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Non-Tech : Alaska Air (ALK)
ALK 40.70-2.6%Oct 30 3:59 PM EDT

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From: Kenneth Kirk6/17/2005 1:11:05 PM
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Alaska Airlines reaches tentative labor deal
TECHNICIANS: Four-year contract praised by union leader and airline executive.

The Associated Press

Published: June 17th, 2005
Last Modified: June 17th, 2005 at 04:39 AM

SEATTLE -- Alaska Airlines has reached a tentative agreement on a four-year contract with its 700 aircraft technicians, the carrier and the union said Thursday.

Terms of the deal, subject to union approval, were not disclosed.

Louie Key, regional director for the Aircraft Mechanics Fraternal Association, said he was pleased with the proposed pact.

In a statement released by the airline, he called it "a contract that provides job security language and wage increases that are unique in the current industry environment."

Bill Ayer, CEO of the Seattle-based airline, also praised the deal.

"We appreciate the dedication and professionalism of our aircraft technicians during recent challenging times and are grateful to the union leadership for working collaboratively with us to achieve this long-term, market-based agreement that is a win for both parties," Ayer said.

Last month, Alaska Airlines laid off nearly 500 baggage handlers and other ramp workers at Seattle-Tacoma International Airport, saying it needed to trim costs amid rising fuel prices and fierce competition from low-cost carriers.

A federal judge has since ruled that the company had the right to outsource the work to a subcontractor.

The same day as the ramp-worker layoffs, Alaska's pilots union sued the airline, challenging an arbitrated contract that cut pay 26 percent on average. In late May, the airline and union settled the dispute with a contract that included smaller pay cuts.

The Aircraft Mechanics Fraternal Association, which represents Alaska Airlines aircraft technicians in Washington, Oregon, Alaska, California and Arizona, started negotiating with the airline last fall.

The union plans to schedule a ratification vote once it distributes the proposed agreement for members to review, Key said. The union's leadership makes no formal recommendations on approving or rejecting contracts, he noted.
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