HOUSTON, Oct. 21 (Bloomberg News) — Continental Airlines will give mechanics with 30 years or more of service $40,000 to retire by 2004 under the terms of a tentative contract reached with the workers' union. þþThe Teamsters, which represents about 3,000 mechanics at the airline, told members today that the agreement would increase wages for the top mechanics 13 percent, to $30.42 an hour, retroactive to Jan. 1 and would increase wages 23 percent, to $33, by Jan. 1, 2003. þþContinental and other airlines have sought to trim their work forces and reduce flights to adjust to a drop in air travel and revenue. Layoffs typically eliminate the lowest-paid workers at the bottom of seniority lists; incentives to retire help remove higher-paid senior workers.þþContinental shares rose 93 cents, to $6.33. The stock has declined 76 percent the last year. þþThe workers who want the retirement option would need to notify the company by July 1, the union said. The airline and the union said on Friday that the tentative contract was subject to a vote by union members, probably this month. þþþ
Source: NY Times
