United reaches another labor pact, seeks mechanics' deal CHICAGO (AP) =97 Using the leverage of a looming bankruptcy-court deadline,= =20 United Airlines has secured the latest in a series of concessionary labor=20 agreements with its unions. The union representing baggage handlers and=20 public contact workers became the largest group yet to come to terms,=20 giving initial approval Tuesday to contracts that would save the bankrupt=20 carrier $2.6 billion over six years. That leaves United needing to conclude= =20 negotiations with only its mechanics union in order to achieve the=20 austerity cutbacks it seeks, although the mechanics have historically been= =20 the toughest group to bargain with. Two weeks before United's December=20 bankruptcy filing, they were the only union to reject wage concessions as=20 part of United's last-ditch bid to avoid bankruptcy. With the industry in=20 crisis and United moving to have a bankruptcy judge void contracts and=20 impose its own tough terms on May 1, the airline has made swift progress=20 recently toward labor agreements aiding its cause. Airline analyst Ray=20 Neidl said United is progressing in bankruptcy and should be able to avoid= =20 liquidation "unless something really terrible happens with the economy or=20 terrorism or Iraq." "They're making slow progress," said Neidl, of New York-based Blaylock &=20 Partners. "My best guess is they get everybody on board and ultimately get= =20 an approval vote, because they (the unions) realize the alternative is the= =20 court mandating the cuts, which would be even deeper." CEO Glenn Tilton=20 said the accords announced Tuesday, which still need approval by the=20 executive board of Machinists' union District 141 and its 23,000 members,=20 are "another essential step forward" for a carrier that lost $3.2 billion=20 last year. "These are difficult economic times, especially for those of us= =20 in the airline industry," Tilton said. "The IAM District 141 is showing=20 true leadership by taking on a fair share of the sacrifice that is=20 necessary to put United back on firm financial footing." United is intent=20 on reducing its labor expenses by $2.56 billion a year through 2008 so it=20 can better compete with lower-cost airlines. The machinists' negotiators=20 indicated they had little choice but to swallow undesirable terms, facing=20 the likelihood the bankruptcy court would impose United's terms in three=20 weeks otherwise. Like United's pilots, flight attendants, dispatchers and=20 meteorologists, the machinists will be asked to endure double-digit pay=20 cuts and other givebacks in order to boost the ailing airline's prospects=20 for recovery. The agreements call for a 13% reduction in hourly wages, a 20% employee=20 co-payment toward the cost of the traditional health insurance plan and=20 work rules changes to allow greater use of part-time employees. Total cost= =20 savings from pay, benefit and work-rule changes are expected to reach $445= =20 million annually, United and the International Association of Machinists=20 and Aerospace Workers said. "We were determined to prevent the worst=20 effects of bankruptcy from being unilaterally imposed on our members," said= =20 chief negotiator Randy Canale, president of the union group. "A consensual= =20 recovery plan is the best way to rebuild United while preventing a court=20 ordered 'cure' from bringing far more painful terms for IAM members and=20 their families." A ratification vote is expected to take up to three weeks. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.carstt.com TnT Webdirectory: http://search.co.tt *********************************************************