United Mechanics Reject Contract Offer

Maintenance workers at United Airlines have overwhelmingly rejected a new contract offer, their union, adding it will seek approval from US regulators to strike.

More than 93 percent of mechanics who voted decided against the company's offer, the International Brotherhood of Teamsters said in a release.

The union said it will petition the US National Mediation Board to release it from mediated talks, although it will face a number of hurdles before workers can receive the legal go-ahead for a walkout.

The vote marks a setback in United's years-long effort to reach a joint deal with the technicians. It has yet to conclude a contract covering maintenance workers from both United and Continental since the carriers merged in 2010.

"At a time when United Airlines is incredibly profitable, it is clear that mechanics deserve a better offer from the company," Jim Hoffa, Teamsters General President, said in the statement.

Chicago-based United more than doubled its adjusted fourth-quarter profit from a year ago to USD$934 million. Its contract offer provided for an immediate 25 percent increase and bonuses averaging USD$9,000, though the Teamsters expressed concern regarding wages for incoming mechanics.

The National Mediation Board is not obliged to accept the Teamsters' request to halt talks, according to Jerry Glass, president of the F&H Solutions Group consultancy.

If it does, United and the union will have 30 days to reach a deal, after which the US executive branch or Congress can intervene to avert a strike, Glass said.

There is "a very high likelihood" based on precedent that the US president would appoint an emergency board to recommend a solution to prevent disruptions to passengers and interstate commerce, he said.

United is the third-largest US airline based on January flight capacity.

"Although we are disappointed by this outcome, we are eager to get right back to the table," said Oscar Munoz, chief executive of parent United Continental, in a post on a company website.

Munoz has made boosting workers' morale a priority since taking on the airline's top job in September. The company recently secured a contract extension for pilots ahead of schedule.

United and the Teamsters paused talks in October after American Airlines announced a wage increase, resetting what they considered was an acceptable offer.