United Reaches Tentative Deal With Maintenance Workers

October 23, 2015

United Airlines has reached a tentative deal with the union representing its maintenance workers, paving the way for a wage increase and the first contract to cover technicians from both United and Continental since the airlines merged in 2010.

The deal provides for a 25 percent raise for United's highest-earning technicians, to USD$46.15 per hour, according to an email the company sent to employees. It also includes an offer for a USD$100,000 buyout for at least some workers and furlough protection.

Before the increase takes effect, workers must approve the deal, negotiated by the International Brotherhood of Teamsters. It was not immediately clear when the vote would take place.

Ratification would mark an achievement for the new management team at United, which has faced low employee morale after years of contract talks and difficulty integrating employees from the pre-merger carriers.

Two executive shake-ups have recently rocked United, putting in management that has focused on reaching staff deals.

Its chief executive of five years, Jeff Smisek, resigned in September after an investigation of the airline's relationship with the Port Authority of New York and New Jersey, which manages United's hub airport in Newark.

Oscar Munoz succeeded him, spending his first month on the job traversing the United States to meet workers and customers for input on how to improve the airline.

Munoz suffered a heart attack last week, and United named its general counsel, Brett Hart, as acting CEO. He has vowed to continue Munoz's tone of reconciliation between management and workers.

(Reuters)