United makes deal with Teamsters

By Dow Jones Newswires
Posted March 18 at 5:04 p.m.

United Continental Holdings Inc.’s United Airlines and the Teamsters Union have reached a tentative agreement on a contract for 5,500 U.S. aircraft technicians and related employees.

The pact follows Continental reaching a tentative agreement with its own mechanics, also represented by the Teamsters, shortly before it closed on its merger with United.

Eventually, the combined company’s employees with the same job titles will end up with common labor agreements. The airlines are operating independently under the ownership of a holding company while they seek Federal Aviation Administration approval of a single operating certificate, which will allow them to mix their aircraft and crews and schedule them as one.

Terms of the pact were not disclosed.

“This contract makes significant gains in a number of key area where our members felt they had lost ground in previous contracts,” Teamsters General President James P. Hoffa said in a statement.

United Continental shares recently traded at $23.33, up 5.2 percent. The stock is up about 20 percent this year.

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