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Published on 6/17/2005 in the Prospect News Distressed Debt Daily.

United Airlines, machinists' union reach tentative collective bargaining agreement

By Caroline Salls

Pittsburgh, June 17 - United Airlines Inc. reached a five-year tentative agreement with The International Association of Machinists and Aerospace Workers that resolves all outstanding issues for an amended collective bargaining agreement, according to a union news release.

"We believe this tentative agreement is fair to our members and contributes the cost savings United needs," Randy Canale, president of IAM District 141, said in the release.

"The IAM Negotiating Committee unanimously recommends ratification of this tentative agreement as the best way to avoid contract termination, provide secure pension benefits and job security for our members."

The agreement establishes participation in the multi-employer IAM National Pension Plan, a fully funded defined benefit plan covering 65,000 beneficiaries at 1,700 U.S. companies.

The full details of the agreement will be presented to the IAM District 141 executive board on Tuesday and then released to the membership later that day.

"This agreement preserves the integrity of our contracts and bargaining rights at United," said Canale. "A negative decision in court could have wiped out 50 years of collective bargaining achievements."

The union members will vote on the agreement through July 22.

UAL Corp., the Chicago-based parent of United Air Lines, filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.


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