Hawaiian Airlines and the Air Line Pilots Association announced Friday that the union’s membership ratified a 63-month contract amendment that provides compensation increases for the airline’s 670 pilots.
Pilots approved the contract amendment outlined in a tentative agreement reached last month between Hawaiian and ALPA.
The amendment takes effect April 1 and its term extends through July 1, 2022.
Of the 97 percent of the pilots who voted, 76 percent cast ballots in favor of the agreement.
It includes pay rates backdated to September 2015 that will immediately increase pay for the airline’s 665 pilots between 20 to 45 percent, depending on an individual pilot’s seat, years of service, and aircraft type. By the end of the contract in 2022, overall pay rates will have increased between 36 and 86 percent.
A unique feature of the agreement is a new voluntary employees’ beneficiary association, or VEBA, that will replace Hawaiian’s industry-leading retiree health-care program. The company will contribute over $100 million to fund the VEBA, which will be privately administered by a pilot-run board of directors and provides that retiree health benefits will continue even if the airline changes hands.
The new contract will also harmonize the airline’s bankruptcy-era pilot retirement programs, bringing all pilots under a single retirement plan by 2022.