United, Union Reach Tentative Contract

United Airlines and the union representing 25,000 of the carrier's assorted airport workers late yesterday reached a tentative contract agreement after more than two years of negotiations. Should the contract be ratified by the rank and file of the International Association of Machinists District 141 in a vote to be held within the next two weeks, United would have closed all open contracts and will begin seeking labor concessions.

United chairman and CEO Jack Creighton called the tentative agreement "a critical milestone in developing a recovery plan."

"These agreements provide recovery for United's front line employees," said Randy Canale, IAM District 141 president and lead negotiator. "This is a forward-looking agreement. The industry is struggling today, but indicators are starting to point to recovery."

If the contract is ratified, United will then begin negotiating concessions with all employee groups to slash companywide costs in an effort to return to profitability. However, that will be no easy task. The Association of Flight Attendants, for example, today told Creighton it will not participate in talks about possible concessions.

"We take exception to the company's characterization that our costs are the reason for United's financial woes," said AFA United Master Executive Council president Linda Farrow. "In fact, our contract ensures that United's flight attendant costs are similar to the average flight attendant costs of United's major competitors. Nothing could be more competitive than that."