United and IAM Reach Tentative Agreement On Labor Cost Savings

Business Wire, Nov 20, 2002

Business Editors

CHICAGO--(BUSINESS WIRE)--Nov. 20, 2002

United Airlines (NYSE:UAL) today announced that it has reached tentative agreements with the International Association of Machinists and Aerospace Workers District 141 and 141M on labor cost savings as a part of the company's overall financial recovery plan. The agreements have been approved by District 141 and 141M representatives and are consistent with the labor cost reductions called for in the company's business plan submitted to the Air Transportation Stabilization Board. The agreement is subject to approval by the Labor Committee of the UAL board of directors, as well as the board itself. In addition, it requires ratification by the IAM membership.

"This agreement offers further compelling evidence of United's ability to transform itself through collaboration among all work groups," said Glenn Tilton, United's chairman, president and chief executive officer. "The fact that all six union groups have reached tentative agreements is evidence of a new attitude and commitment which can translate into a competitive advantage for United Airlines."

Tilton continued, "And I want to thank the members of the IAM's and United's negotiating teams for all of their hard work. This is the last of the tentative agreements with our work force and underscores the significant progress we have made in recent weeks toward cutting costs. The IAM, along with our other unions, has stepped up to the challenge by cooperating in an unprecedented way to set the framework for a stronger, more competitive airline."

United operates nearly 1,800 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.united.com.