This could be a good thing. That means when/if the strike is averted, we will see a mega-sale to fill up the planes, like AA did a couple years ago when their FA's almost walked out. Jim On Fri, 15 Feb 2002, W Wilson wrote: > By Kathy Fieweger > > ELK GROVE VILLAGE, Ill., Feb 15 (Reuters) - United Airlines on Friday said > passengers began looking elsewhere for flights in anticipation of a strike > set for next week after 13,000 mechanics and cleaners rejected a contract > offer. > > With a strike deadline looming in five days at the No. 2 U.S. carrier, talks > resumed Friday afternoon. Earlier this week, mechanics rejected an offer > from United that included a 37 percent pay increase for the most senior > workers, but also sought unspecified future wage concessions and deferred > retroactive pay, among other provisions. > > "We clearly intend to avoid a strike," Chief Financial Officer Jake Brace > told Reuters in an interview at United's headquarters in Elk Grove Village, > a suburb of Chicago. "We are seeing a lower share of bookings than we have > been seeing." > > > Brace, a United Airlines veteran, is part of the negotiating team trying to > hammer out an agreement after members of the International Association of > Mechanics and Aerospace Workers District Lodge 141-M on Tuesday rejected the > first contract offer from United, a unit of UAL Corp. (UAL), since > negotiations began two years ago. > > The union was unhappy with the recommendation of a presidential emergency > board that mechanics defer retroactive pay. The machinists said the contract > contained no job security provisions and they rejected a proposed blueprint > for possible wage concessions. > > Brace declined to speculate on various analysts' comments that a mechanics > strike could force the airline into filing for bankruptcy protection. United > posted a net loss of $2.1 billion in 2001, an industry record. > > "We still have access to the capital markets, we still have a lot of > collateral in both aircraft and non-aircraft," said Brace, who conceded > morale at the airline is not high. "It's (morale) OK. I think that they > understand that the situation we're in is difficult." > > The raises would have been the workers' first base-pay hikes in eight years. > > Sen. Richard Durbin, an Illinois Democrat, late Friday told Reuters he was > getting a good sense from both the union and UAL Chief Executive Jack > Creighton that an agreement could be reached. "I'm getting positive feelings > from both sides," Durbin said in a phone interview. "The threat of a strike > has taken its toll on United." He made an offer to both parties in writing > this week to personally help broker a deal. > > REASSURING PASSENGERS > > A separate bargaining unit of the IAM representing ground workers, including > passenger service, ramp and store employees, is also negotiating on a > contract under the direction of the National Mediation Board. > > In 1994, machinist union members, like pilots, gave pay cuts in return for a > stake in the airline through an employee stock ownership plan. The IAM is > unhappy that the airline's latest offer includes future wage concessions > from all employee groups to help restore financial stability. > > The mechanics last struck United in 1979. During the summer 2000, pilots > staged a work-to-rule slowdown that forced flight cancellations and left > United with a sullied reputation among travelers. Subsequently, pilots > represented by the Air Line Pilots Association won an industry-leading > contract. > > Meanwhile, United is seeking to reassure passengers, sending electronic mail > this week to frequent flyers, saying it was "doing everything we can to > reach an agreement and avoid a strike." > > Mechanics had authorized a strike in December, but the Bush administration > blocked it before the busy holiday travel season by appointing a special > board. > > The board recommended pay raises even though United said it could not afford > them in the wake of the Sept. 11 attacks that crushed airline travel. > > UNION SAYS DEADLINE REAL > > Brace said the retroactive pay portion of new contracts would require about > $400 million in cash for both units of the IAM to be paid. The airline's > cash balance at the end of 2001 was $2.6 billion. > > Both the union and United have said if progress was made in talks, another > contract vote could be scheduled for mid-March. > > But union spokesman Frank Larkin called the strike deadline of Wednesday, > 12:01 a.m. EST (0501 GMT) very real. > > "There are five days remaining, and in airline negotiations that constitutes > an eternity," Larkin said. "Everyone recognizes that the (special) board did > serve some purpose in providing a place for the negotiations to take off > from." > > The White House can no longer intervene, but Congress could pass a law to > extend the deadline or impose a settlement. Labor has warned Washington in > plain terms not to get involved. Before recessing until Feb. 25, lawmakers > acknowledged the delicacy of the talks and urged both sides to settle. > > "My hope is that the parties can work out any differences and not seek > congressional action," said Sen. Ernest Hollings, a South Carolina Democrat > and chairman of the Senate Commerce Committee. "No one wants a strike or a > shutdown, but Congress is not the place to settle this dispute right now." > > At the very least, Congress would wait until after its recess before > considering intervening in any strike. United also hopes to avoid further > government involvement. > > UAL shares were trading near lows set immediately after the Sept. 11 > attacks, when two of their jets were hijacked and crashed. The stock added > 28 cents to $11.36 on Friday on the New York Stock Exchange. >