United Air reaches tentative deal with wage hike for maintenance workers

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[October 24, 2015]  By Jeffrey Dastin
 
 (Reuters) - United Airlines <UAL.N> said on Friday it reached a tentative deal with the union representing its maintenance workers, paving the way for a wage hike 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 $46.15 per hour, according to an email the company sent employees and seen by Reuters. It also includes an offer for a $100,000 buyout for at least some workers and furlough protection.

Before the raise 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.

Shares of United were up more than 3 percent in late morning trade.

Ratification would mark an achievement for the new management team at United Continental Holdings Inc, 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, the second-largest U.S. airline by capacity, putting in management that has focused on reaching labor deals.

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

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Oscar Munoz succeeded him, spending his first month on the job traversing the United States to meet with workers and air travelers 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.

(Reporting by Jeffrey Dastin in New York; Editing by Dan Grebler)

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