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.
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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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