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UAL Averts Mechanics Strike

Thu Mar 07, 2002 8:09 am

FT Extract

United Airlines averts walk-out by mechanics
By Julie Earle in New York
Published: March 6 2002 20:53 | Last Updated: March 6 2002 20:58

United Airlines, the second-largest US carrier, secured a contract with its mechanics that will avert a walk-out by about 12,800 employees on Thursday.

Analysts were watching the contract negotiations closely with a view to a credit rating downgrade. The mechanics' union had rejected a pay offer in February and overwhelmingly voted for strike action.

Wednesday's approval of the contract by the International Association of Machinists will avert a prolonged strike which ratings agency Standard & Poor's had warned could push the troubled carrier and its parent, UAL, over the edge.
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