United Airlines strike averted

United Airlines has joined the club of struggling carriers

United Airlines has narrowly averted a strike by its 12,800 mechanics and aircraft cleaners less than 36 hours before it was due to start.

The airline said it had decided to accept the terms suggested by the International Association of Machinists and Aerospace Workers (IAM) after four days of talks.

"Our negotiating team and United's labour committee of the board of directors have accepted... the IAM's proposal," said Jack Creighton, chairman and chief executive of United's parent company UAL.

"With the agreement, our customers can be confident that United will continue to operate without disruption."

The details of the agreement have not yet been released, but it is likely to involve pay rises of up to a third for many staff, with many receiving their first boost to basic pay for eight years.

It also ditches future concessions on wages and job security that the airline was seeking, and is likely to throw out a deferral of retroactive pay.

Deadline moved

The union's website said the agreement "fulfils the IAM¿s promise to negotiate an industry-leading contract ¿ one that recognizes the past sacrifice and current value of these employees".

Union negotiators said they recommended the deal unamnimously.

The strike deadline has now been moved back to 7 March to accommodate a ballot on the package two days earlier.

The last-ditch deal is unexpected. IAM members had already spent part of the weekend removing tool boxes and personal effects from the workplace in preparation for the strike, which was set to start at 0501 GMT on Wednesday.

And United had admitted that with the prospect of all its planes being stranded, bookings had begun to fall away as passengers presumably voted with their feet to avoid getting caught in the stoppage.

Turbulence ahead

United has suffered with the rest of the airline industry, both from overcapacity and from the slowdown which was exacerbated after 11 September last year.

Earlier in February UAL announced a full year net loss of $2.1bn (£1.49bn) for 2001, the worst in airline history.

The loss beats the $957m it lost in 1992, this year's $1.7bn loss at bigger rival AMR Corp, parent of American Airlines, and the $2bn loss at smaller competitor US Airways.

A strike could well have driven the airline over the edge and into bankruptcy.

But the agreement still leaves United in difficulties.

Its labour costs are among the highest in the business, and strike action was only averted in December by presidential intervention.