More than 20,000 ground workers have a new contract at United Airlines. The ratification Thursday brings UAL closer to the last labor agreement it needs to get out of Chapter 11.
The International Association of Machinists (despite the name, it doesn't represent United mechanics any more, but does still represent baggage handlers, food service workers, guards and the people behind the check-in counter) said 67 percent of those who voted, voted for the new five-year contract.
"The decision to agree to an amended contract was not an easy one to make, but it was without question the right choice," IAM President Randy Canale said.
The contract cuts pay between 3 percent and 5.5 percent and lays out pension plan rules going forward. United (OTC: UALAQ) said this saves it $176 million a year.
"This agreement means that we now have ratified, consensually negotiated collective bargaining agreements with all our labor groups," UAL said Thursday. "We commend the IAM for their hard work and creativity in developing solutions to the pension issue while meeting United's financial needs."
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