United union approves contract By Chris Woodyard, USA TODAY United Airlines' mechanics and cleaners ratified a five-year contract late Tuesday, averting a possible strike at the nation's second-largest airline. The contract, approved by 59% of those voting, will make the 13,000 members of the International Association of Machinists (IAM) the airline industry's best-paid workers in their job classes, the IAM says. United's labor troubles may not be over, however. UAL, the airline's parent, lost $2.1 billion last year. It is now expected to focus on obtaining cost-saving concessions from all its labor groups, including the machinists. Labor is United's single-largest cost, accounting for 38% of annual expenses. "Today's ratification proves to our customers and ourselves that there's a light at the end of the tunnel," said Jack Creighton, CEO of United and UAL. Many industry analysts had predicted that the agreement would be approved, averting a strike that could have begun as early as Thursday morning. Union leaders backed the latest contract proposal, but had opposed one that the union soundly rejected last month. A strike would have grounded United, disrupting travel at dozens of airports around the country. United handles about a fifth of the nation's commercial air traffic. IAM members have been working at 1994 wage rates under a contract that became renegotiable in 2000. The new five-year agreement gives them raises of up to 37%. Sealing an agreement with the IAM was one of the biggest tests yet for Creighton, who became chief executive last year after former CEO James Goodwin resigned. Creighton had been a director on UAL's board and is a former CEO of Weyerhaeuser. Majority-owned by employees, United has been hurt by labor conflicts for the past two years, a failed bid to acquire US Airways that fell apart in 2001 and a downturn in travel that got worse after Sept. 11. Two of United's jets were hijacked in the attacks. The IAM says the contract approved Tuesday differs from the rejected proposal in these areas: Pay. The first pay raises would be retroactive to July 12, 2000, the first day on which the previous contract could be amended. The retroactive payments, which are scheduled to begin this year under the new agreement, would have begun next year under the rejected proposal. Retirement. The dollar figure used to calculate retirement pay was increased under the new agreement. Changes. The IAM's members will get a chance to vote on any concessions negotiated later with United's management. UAL stock closed Tuesday at $15.53, down 87 cents. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** ICQ Pager: mailto:15836110@pager.icq.com escape email mailto:ejames@escape.ca yahoo email: mailto:triniroj@yahoo.com Trinbago site: http://www.tntisland.com CBSC Group on Yahoo: http://groups.yahoo.com/group/caribsocabrass CBSC Website http://www.tntisland.com/caribbeansocabrassconnection/ ******************************************************* Steel Expressions Orch http://www.escape.ca/~ejames/se/ email #1: mailto:steelexpressions@yahoo.com email #2: mailto:steelexpressions@home.com ******************************************************* The Trinbago Site of the Week: (Flowerline) http://www.flowerlinetnt.com (Flowerline Florist) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://195.224.187.36/ *********************************************************