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Alaska, the ninth-largest U.S. airline, initially sought concessions when talks began with the Machinists, the union said. The Seattle-based unit of Alaska Air Group Inc. had losses totaling $21.2 million in the past two years.
"This ends nearly four years of demanding negotiations with Alaska Airlines," Robert De Pace, the Machinists president, said in a statement.
Under the agreements, worker pay will increase 6 percent over the term of the contracts, which expire in 2010. Employees will get a $500 bonus payable within 30 days of the signing of the contracts. The agreements also establish a 60- day period under which workers in the top four seniority-based pay levels can retire early with severance.
"These agreements are the results of hard work by both parties in a highly challenging environment," Bill Ayer, Alaska's chief executive, said in a statement.
The Machinists union said it represents 485 ground workers and 2,571 clerical and passenger service employees at Alaska.
Alaska Airlines (ALK) was down in mid-day trading with all the other air carriers in the US. The price of oil continues to weigh on the sector. However the price of their stock did climb after the news was released of the new contracts.
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