Allegiant Travel Co. and the Transport Workers Union of America, Local 577, which represents Allegiant's flight attendants, have approved a new five-year deal that includes immediate pay rises between 20 and 41.2 percent, the company announced on Tuesday.
Allegiant flight attendants ratified the preliminary agreement with a landslide 89% approval vote, with 97% of union members participating. Transport Workers Union (TWU) Local 577 represents over 1,700 flight attendants working for Allegiant.
Following the contract's approval, flight attendants received an average pay hike of 25%. Those flight attendants at the top end of the wage scale were given a 41.2% salary increase.
Beyond the pay raises, the new deal brings several quality-of-life enhancements for TWU 577 members. Among the most notable benefits is an increase in the "duty rig", which will extend the period flight attendants are compensated for being on duty. The updated agreement also presents an improved 401k matching plan, sets a limit on increases in healthcare cost share, and improves insurance benefits.
In addition to the initial 25% wage increase, all flight attendants will receive a yearly pay rise of 3%. This amounts to an average of a 41 percent wage increase over the duration of the contract.
Furthermore, in addition to wage increases, the Local 577 members will collectively receive a lump-sum bonus of $10 million. Each flight attendant can expect a minimum lump-sum bonus of $1,500 or a bonus equivalent to roughly $1,013 per year of service - whichever is greater.
