The next step to the beginning of the end of UAL? Walter DCA ----- Original Message ----- From: "W Wilson" <wlw-jr@att.net> To: <AIRLINE@LISTSERV.CUNY.EDU> > By John Crawley > > WASHINGTON, Feb 11 (Reuters) - Mechanics at United Airlines (UAL) could vote > on Tuesday to reject a contract offer based on recommendations of a > presidential emergency board and, if so, would later vote to strike, their > union's president said. > > "My sentiment tells me they will reject it," Tom Buffenbarger told reporters > on Monday, referring to the 15,000 mechanics and related workers who will > vote on the plan that would give them pay raises of up to 37 percent. > > The mechanics have not had a raise since 1994. > > Buffenbarger said the vote could be extremely close. But he was clear about > what would happen if the company's proposal failed. > > "If they reject the contract, they will vote to strike," Buffenbarger said. > The earliest a strike could occur would be on Feb. 20. > > > The airline would not predict how the mechanics would vote. > > "We're not going to jump ahead of ourselves. We're going to see what happens > tomorrow," United spokeswoman Susana Leyva said. > > Buffenbarger also said there would "be hell to pay" if Congress intervened > in the labor organization's dispute with United by extending the deadline > for a settlement or imposing contract terms. > > "That is not a threat. That's a promise," Buffenbarger told a news > conference. > > He was not specific about what action the International Association of > Machinists would take, but suggested it would work to rule if terms were > imposed. > > Congress has never acted on an airline contract dispute, and Buffenbarger > said he thought lawmakers would not interfere this time if asked to do so by > the White House. > > A presidential emergency board recommended last month that the No. 2 > carrier, a unit of UAL Corp. (UAL), boost pay for the mechanics to bring > into line with other industry leaders. That would be roughly $35.14 per hour > for the most-senior mechanics, up from $25.60. > > But the true value of the increase would be delayed if the financially > struggling airline sought wage concessions across the board to reduce costs. > > United posted a staggering net loss of $2.1 billion in the fourth quarter of > 2001 as it struggled with declining traffic due to the Sept. 11 attacks and > the recession. > > Other airlines also have posted huge losses, but there have been signs of > recovery recently with the gradual return of business and savings from deep > cost cutting in recent months. > > The union is unhappy with an emergency board recommendation to defer > retroactive pay for mechanics and with proposals on retirement benefits. The > machinists also say the plan contains no job security provisions and they > reject the proposal's blueprint for wage concessions. > > Buffenbarger signaled the union was willing to do its part in any giveback > plan to save the airline from potential bankruptcy, but vigorously rejected > the government writing that formula into its contract recommendation. > > The airline's contract proposal could be approved with a simple majority of > "yes" votes nationwide. A strike would need two-thirds support, and > Buffenbarger said it would pass easily. > > President George W. Bush appointed the emergency board in December to > resolve the contract dispute at United. Before then, the union had voted > overwhelmingly to strike. But the White House intervention delayed any > walkout for 60 days.