CHICAGO, June 21 (Reuters) - A tentative five-year labor deal for ground workers at United Airlines would cut employee pay by 3 percent to 5.5 percent and guarantee a company contribution to a multi-employer pension plan, according to details of the plan disclosed Tuesday. þþIf the deal is ratified by members of the International Association of Machinists and Aerospace Workers, it would save United, a unit of the UAL Corporation, $176 million a year.þþSeparately, the airline said that it was raising fares by 3 percent on most domestic and international flights as a result of rising oil prices. Sale fares and specialty contracts were not affected by the increase.þþþThe union recommended last week that its members ratify the contract, which would run from July 1 to the end of 2009. Voting will conclude by July 22.þþÿThe contract has to be measured by what was preserved as well as what was sacrificed,ÿ a union spokesman, Frank Larkin, said.þþThe machinists union represents 20,000 active United employees who work in baggage handling, public contact, security and other areas.þþAt the heart of the deal is participation in the union's pension plan, a fully funded plan covering 65,000 beneficiaries at 1,700 United States companies. Issues related to the workers' pension plans had been a key sticking point in contract negotiations. þþIf the contract is approved, employees may join the pension plan starting March 1, 2006. At that time, United would begin making contributions equal to 4 percent of employee earnings. The contribution rises to 5 percent in 2007, 6 percent in 2008 and 6.5 percent in 2009. The tentative agreement cuts workers wages, reduces the number of paid holidays to eight from 10, reduces vacation time and increases reliance on part-time employees. It also reduces pay for sick leave. þþMr. Larkin said that the new contract featured no changes to workers' health and dental plansþ
Source: NY Times
