NYTimes.com Article: United Says It Is Willing to Talk With Unions Past Deadline

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United Says It Is Willing to Talk With Unions Past Deadline

March 13, 2003
By BLOOMBERG NEWS






CHICAGO, March 12 (Bloomberg News) - United Airlines which
is in the midst of bankruptcy reorganization, said today
that it was willing to negotiate with its unions on worker
concessions beyond a March deadline.

United told its creditors' committee that it expected to
file for relief from labor contracts on Monday, though it
would keep negotiating beyond then if necessary.

The company also said it had $1 million in positive cash
flow in January.

United is trying to get $2.56 billion in annual wage,
benefit and work rule concessions to become a competitive,
profitable airline. The company expects to emerge from
bankruptcy by the middle of 2004, though it will
re-evaluate that goal after the labor situation is
resolved.

"May 1 is an important date for UAL because we must have
the labor cost reduction required to meet our
debtor-in-possession loan covenants in place at that time,"
a spokesman, Chris Brathwaite, said. "March 17 is simply a
technical deadline."
United met the terms of the loan covenant in December and
January, and it does not have sufficient data yet to
evaluate February, the company told creditors today.

The mid-March date is the date by which the company must
file a motion for relief from existing labor contracts
under bankruptcy law.

United and the unions said that they were still seeking to
renegotiate contracts before the time that the court could
allow the airline to impose terms.

The United Association of Flight Attendants union told its
members that a decision on the motion might not come for up
to seven weeks after it is filed. A hearing would follow
the motion within two to three weeks and then the
bankruptcy court could take up to another four weeks to
make its decision.

http://www.nytimes.com/2003/03/13/business/13UAL.html?ex=1048565149&ei=1&en=72a1c91d9a0a809b



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