rates will be increased on August 10, 2024 by a minimum of 2.5% for all classifications, subject to industry wage review.
- All Base Wage Rates will be increased on August 10, 2025 by a minimum of 2.5% for all classifications, subject to industry wage review.
- $.05 cents after 6 years
- $.10 cents after 7 years
- $.15 cents after 8 years
- $.20 cents after 9 years
- $.25 cents after 10 years
- $.30 cents after 11 years
- $.35 cents after 12 years and beyond
INDUSTRY WAGE REVIEW
Existing Wage review LOA in both agreements modified to reflect a review in 2024 and 2025, which will give us a minimum 2.5% raise or an increase that will match the Top of Scale to number 4 in the industry, whichever is greater.
BENEFITS INCLUDING MEDICAL
No changes to existing language in the Collective Bargaining Agreements.
Existing work security in current Collective Bargaining Agreements extended to September 27, 2028, which is two years past the new amendable date of September 27, 2026.