United Airline Workers OK Contract

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By DAVE CARPENTER

(AP) Tom Reardon, assistant general chairman of the International
Association of Machinist and Aerospace...

CHICAGO (AP) - United Airlines mechanics and aircraft cleaners approved a
contract Tuesday that will give them their first raise since 1994 and end a
bitter two-year dispute.

The contract was ratified by 59 percent of the voting membership, union
officials said.

The approval averted a strike that could have started as soon as 12:01 a.m.
Thursday EST. Analysts have said a walkout would have grounded the airline
and forced it into bankruptcy.

"Today's ratification puts a long and difficult process behind us," said
United's chief executive officer, Jack Creighton.

The ratification removes a key obstacle for the struggling carrier as it
pursues a recovery plan aimed at stemming its financial hemorrhaging.

The Elk Grove Village, Ill.-based airline lost an industry-record $2.1
billion last year and its troubles have continued - the carrier said Tuesday
that passenger traffic in February fell 13.8 percent from a year ago.

The 12,800 mechanics and cleaners resoundingly rejected a previous contract
offer three weeks ago and authorized a strike. But United sweetened the
terms of the five-year pact and negotiators reached a tentative agreement
Feb. 18.

"I want to thank our members at United for the strong support they gave
their negotiating committee under very difficult circumstances," said union
president Scotty Ford. "Their determination and professionalism allowed the
negotiating committee to obtain the best agreement possible."

Under the new contract, senior mechanics' pay would go from $25.60 an hour
to $35.14, or about $73,000 a year. For top-scale aircraft cleaners, hourly
pay would increase 19 percent to $19.76 an hour, or about $41,000 a year.

Those figures were unchanged from the previous offer, crafted by a
presidential emergency board. But United made other key changes in order to
win the approval of negotiators from District 141-M of the International
Association of Machinists and Aerospace Workers.

The airline increased the retroactive pay due each mechanic to $16,500 from
$12,500, speeded up the timetable under which it will be paid, boosted
pensions and agreed workers would retain the right to vote on concessions
envisioned as part of United's emergency recovery plan.

Some mechanics remained opposed because they disagreed with the amount or
timing of retroactive wages for work since the contract came up for renewal
in July 2000. Retroactive pay won't begin until December.

Moving to ensure approval, United went to court last week to remove another
sore spot with mechanics - an injunction it obtained last year in an effort
to end work slowdowns

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