The Machinists union initially had sought increases of 43 percent to US$36.63 an hour on top pay for mechanics and 28.5 percent to US$21.34 for cleaning workers.
The provisions for retroactive pay going back to July 2000 call for the top mechanics' rate to rise 13.5 percent to US$29.05 an hour and 9.9 percent to US$18.25 for cleaning workers. The retroactive increases will also apply for 2,500 mechanics and cleaning workers laid off after the Sept. 11 attacks.
"As soon as they get this raise they're going to be asked to give parts of it back," said Darryl Jenkins, director of the Aviation Institute at George Washington University. "I have a feeling that round two has already been fought."
The company's costs are going to go up, though its real problem has been revenue, said Michael Boyd, a consultant at Boyd Group in Evergreen, Colorado. United needs more people to fly at higher fares, he said.
The two sides agreed to an expedited negotiation process for the next contract for the mechanics and cleaning workers.
United and the Machinists still are in mediated talks on a new contract for 30,000 baggage handlers, reservation agents and airport workers, including some who were laid off. That contract also became open to change in July 2000.
UAL's shares rose US$0.28 to US$11.36 Friday and didn't trade yesterday because of the Presidents Day holiday in the US. The stock has declined 71 percent in the past year.
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