United Airlines' agreement in principle with its machinists union would allow the airline's machinists to become part of the multiemployer $6.4 billion IAM National Pension Fund rather than participate in a new defined contribution plan, said Dave Dimmer, United spokesman. The airline would terminate the existing pension plan for the machinists, who are part of the International Association of Machinists and Aerospace Workers.
United and the machinists reached the agreement Tuesday just before U.S. Bankruptcy Court Judge Eugene Wedoff was set to rule on terminating the union's existing contract. Mr. Wedoff scheduled a hearing for June 17 to consider the proposed agreement between the machinists and the carrier.
Joseph Tiberi, IAM spokesman, did not return a call by press time seeking comment.