NYTimes.com Article: United Airlines Mechanics' Strike Is Blocked by Bush

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United Airlines Mechanics' Strike Is Blocked by Bush

December 21, 2001

By LAURENCE ZUCKERMAN




President Bush blocked a strike yesterday at United
Airlines, the second time this year that the White House
has intervened to prevent a walkout at a large carrier.

Mr. Bush signed an executive order creating a three-member
emergency board responsible for studying the contract
dispute between United Airlines and its mechanics and
making a settlement recommendation.

The appointment of the board bars a strike for 60 days by
the International Association of Machinists and Aerospace
Workers, which represents 13,000 mechanics at United, the
nation's second-largest carrier after American Airlines.
Had the White House not acted, United workers would have
been free to walk out beginning today, effectively shutting
down the airline right before the Christmas and New Year's
holidays.

The move had been expected for weeks because of the
precarious financial condition of the airline industry and
the weak economy and because of the prospect of a serious
disruption during a peak travel period.

The machinists union, which is a member of the
A.F.L.-C.I.O., lashed out at the White House, accusing the
Bush administration of "declaring war" on American workers.


"The right to win better wages and working conditions came
at great cost to workers in this country and will not be
given up or taken away without a fight," R. Thomas
Buffenbarger, the president of the union, said in a
statement.

United said that it had met with union leaders in
Washington yesterday and agreed to continue negotiations.
"We all recognize that the very unusual circumstances in
our industry have made contract negotiations much more
challenging than usual," the airline said in a statement.

They are especially challenging at United, where a majority
of the parent company, the UAL Corporation (news/quote), is
owned by employees, including a large stake held by the
machinists.

The union agreed to wage concessions in 1994 in exchange
for its stake in the company. After returning to 1994 wage
levels, the mechanics were poised to receive a large pay
increase in line with a generous new contracts signed
earlier this year by mechanics at American Airlines.

But United lost nearly $2 billion so far this year because
of the weak economy and the terrorist attacks on Sept. 11
that crashed two of its jets.

John W. Creighton Jr., the former paper company executive
who took over as chief executive in October after his
predecessor was forced to resign, is now seeking
concessions from all employees to stem the losses.

The airline acknowledges that United mechanics are now paid
roughly one-third less an hour than their counterparts at
American. The union is also upset because United's pilots
succeeded in negotiating a generous new contract last
August.

But giving mechanics any pay increase is difficult at a
time when United is receiving $800 million in direct
government assistance and may have to apply for a federally
backed loan.

The airline and the union are struggling to come up with a
formula that would somehow satisfy the workers' demand for
a raise without raising United's costs. "To date, we are
not asking for concessions from the '94 rates," William P.
Hobgood, UAL's senior vice president for people, said in an
interview.

The discussions are further complicated by the fact that a
rival union hoping to win the right to represent United's
mechanics is waiting to seize on any perceived failure by
the machinists.

Mr. Bush's appointees to the emergency board are three
experienced labor arbitrators. Under the Railway Labor Act,
which governs labor relations in the airline industry,
Congress has the right to intervene if a settlement is not
reached in 60 days. It could extend the strike moratorium
or impose the emergency board's proposed settlement.

Mr. Bush has been more aggressive about blocking airline
strikes than any president since Lyndon B. Johnson. In
March, he appointed an emergency board to prevent a walkout
by mechanics at Northwest Airlines (news/quote). The two
sides reached a settlement before the board made its
recommendation.

The White House was poised to intervene again in April,
when pilots at Delta Air Lines (news/quote) were
threatening to shut down the airline. But the two sides
reached an agreement before the strike deadline.

Unions accuse the White House of removing the pressure on
management to settle. But airline executives say that
government intervention only rights the balance because
airline strikes are so expensive that management has no
choice but to give in to the workers' demands.

http://www.nytimes.com/2001/12/21/business/21AIR.html?ex=1009965503&ei=1&en=2ddba633e04ecad3



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