updated 5/1/2005 1:00:23 PM ET 2005-05-01T17:00:23

After a year and a half of failed negotiations and months of arbitration, Alaska Airlines and its pilots have a new contract, the company announced.

Arbitrator Richard Kasher handed the agreement to the airline and the Air Line Pilots Association on Saturday, company spokesman Lou Cancelmi. The agreement goes into effect Sunday.

Dennis Hamel, Alaska’s vice president of employee services, said the contract included a competitive wage and benefit package for its pilots and would help the company have a better cost alignment with other carriers.

Messages left with the union were not immediately returned Saturday evening.

Terms of the agreement included an approximate 26 percent reduction in pilot wages and higher employee health care contributions, the company said. No changes were made to the pilots’ pension or profit-sharing plans.

Contract talks began in 2003, and an arbitrator was called in when both sides failed to reach an agreement by a Dec. 15, 2004, deadline. Sticking points were pay, retirement and insurance.

Alaska Airlines, the nation’s ninth largest carrier, employs 1,465 pilots.

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.71%
$30K home equity loan FICO 5.26%
$75K home equity loan FICO 4.70%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.14%
17.14%
Source: Bankrate.com