NYTimes.com Article: Prediction of Failure for Airline Contract

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Prediction of Failure for Airline Contract

February 12, 2002

By BLOOMBERG NEWS




WASHINGTON, Feb. 11 (Bloomberg News) - Mechanics with
United Airlines will probably reject a contract recommended
by a presidential board that fails to guarantee pay and
benefits, their union leader said today.

The union very likely will turn the measure down when it
votes on it on Tuesday, Thomas Buffenbarger, president of
the International Association of Machinists and Aerospace
Workers, told reporters at a briefing. The board, which was
appointed by President Bush, wants the union to consider
returning some of its gains later to help the airline, the
operating unit of the UAL Corporation (news/quote), recover
from a record loss last year after the recession and Sept.
11 attacks reduced travel, he said.

A rejection of the contract by the 12,800 mechanics and
cleaners would give the airline and machinists a week to
reach another agreement before workers would become free to
strike on Feb. 20, assuming no further government
intervention.

"If it doesn't pass, we're going to get right back together
with the I.A.M. and work it through with them," United's
chief financial officer, Jake Brace, told investors at a
Goldman, Sachs & Company conference in Miami.

The presidential panel recommended a 37 percent raise in
top pay for mechanics this year, a 13.5 percent increase
for the past two years, to be paid later, and other
increases of 3.9 percent next year and 2.8 percent in 2004.


http://www.nytimes.com/2002/02/12/business/12UAL.html?ex=1014530326&ei=1&en=dfcb033eb5b3e8d7



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