UAL Corp., parent of bankrupt United Airlines, has reached a tentative agreement with mechanics’ union in a struggle for saving costs for the carrier that filed for Chapter 11 protection.

"This agreement consensually achieves the cost savings United needs, while addressing AMFA’s concerns over pay, job security, benefits, and work rules," United said in a statement.

The company said it seeks all possible ways to exit Chapter 11 bankruptcy protection by the end of 2005, and considers labor agreements to be a good way out. United is now trying to wring $725 million annually from its labor force.

United is now in the process of negotiations with the International Association of Machinists and Aerospace Workers. The carrier has already come to an agreement with the Aircraft Mechanics Fraternal Association membership.

The agreement must first be ratified by the membership before it becomes valid.