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United, Pilots Reach Tentative Deal

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Source: Media Article

Date: Dec 14, 2004

CHICAGO (Reuters) - The pilots union at United Airlines on Tuesday said its negotiators have reached a tentative contract deal with the bankrupt No. 2 U.S. airline.

Leaders of the Air Line Pilots Association will attend a special meeting in Chicago on Thursday to review the deal, spokesman Capt. Herb Hunter told Reuters. He said the union would not disclose any details about the deal until its leaders meet to discuss it.

"The negotiating committee and the company have reached a tentative agreement," Hunter said. "The (union's Master Executive Council) will come into town and discuss that on Thursday, and we'll decide what we're going to do then."

If union leaders approve the deal, it would be put to the membership for a vote.

UAL Corp.'s United has been seeking another round of big concessions from its unionized workers as part of its effort to emerge from bankruptcy after two years under court protection from creditors.

It won $2.56 billion in concessions from its unions earlier in the bankruptcy process, but has said it needs another $725 million from labor, including $191 million from pilots, to attract crucial financing it needs to exit Chapter 11.

A spokeswoman for United said the company was pleased to have reached the tentative agreement with ALPA but would not comment on the terms of the deal.

UAL said on Monday its salaried employees would take pay cuts of 4 percent, while pay of management employees would be reduced by 6 percent and that of officers by 8 percent. The company hopes the move, combined with benefit changes and productivity enhancements, will save it $112 million a year.

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