United to Offer 37% Raise to Mechanics

United Airlines parent UAL Corp. will accept the recommendations of a presidential panel calling on the second-largest carrier to increase mechanics’ pay by 37.3%, company spokesman Joe Hopkins said.

A tentative contract agreement based on the recommendations will be sent to the carrier’s 10,600 mechanics for a vote, according to their union, the International Assn. of Machinists and Aerospace Workers. The union hasn’t decided whether to endorse the package.

Chicago-based UAL slid $1.55, or 9.7%, to $14.45 on the New York Stock Exchange. The company disclosed its decision after the close of trading.