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United Airlines reaches tentative agreement with workers

(Reuters) - United Continental Holdings Inc , the parent company of United Airlines, said it reached tentative agreements on wage increases and other matters with a union that represents fleet service and passenger service workers and storekeepers.

The agreements with the International Association of Machinists and Aerospace workers (IAM) will cover more than 28,000 United employees, the company said.

One of the biggest obstacles to the completion of the $3.17 billion merger of United Airlines and Continental Airlines had been the integration of two work forces with joint contracts.

Rival US Airways is expected to complete a merger with AMR Corp's American Airlines this week.

(Reporting by Tej Sapru in Bangalore)

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