NYTimes.com Article: United Unions to Offer Concessions

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United Unions to Offer Concessions

September 14, 2002
By EDWARD WONG






The unions at United Airlines said yesterday that they
would offer a proposal for concessions to the carrier late
next week to help it obtain a federal loan guarantee.

The unions conveyed their intentions in a letter sent
yesterday afternoon to Glenn F. Tilton, the chief executive
of UAL, the carrier's parent. United said it was encouraged
by its conversations with the unions, even though it would
not have concession agreements by Monday, which it had set
as a deadline.

Mr. Tilton's predecessor, John W. Creighton Jr., set that
deadline last month, when he said he wanted $1.5 billion in
annual concessions over six years from United's workers to
avoid bankruptcy. But the unions have called that figure
excessive. They quickly formed a coalition to come up with
a counteroffer.

Mr. Creighton had said the agreements were needed by Monday
in order to update a business plan that is part of an
application to the federal government for a $1.8 billion
guarantee for $2 billion in private loans. The Air
Transportation Stabilization Board, which administers the
loan guarantee program, wants United to obtain deeper
concessions from workers and suppliers to ensure that the
carrier can repay the loan.

"At this point in our process, we intend to provide the
company with an alternative framework by approximately
Sept. 19, 2002," the letter to Mr. Tilton said. "We are
confident that the alternative framework will enable the
company to provide the A.T.S.B. with supplemental materials
in support of the company's pending application," it said,
"and trust that you will take steps to ensure that the
company can file such materials after Sept. 16."

Joe Tiberi, a spokesman for the International Association
of Machinists and Aerospace Workers, which represents
35,000 employees at United, said the unions had not yet
completed their proposal. The financial advisers for each
of the unions were having regular meetings, but the union
leaders have not set a date to meet, Mr. Tiberi said.


http://www.nytimes.com/2002/09/14/business/14AIR.html?ex=1033023927&ei=1&en=e7ecc02849bfaf48



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