Two International Association of Machinists locals became the latest of United Airlines' major employee groups to agree tentatively to wage and benefit concessions aimed at helping the company avoid a bankruptcy filing (see WIT for Nov. 11, 2002). United management has said the concessions are necessary to qualify for $2 billion in loans---$1.8 billion of it federally secured---from the for Air Transportation Stabilization Board (see WIT for Oct. 22, 2002). Part of a total $5.8 billion in labor cost savings over the next five-and-a-half-years agreed to by the five unions, the $1.5 billion in concessions from the IAM cover 37,500 members employed by United as baggage handlers and reservation agents, and leaves IAM represented mechanics as the last group to ratify on agreement.
See "United machinists agree to1.5 billion in concessions", DAVE CARPENTER, Chicago Tribune, November 19, 2002