UAL Corp., Chicago, and the International Association of Machinists and Aerospace Workers today agreed on a five-year collective bargaining agreement that includes transferring United Airlines' 20,000 baggage handlers, customer service representatives and other ground workers to the IAM's $6.4 billion multiemployer National Pension Fund, Washington, instead of into a new UAL 401(k) plan.
Joseph Tiberi, IAM spokesman, said the union will consider prior service at UAL when calculating benefits. Only new contributions by UAL, equivalent to what would have been paid into a company-sponsored 401(k) plan, will go into the union's fully funded national plan, he said.
United's IAM members will receive details of the agreement June 21, and voting will end July 22. Mr. Tiberi and David Dimmer, a UAL spokesman, both said terms of the agreement were not being disclosed until next week.
UAL and the union tentatively struck the agreement at the end of May, when both parties said it would save the airline about $175 million in wages and benefits.
Separately, U.S. Bankruptcy Court Judge Eugene Wedoff today granted a UAL request to extend until Sept. 1 the date it must file a reorganization plan, said Mr. Dimmer; the plan had been due by July 1.