UAL Corp, parent of bankrupt United Airlines, said on May 16, it has reached a tentative labour agreement with the union representing its mechanics. The No 2 US airline is restructuring in an attempt to wring $725 million annually from its labour force to exit Chapter 11 bankruptcy protection by the end of the year. The deal must be ratified by the Aircraft Mechanics Fraternal Association membership for it to be valid. United is still in labour negotiations with the International Association of Machinists and Aerospace Workers. United went to trial last week to seek permission to void collective bargaining deals with the two unions in a drive to win cost savings. On Monday UAL's Chief, said there were several options available to the airline in case of a settlement, including pursuing a verdict from the judge.
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