NYTimes.com Article: Accord at United on Closing Plant

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Accord at United on Closing Plant

April 4, 2003
By BLOOMBERG NEWS






CHICAGO, April 3 - United Airlines and its machinists union
resolved a dispute today over plans to close an aircraft
maintenance center in Indianapolis by reaching agreements
on severance pay and transferring workers.

As a result, the International Association of Machinists,
the biggest union at United, said it had dropped a lawsuit
seeking to stop the closing. The union represents 1,148
mechanics at the Indiana center, where 468 workers were to
begin unpaid leave on March 25, and the rest on April 15.

Indianapolis workers will have the option of transferring
to other centers across the United States based on
seniority, a spokesman for the union, Joe Tiberi, said. An
airline spokesman, Jeff Green, declined to discuss the cost
of the agreement.

United, a unit of the UAL Corporation, has said the
shutdown would be temporary. The machinists union is
concerned that the move may be permanent if the airline
follows through with proposals made in contract talks.
United, which is based in Chicago, filed for Chapter 11
bankruptcy protection in December. It has said it needs to
reduce annual labor expenses by $2.56 billion and may need
to cut more because of the war in Iraq.

United and the union are still discussing whether the
Indianapolis center will eventually reopen, Mr. Tiberi
said.

http://www.nytimes.com/2003/04/04/business/04UNIT.html?ex=1050466595&ei=1&en=9525e1dc3edb4f3c



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