United Airlines caves to union demands, jacks up wages

United Airlines caves to union demands, jacks up wages

United Continental Holdings has announced that its battle with the union is over.

United Airlines will finally end its battle with its mechanics union after three years.

Now, the new proposal will come to a vote for 8,600 technicians across the country, and a deal has yet to be reached with the flight attendants, so there still may be more drama to come, according to a Bloomberg report.

It’s actually a big win for United, the second largest carrier in the world, and it certainly makes new Chief Executive Officer Oscar Munoz — who’s only been in his position for a month — look pretty good in the process, especially since he promised to bridge the divide between the union and management. Munoz is actually recovering from a heart attack currently and CEO Brett Hart is acting in his absence.

Hart praised the deal, saying according to the report: “Investing in our people is key to United’s long-term success, so I’m encouraged that we have reached this agreement with such an important part of our workforce.”

Negotiations between the union and United Continental Holdings began all the way back in November 2012.

Apparently, both sides issued proposals that would have covered wages, healthcare, scope and pension issues, but the two sides remained far apart. That apparently changed in the weeks that followed. Under the terms of the new deal, there will be pay increases, a signing bonus pool, and an early buyout offer. United’s stock rose 3.4 percent on the news.



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