United, Machinists Formalize Tentative Pact

United Airlines and its machinists union reached a tentative contract deal, formalizing an agreement in principle hammered out late last month that averted a threatened strike.

The carrier, a unit of UAL Corp., also was granted two more months by a bankruptcy judge to file its reorganization plan without competition from outside investment groups despite complaints that its reorganization was taking too long.

Members of the International Assn. of Machinists and Aerospace Workers, which represents 20,000 baggage handlers, customer service representatives and other ground workers, have a July 22 deadline to vote on the five-year contract.