NYTimes.com Article: United Workers OK Deal for Raises

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United Workers OK Deal for Raises

May 11, 2002
By THE ASSOCIATED PRESS






Filed at 10:18 a.m. ET



CHICAGO (AP) -- United Airlines ground workers approved a
labor agreement early Saturday that settles the carrier's
last unresolved contract and clears the way for talks on
companywide wage concessions.

The pact calls for pay raises totaling 29 percent over four
years for United's 25,000 ramp workers, ticket and
reservations agents, security guards and food service
employees. Union leaders had unanimously recommended
ratification.

The contract, hammered out last month, gives the ground
workers their first raises since 1994.

United's pilots, mechanics and aircraft cleaners already
have received hefty raises during a turbulent two-year
period for the airline. But the carrier wants them to give
some back to help it cut costs and pull out of the worst
financial troubles in its history.

``With this vote, United Airlines takes another major step
forward in its quest for recovery,'' chief executive
officer Jack Creighton said in a statement. ``Only through
the cooperative efforts of all of us at United can we
return to our rightful place as the leader in the airline
industry.''

Randy Canale, president of Local 141 of the International
Association of Machinists and Aerospace Workers, said he
was pleased with the vote.

``These IAM members can now move beyond the years of
sacrifice that marked their employment at United during the
past 8 years,'' he said. ``Many employees took substantial
pay cuts in 1994 to protect their jobs and prevent a
breakup of the airline proposed by previous management.''

Creighton has been involved in talks with union leaders to
implement a financial recovery program, which may include
temporary pay cuts. He is expected to convene more talks
soon, this time including the International Association of
Machinists and Aerospace Workers, which had refused to
participate until the ground workers' deal was ratified.

Creighton scored a key initial breakthrough last month when
the powerful pilots' union agreed to work with the airline
to develop a recovery program.

The CEO has said he wants to nail down an agreement with
United employees before retiring in the next few months.
Employees own 55 percent of the carrier and hold three
board seats.

The airline has recently been losing $4 million to $5
million a day.

http://www.nytimes.com/aponline/business/AP-United-Labor.html?ex=1022136911&ei=1&en=93b85573c9539e33



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