UA strike threat...it ain't over.

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Union wants U.S. to declare impasse in UAL talks

By John Crawley

WASHINGTON, April 7 (Reuters) - Negotiators for 23,000 United Airlines
employees want mediators to declare an impasse this week in their contract
talks with the carrier so the union can start laying the groundwork for a
possible strike by ramp, customer service and other workers, union officials
said.

The company and negotiators for the International Association of Machinists
will meet with the National Mediation Board on Thursday in Washington for
the first time since talks broke off three weeks ago after a deadlock over
wages and other compensation.

The IAM will press the government to release it from meditation and begin a
30-day cooling-off period after which a strike date could be set. Union
members have authorized their leadership to call a strike, if necessary.


The machinists say, however, that the two sides are close enough to an
agreement that triggering a strike deadline could, in fact, be the key to
reaching an agreement.

"It's close enough to happen but that doesn't mean it will," said IAM
spokesman Frank Larkin. "We've been at this point almost forever. That's the
nature of airline negotiations without a deadline."

The federal Railway Labor Act, which governs airline contract talks, allows
negotiations to continue open-ended, even in mediation, until the threat of
a strike brings the dispute to a head. If mediators do not declare an
impasse, another round of talks could resume later this month, the union
said. The negotiations between United and the IAM District 141 Lodge have
been ongoing since 1999.

"There is a sense here that this could be resolved," Larkin said. "But
preparations for a strike are going forward nevertheless."

Strikes at other big airlines failed to materialize over the past year
because President George W. Bush followed through on a promise not to permit
them.

Bush intervened or threatened to do so in several cases last year and this
year. His actions, criticized by labor as an infringement of its collective
bargaining rights, blocked threatened walkouts at airlines or created
conditions that pushed feuding sides into contract agreements.

If an impasse is declared this week in the latest United dispute and the
White House intervened after 30 days, a strike could not take place before
July at the earliest. That is in the middle of the industry's critical
summer travel season.

Chicago-based United, a unit of UAL Corp. (UAL) and the world's
second-biggest airline, says it has put an industry leading package on the
table for its ramp workers, customer service agents, food service employees
and security guards.

While neither side would detail proposals, the union contends that the
carrier's latest proposal was not the best deal for everyone. That group of
workers has not had a raise in base pay since 1994.

Nevertheless, the company was hopeful the talks would progress and obstacles
could be overcome quickly.

"It's important for us to get this contract wrapped up," United spokesman
Joe Hopkins said without elaborating on the airline's strategy for doing so.
"We'll just have to see what the future brings."

United is coming off a bruising contract battle with its mechanics, also are
represented by the machinists union.

The White House intervened in December to prevent a threatened walkout, and
a special presidential board recommended terms that finally settled the
dispute in March.

The current talks have gone more smoothly than the long and bitter
negotiations with the mechanics.

The financially troubled airline is under enormous pressure to lower its
labor costs. United is expected to seek concessions from its unions this
year as it seeks to improve its financial condition after posting massive
losses. The company lost a record $2.1 billion in 2001.


©2002 Reuters Limited.

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