Spirit Airlines, pilots union reach agreement on pay hike contract

Spirit Airlines has reached a five-year tentative agreement with its pilots for pay and benefit increases, the group's union said Wednesday, signalling an end to an acrimonious years-long negotiation. The new contract includes an average pay increase of 43% for the carrier's 1,800 pilots, double-digit contributions to pilots' retirement plans and $75m in ratification compensation. "This tentative agreement represents a positive step toward recognizing our pilots' contributions to the airline," said Stuart Morrison, chairman of the Spirit unit of the Air Line Pilots Association. Contract negotiations had dragged on for nearly three years, the union said. Relations between pilots and management reached a head last summer when Spirit accused pilots of engaging in an illegal work slowdown, resulting in hundreds of flight cancellations and costing the company some $8.5m in revenue. The new Spirit contract is pending pilot approval. Pilots will vote in February on whether to ratify the agreement.<br/>