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United Offers Pilots 13% Raise in Bid to Find Labor Peace

  • Initial boost said to be followed by two more annual increases
  • Accord awaits union leadership approval, rank-and-file vote

United Continental Holdings Inc., seeking labor peace five years after the airline’s creation in a merger, is offering pilots a raise in a proposed contract that would put them at or near the top of the U.S. industry’s pay scale, two people briefed on the plan said.

The tentative deal calls for a 13 percent increase in 2016, followed by annual boosts of 3 percent and 2 percent, said the people, who asked not to be identified because the negotiations aren’t public. United announced the “agreement in principle” on a two-year extension with the Air Line Pilots Association on Nov. 20 without giving specifics.