SEATTLE (AP) -- Alaska Airlines and the union representing its pilots have avoided a potential legal battle after reaching a tentative agreement on a new five-year contract, the company and the Air Line Pilots Association said Friday.
The agreement would supersede an arbitrator's ruling last month that cut pilots' pay by an average of 26 percent and required them to pay a higher share of heath insurance premiums, which the airline expected would save it $80 million to $90 million a year.
The tentative agreement calls for a smaller pay cut: 20 percent across the board instead of a range that topped out at 34 percent.
There are also work-rule changes, which the company said would result in significant productivity improvements. Current employees would also be able to choose between the existing pension plan and a defined contribution retirement plan.
Capt. Mark Bryant, chairman of the pilots union, said he's hopeful the tentative deal ''will foster a positive work environment conducive to providing our passengers with the safe, reliable, superior service for which Alaska is known.''
ALPA sued the Seattle-based carrier in federal court earlier this month, seeking to vacate the arbitrator's decision. The union claimed the arbitration board had failed to follow rules about setting wages, among other things.
The new contract must be approved by the union's 1,500 pilots. A vote is scheduled for Wednesday.
