UAL Ground Workers OK Contract

United Airlines ground workers approved a labor agreement early Saturday that settles the carrier’s last unresolved contract and clears the way for talks on companywide wage concessions.

The pact calls for pay raises totaling 29% over four years for United’s 25,000 ramp workers, ticket and reservation agents, security guards and food-service employees.

Union leaders had unanimously recommended ratification.

The contract, hammered out last month, gives the ground workers their first raises since 1994.

United’s pilots, mechanics and aircraft cleaners already have received hefty raises during a turbulent two-year period for the airline. But the carrier wants them to give some back to help it cut costs and pull out of the worst financial troubles in its history.

Chief Executive Officer Jack Creighton has been involved in talks with union leaders to implement a financial recovery program that may include temporary pay cuts.

He is expected to convene more talks soon, this time including the International Assn. of Machinists and Aerospace Workers, which had refused to participate until the ground workers’ deal is ratified.

Union spokesman Frank Larkin said the union has agreed to meet with company officials once they have a proposal for wage concessions or other actions.

He said it was too early to say what moves might be necessary to help the struggling carrier.

Creighton has said he wants to nail down an agreement with United employees before retiring in the next few months.

Employees own 55% of the carrier and hold three board seats.

The airline has recently been losing $4 million to $5 million a day.