NYTimes.com Article: Unions Vow to Press Fight for Aid Reconsideration

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Unions Vow to Press Fight for Aid Reconsideration

December 6, 2002
By MATT RICHTEL and STEVEN GREENHOUSE






SAN FRANCISCO, Dec. 5 - United Airlines' major unions urged
the government today to reconsider its rejection of the
airline's loan guarantee application and vowed to take the
fight to Congress and President Bush.

Two of those unions, the machinists' and the flight
attendants', also indicated that they might consider
further concessions, but only with a promise that those
changes would keep the airline, the second-largest in the
world, out of bankruptcy.

All three of United's major unions - representing pilots,
machinists and flight attendants - met in person and by
teleconference tonight to plot strategy, but they said
beforehand that they would base their next move on guidance
from United's management and the Air Transportation
Stabilization Board.

"We want the A.T.S.B. to reconsider," said Robert Roach
Jr., general vice president for transportation at the
International Association of Machinists and Aerospace
Workers, United's largest union. "We want guarantees from
the A.T.S.B. about what it would take to have the loan
guarantee approved."

Mr. Roach and other union leaders said they had been in
contact with their allies in Congress in hopes of spurring
legislation that would override the transportation board's
decision.

But there may not be enough time to avert a bankruptcy
filing. United may file for bankruptcy by Monday, according
to people briefed on the company's debt negotiations.

The scramble to plot a new direction came after unions for
the pilots, flight attendants and most of the machinists
reached a tentative agreement for $5.2 billion in
concessions, contingent on approval by all rank-and-file
members, that they felt would be enough to secure the
government's loan guarantee. The government's decision was
met by surprise in some quarters, and disappointment.

Edward Wytkind, executive director of the A.F.L.-C.I.O.'s
transportation department, said the board had violated
Congressional intent by failing to provide short-term
financial stability. "We will call on Congress to do
something about it - that is, if they're willing to take on
this White House," Mr. Wytkind said.

But down on the tarmac, in the hangars, at the ticket
counters and on the planes, the feeling among employees was
less angry and more uncertain. Some of United's more than
50,000 union employees said they did not see a clear path
for the airline's future or their continued employment.

The board's decision also pushed one issue into the
background: whether the mechanics would agree to all the
pay concessions they had been asked for to generate the
savings United had promised the board. After rejecting the
concessions last week, the mechanics had been set to vote
on slightly revised ones today, but they suspended the vote
after the decision by the air transportation board.

"We were being blamed last week" for scuttling the
airline's prospects for a loan, said Joseph G. Prisco, 41,
an aircraft maintenance technician in San Francisco. Now,
he said: "Everybody is polite to each other. It's kind of
surreal at work. It's out of our hands, and it wasn't our
fault."

Instead, union officials blame the air transportation
board, which they said had been vague in outlining what
United must do to secure loan guarantees. The unions said
they would not rule out further concessions - if such
sacrifices would ensure financial backing. "Everybody now
is focused on the survival of the carrier," Mr. Roach said.


But workers may have little choice. If United files for
bankruptcy, there is a strong possibility that it will ask
a bankruptcy judge to abrogate part of its labor contracts
so it can cut wages and benefits.

David Gregory, a labor expert at the St. John's University
School of Law, said the unions might consider additional
concessions now to stave off such an eventuality.

"The gun is now to their head," Mr. Gregory said. "The
entire enterprise, not only United, but the unions, have
walked not only to the precipice - they've stepped over
it."

In fact, the machinists' union said yesterday that it had
retained a law firm in New York that is expert in
bankruptcy filings.

United's unions met this evening in a hastily planned
gathering to discuss pressing Congress and starting a
public relations drive aimed at casting the White House as
the villain. "It's an attempt to exhaust all of our options
and look for any options of restructuring outside of
court," said Sara Dela Cruz, a spokeswoman for the flight
attendants' association.

Mr. Wytkind said: "The Bush White House has set the
nation's airlines into a potential financial tailspin, and
from what we can tell, they're not willing to do anything
about that. Meanwhile, tens of thousands of workers and
passengers will be hurt."

Mr. Roach of the machinists' union said: "Everybody is
shocked and concerned that the federal government would not
be there for American workers as they are for rebuilding
Afghanistan. It's in the national security interest to
protect a transportation company like United."

But while some union leaders blamed the Bush
administration, some rank-and-file members said
responsibility for United's troubles lay with the company.

The board's decision to reject the loan application "was
bad for United, but it may have been the right decision,"
said Robert F. Rendler, 38, a mechanic for 17 years who is
based in San Francisco and said he was among the mechanics
who had planned to vote against the concessions. He said
the union had not done a good job defending the interests
of its members.

"I don't know who I fear more, the bankruptcy judge or my
union," he said.

Mr. Rendler said he was already preparing himself for the
possibility that he would have to look for another job.

Other employees were almost fatalistic about United's
prospects. "We are all just really, really depressed.
People are sad. People are very angry," said one
59-year-old veteran flight attendant who is based in San
Francisco but lives in Denver. She declined to give her
name.

"That was the way people felt yesterday before the news,"
she added. "Today it's worse."

Susan Tonon, a 16-year employee of United and a nonunion
worker based in Elk Grove, Ill., said employees would have
to give up something. "I want to see us saved as a
company," she said. "We may need wage concessions by
everyone. It's going to have to happen."

http://www.nytimes.com/2002/12/06/business/06WORK.html?ex=1040189641&ei=1&en=aedc4cd88a6d1bbd



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