United’s Mechanics Union Ratifies Contract

July 1, 2005

United’s Mechanics Union Ratifies Contract
June 1, 2005 – Members of the Aircraft Mechanics Fraternal Association ratified a tentative five-year contract agreement with United Airlines Tuesday, May 31. The agreement, which includes an immediate 3.9 percent pay cut, averts a strike of 20,000 union members.

"We appreciate that the members of AMFA have voted to ratify their tentative agreement with United," the airline released in a statement regarding the AMFA ratification vote. "This is an important and necessary step in providing the cost savings United needs to finish its restructuring successfully."

The tentative deal gives United the $96 million in annual wage and benefit cuts it was seeking from AMFA, union spokesman Terry O’Rourke said late Monday. The wage decrease follows a 14 percent reduction the union agreed to two years ago as United attempts to reorganize under chapter 11 bankruptcy. Union members would get 1.5 percent annual raises beginning Jan. 1, 2006; however, their salaries would not get back to, and then slightly surpass, the present-day level until Jan. 1, 2008.