United Machinists Agree to Concessions
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The union representing 37,500 United Airlines machinists announced tentative agreements on $1.5 billion in wage and benefit concessions, giving United an important win in its effort to avoid a bankruptcy filing.
The International Assn. of Machinists was the only employee group not to have committed to its share of $5.8 billion in labor cutbacks, the centerpiece of United’s financial recovery plan. IAM members will vote Nov. 27 on the tentative agreements.
United hopes the cuts are steep enough to persuade the government to grant a $1.8-billion loan guarantee that it says it needs to stave off a Chapter 11 bankruptcy filing by year’s end.
Shares in United parent UAL Corp. fell 23 cents, or 7%, to $3.10 on the NYSE before the agreement was announced.
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