Reported Earlier, Allegiant Flight Attendants Ratify New 5-Year Agreement With Wage Increase Between 20%-41.2%
Portfolio Pulse from Benzinga Newsdesk
Allegiant flight attendants, represented by TWU Local 577, have ratified a new 5-year agreement, approving it with an 89% vote. The contract includes a 20%-41.2% wage increase, with an average increase of 25% upon ratification. More than 1,700 flight attendants are covered by this agreement, which also features improved pay overrides among other enhancements.
April 17, 2024 | 6:23 am
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Allegiant Air's flight attendants have ratified a new 5-year labor agreement, resulting in wage increases between 20%-41.2%, with an average increase of 25%. The agreement covers over 1,700 flight attendants and includes several enhancements such as improved pay overrides.
The ratification of the new labor agreement by Allegiant's flight attendants is likely to have a positive short-term impact on ALGT's stock. Labor agreements can lead to improved employee satisfaction and productivity, which in turn can enhance company performance and reputation. The significant approval rate (89%) and the substantial wage increases indicate strong union support and potentially improved labor relations, reducing the risk of labor disputes that could disrupt operations. However, the increased labor costs could impact the company's financials, but the positive aspects likely outweigh the negatives in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90