The International Association of Machinists & Aerospace Workers (IAM) and United Airlines have arrived at a tentative agreement on new contracts that will affect almost 30,000 employees represented by the union.
There are a total of seven agreements arrived at by the two parties and the terms will run up to 2021. According to the union, these contracts call for almost 30 percent in wage hikes during the deal's term and an additional $100 million in lump sum payments.
But the Chicago-based airline company said that the agreements have to be ratified by the union-represented employees.
If the IAM union members eventually ratify the agreements, they will cover call center employees, baggage handlers, storekeepers, central load planners, security officers, maintenance instructors, customer service agents and other workers connected with United Airlines up to 2012.
"As I visit our airport locations I'm always impressed with the passion and professionalism of our IAM-represented team," said Oscar Munoz, United's president and chief executive officer, in a statement.
"They take great care of our customers and each other every day, and we are excited to reach this agreement," he added.
The union and the Chicago-based airline company had to spend four months of negotiations before they were able to arrive at mutually beneficial contract terms. According to the company, they are ahead by almost 2 and one half years of their amendable dates.
The union members will have their chance to vote on the contract on April 15.
United Airlines has been struggling to finalize joint contracts with its maintenance workers and flight attendants following the carrier's 2010 merger with Continental which affected the morale of its employees.
With the seven agreements and its eventual ratification by IAM members, the airline company hopes to focus its energies on strengthening the company and perhaps building its fleet and expanding its network.
