United Strikes Deals With Pilots, Mechanics

United Airlines, which is operating under bankruptcy protection, moved two steps closer to locking in labor savings crucial to its survival, reaching a tentative agreement with mechanics and cementing a final deal with pilots.

The deal with mechanics is particularly significant because the group, the sole holdout in previous talks and the last to sign on now, has been known for tough dealing.

The mechanics agreement, which must be ratified by union members, represents the final part of the overall $2.56 billion in cost cuts that United says it must have by May 1 to satisfy lenders.

Mechanics tentatively agreed to 13% pay cuts and work rule changes totaling about $349 million a year for six years, and pilots ratified a six-year deal that calls for $1.1 billion a year in wage cuts and contract changes.

From Reuters