United mechanics
OK contract

The ratification ends a 2-year
dispute and averts a strike that
could have begun tonight

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By Dave Carpenter
Associated Press

CHICAGO >> United Airlines mechanics and aircraft cleaners approved a contract yesterday that will give them their first raise since 1994 and end a bitter two-year dispute.

The contract was ratified by 59 percent of the voting membership, union officials said.

"I want to thank our members at United for the strong support they gave their negotiating committee under very difficult circumstances," said union president Scotty Ford. "Their determination and professionalism allowed the negotiating committee to obtain the best agreement possible."

The approval averted a strike that could have started as soon as 7:01 p.m. tonight in Hawaii.

United is a major carrier to the Hawaii market, bringing about 20 percent of all arrivals.

It has 19 flights a day between the mainland and Hawaii and one a day between Japan and Honolulu.

In Hawaii, United's pact with the International Association of Machinists and Aerospace Workers affects 66 mechanics and about 100 others in cabin appearance, ground equipment and maintenance jobs.

Analysts have said a walkout could have forced United into bankruptcy.

The ratification removes a key obstacle for the struggling carrier as it pursues a recovery plan aimed at stemming its financial hemorrhaging.

"Ratification puts a long and difficult process behind us," United chief executive Jack Creighton said. "I am particularly pleased to show our customers that they can continue to book future travel on United with full confidence."

The 12,800 mechanics and cleaners resoundingly rejected a previous contract offer three weeks ago and authorized a strike. United sweetened the terms of the five-year pact and negotiators reached a tentative agreement Feb. 18, barely 36 hours before a walkout that would have grounded the airline.

The Elk Grove Village, Ill.-based airline lost an industry-record $2.1 billion last year and its troubles have continued; the carrier said yesterday that passenger traffic in February fell 13.8 percent from a year ago.

Under the new contract,the airline increased the retroactive pay due each mechanic to $16,500 from $12,500, speeded up the timetable under which it will be paid, boosted pensions slightly and agreed workers would retain the right to vote on concessions envisioned as part of United's emergency recovery plan.