NYTimes.com Article: United Mechanics' Union OKs Contract

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United Mechanics' Union OKs Contract

April 11, 2003
By THE ASSOCIATED PRESS






Filed at 9:24 a.m. ET

CHICAGO (AP) -- The union representing United Airlines'
mechanics announced a tentative agreement Friday on a
contract providing United with $2.09 billion in labor
savings over six years.

The announcement represents another significant step for
United in its bankruptcy restructuring. The mechanics'
union was the only group that had failed to agree to a new
long-term contract as part of the airline's push to slash
labor costs drastically during its Chapter 11
reorganization.

The pact must still be ratified by the more than 10,000
mechanics and aircraft cleaners. Voting is scheduled for
April 29.

Without an agreement, bankruptcy court hearings were set to
begin Monday on United's motion to void the mechanics'
contract May 1 and have its own wages and work rules
imposed.

The International Association of Mechanics and Aerospace
Workers said the yearly modifications to pay and benefits
total $349 million under the pact, including a 13 percent
cut in wages. If approved, that is the last remaining
portion of the $2.56 billion in annual cuts sought by
United.

``From the moment United Airlines declared bankruptcy on
Dec. 9, a painful restructuring was inevitable,'' said
Scotty Ford, president of IAM District 141-M representing
the mechanics. ``Despite proposed changes to pay, benefits
and working conditions, this agreement preserves the
essential value of a job at United Airlines.''

United hoped to get a second dose of good news later Friday
when the pilots' union was scheduled to announce voting
results on ratification of a contract that would result in
$1.1 billion in annual savings for United.

http://www.nytimes.com/aponline/business/AP-United-Airlines.html?ex=1051068920&ei=1&en=5ce3b0a98ce8ced4



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