United Airlines mechanics approve contract

AP News
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Posted: Dec 05, 2016 7:17 PM

CHICAGO (AP) — Mechanics at United Airlines have approved a six-year labor deal, the latest in a string of pay-raising contracts in the now profitable industry.

The contract with the Teamsters union covers more than 9,000 employees at United Continental Holdings Inc. It covers employees of United and the former Continental Airlines; the two merged in 2010.

Few details were disclosed. The union said the contract is worth $1.7 billion more in pay and benefits than the workers' current deal.

Unions have pushed for pay raises now that airlines are making huge profits after losing billions and — in cases like United — going through bankruptcy protection in the previous decade.

Chicago-based United reported net income of $7.3 billion last year, although that was inflated by a one-time tax-related item. It earned $1.7 billion in the previous two years combined after losing $723 million in 2012.