United Airlines machinists agree to concessions

CHICAGO -- The union representing 37,500 United Airlines machinists announced a tentative agreement Wednesday on $1.5 billion in wage and benefit concessions, giving United an important boost in its effort to stave off bankruptcy.

The machinists were the last employee group to agree to accept a share of the $5.8 billion in labor cutbacks that the airline was seeking.

The financially ailing airline hopes the cuts are steep enough to persuade the government to grant a $1.8 billion loan guarantee that United says it needs to avoid a Chapter 11 bankruptcy filing by year's end.

United and other major airlines have been suffering heavy losses, in part because of the downturn in travel since Sept. 11. In the aftermath of the attacks, the government enacted a loan program to rescue the industry.

The United mechanics, baggage handlers, reservations employees and other workers represented by the machinists union will vote Nov. 27 on the tentative agreements.