- United Airlines (NASDAQ:UAL +5.7%) says it reached a tentative deal with its mechanics union on a first joint labor contract since the combination of United and Continental Airlines, a step toward improving UAL's rocky labor relations.
- The deal with the Teamsters would boost top pay immediately by 25% to an industry-leading $46.15/hour and result in 33% higher pay by the end of the six-year contract, says UAL's VP of maintenance operations.
- The agreement, which still must be approved by the ~8,600 mechanics, comes after more than three years of negotiations; while mechanics from the two subsidiaries have long been able to work interchangeably on aircraft in the combined fleet, they did not have a single contract even though both branches are represented by the Teamsters union.