United pilots' union OKs contract as airline struggles its way through bankruptcy

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United pilots' union OKs contract as airline struggles its way through=20
bankruptcy

CHICAGO (AP) =97 United Airlines' pilots union tentatively approved a=20
long-term labor agreement Thursday that it said should allow the carrier to=
=20
complete its bankruptcy reorganization. If ratified by the company's more=20
than 8,000 pilots, the contract would be a huge step in United's effort to=
=20
slash costs and emerge from bankruptcy court as planned next year. Terms of=
=20
the contract were not disclosed. United, which also is negotiating with its=
=20
machinists and flight attendants unions, had no immediate statement. Paul=20
Whiteford, chairman of the United branch of the Air Line Pilots=20
Association, said the agreement should "help transform United into a more=20
effective competitor against both low-cost carriers and other network=20
carriers." The ratification vote is to be completed by April 11. United had=
=20
asked its pilots to provide the biggest share of its $2.56 billion in=20
proposed annual labor savings through 2008 =97 $1.1 billion in lower wages=
=20
and benefits and revised productivity rules. The pilots strongly opposed=20
the company's proposal to create a separate, low-fare carrier, concerned=20
about the impact on wages, benefits and seniority. But the company has a=20
strong bargaining advantage in bankruptcy court and has filed a motion to=20
have all its labor contracts voided and replaced with its own terms if no=20
long-term agreements are in place by May 1.United lost $3.2 billion last=20
year and made the largest bankruptcy filing in aviation history on Dec.=20
9.Shares in United parent UAL Corp. were unchanged at 84 cents in afternoon=
=20
trading on the New York Stock Exchange.


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