This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx Machinists' Union Sues United Over Layoffs March 27, 2003 By MICHELINE MAYNARD The machinists' union filed suit yesterday against United Airlines to block the layoffs of 1,148 mechanics at the Indianapolis maintenance base, contending that United had used the war in Iraq as an excuse for cutting its operations. United maintains that the layoffs are legal under its union contracts, which allow employees to be furloughed without pay in the case of an emergency, like a war. The airline did not comment on the suit. A hearing on the suit was scheduled for April 9 in United States District Court in Indianapolis. United notified the International Association of Machinists and Aerospace Workers last week that it planned to place the workers on "authorized no-pay status." They would receive benefits and keep their seniority but not receive pay. United filed for Chapter 11 bankruptcy protection in December. It laid off the first 458 mechanics in Indianapolis on Tuesday, with the remaining layoffs scheduled for April 15. The first group would return to work in June, while the others are not scheduled to return until August. The action came as United and five of its labor unions are engaged in talks on $2.56 billion in concessions that the airline says are necessary for it to keep flying. It has asked a federal bankruptcy court for permission to set aside its labor contracts and impose the cuts, if it cannot reach agreement with its unions. A hearing on that motion is set for April 14 in Chicago. "United's action is especially outrageous, considering we are in a critical stage of negotiations," said Scotty Ford, president of District 141-M of the machinists' union, which represents the mechanics. It was the first such suit resulting from an airline's actions in the wake of the war. Over the last week, domestic airlines have announced more than 10,000 layoffs and cut their schedules by about 10 percent. The Air Transport Association, the trade group for the airlines, said yesterday that it expected domestic travel to decline 20 percent and international travel to drop 40 percent in the near future, given the recent rate of bookings. Frederic Brace III, United's chief financial officer, said yesterday that the war would pose "severe challenges" for income and cash flow industrywide. Still, some analysts say the industry's cutbacks are related more to the weak economy than the war. The suit came as United said it had easily met the first set of requirements under $1.5 billion in debtor-in-possession financing that it obtained when it filed for bankruptcy. http://www.nytimes.com/2003/03/27/business/27UNIT.html?ex=1049793039&ei=1&en=865068ba7f936b00 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company