United Airlines Reaches Tentative Deal with Teamsters Union (UAL)

United Airlines, subsidiary of United Continental Holdings Inc. (NYSE: UAL), has reached a tentative deal with the Teamsters Union, which covers about 5,500 mechanics.

The Chicago-based airline has not disclosed the details of the new tentative agreement. The agreement changes the terms of a deal, which were rejected earlier this year, according to Megan McCarthy, spokeswoman for the airline. The new agreement is expected to come up for a vote by the end of this year.

The deal is part of a two-step process. The first step is to get union contracts with United and Continental mechanics separately and then negotiate a joint deal. It may be recalled that United and Continental had merged last year. Continental Airlines mechanics, represented by the Teamsters, have already ratified their collective bargaining agreement last November.

According to Jim Keenan, Senior Vice President of Technical Operations at United Airlines, the agreement is an essential step toward aligning the airline’s mechanic employees and getting a joint agreement. The tentative agreement covers around 5,500 United mechanics and related employees throughout the U.S.

The union and the airline had agreed to a tentative deal in March this year. However, the deal was rejected after a union vote.

Meanwhile, United Continental also announced new international routes for both, United Airlines and Continental Airlines. The company said that both, United and Continental, will launch service on several new international routes in the first half of next year.

Jim Compton, Executive Vice President and Chief Revenue Officer at United Continental, said that since the merger last year, the new United’s unmatched global route network and U.S. hub structure have allowed the airline to offer its customers more flights to more places they want to go. Compton added that by adding new international routes, the airline continues to put the right aircraft in the right markets to serve its customer needs.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.