United Reach Labor Trade Agreement

11th Nov 2002

United Airlines (NYSE: UAL) today announced that it has reached a tentative agreement with the Association of Flight Attendants (AFA) on labor cost savings as a part of the company’s overall financial recovery plan.  The agreement has been approved by the AFA’s UAL Master Executive Council and is consistent with the framework agreed upon by the United Airlines Union Coalition and the company.  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 United’s flight attendants.

“United continues to make great progress toward implementing its financial recovery program,” said Glenn Tilton, United’s chairman, president and Chief Executive Officer.  “I want to thank the members of the AFA and United negotiating teams for literally working all day and all night over the last several days to reach this agreement.

“I have been impressed with the cooperation and dedication I have seen from our union leadership during these challenging times,” Tilton continued.  “We know that our timeline is getting shorter with each passing day, so we will urgently continue our negotiations with each remaining union on similar cost-cutting agreements in an effort to reach our common goal of preventing a Chapter 11 restructuring.”

Transport Workers Union (TWU)

After reaching a tentative agreement with the company on Saturday, Nov. 2, United’s meteorologists, represented by the Transport Workers Union (TWU) have voted to accept their contract changes, effective Dec. 1.  The terms of the agreement include an immediate 8 percent cut in pay and the abstention of all regularly scheduled pay increases.  United’s meteorologists will begin to receive annual pay increases of two percent in November 2004, bringing them back to their current pay levels in May 2007.  They also will receive stock options and profit sharing benefits commensurate with their pay cuts.


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.



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