United mechanics, handlers ratify contracts

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Sorry if the message already been posted.....been having trouble with my
email the last few hours, the messages were not coming in to the apporaite
mailbox and disappearing. in to cyber space.......should be fixed now!

United mechanics, handlers ratify contracts

CHICAGO (AP) ? United Airlines moved a step closer to its goal of cutting
labor costs when mechanics and baggage handlers ratified contracts saving
the bankrupt carrier about $4.7 billion over the next six years. The vote
early Wednesday followed flight attendants' approval Tuesday afternoon of a
contract that will save United $1.9 billion over the same time period.
Seventy% of eligible mechanics and 83.2% of eligible baggage handlers voted
to ratify the contract, said Joseph Tiberi, a spokesman for the
International Association of Machinists and Aerospace Workers. "The
problems and solutions of the airline's latest crisis go far beyond labor
costs, but immediate action was needed to ensure the survival of this
airline," said Mechanics' union President Scotty Ford. Seventy-five% of
eligible flight attendants voted to ratify the contract, the Association of
Flight Attendants announced. Turnout was 63%, suggesting that there was
much reluctance about accepting the painful cuts.

Flight attendants' union president Greg Davidowitch said the results were
necessary but no cause for celebration. "Today marks an immense step toward
stability and security for our airline and our jobs," he said. However, he
added, the sacrifices made by employees "will have a harsh effect on our
work lives and our families." Approval by all three groups, following
earlier approval by pilots, flight dispatchers and meteorologists, sealed
United's quest to lower its annual labor tab by $2.56 billion through 2008,
or $15.4 billion in total. But unlike past labor dramas at United and the
recent one at rival American Airlines, the outcomes ? while important ?
wouldn't make or break the carrier's recovery  effort. If any group had
voted down the tentative agreement, United planned to head to bankruptcy
court on May 15 to get a judge to impose its preferred terms.

The airline called the flight attendants' vote an important step in
providing the cost improvements, productivity changes and operational
flexibility it needs to emerge from bankruptcy and succeed long-term. "We
understand and appreciate the sacrifices the members of the AFA have to
make," United said in a statement. "Their difficult choices have given
additional momentum to our collective efforts to transform United into a
viable competitive airline and to build a more secure future for our
employees." The 18,000 flight attendants, who voted from April 16 through
midday Tuesday, accepted an agreement calling for 9% wage cuts, changes in
work rules and fewer holidays. The pact would save United $314 million a
year. Two union groups from the International Association of Machinists and
Aerospace Workers held one-day balloting. Members of IAM District 141,
representing 23,000 ramp, customer service and retail workers, were asked
to approve 13% pay cuts, a 20% co-pay on health insurance and increased use
of part-time help ? a package that would save United $2.6 billion through 2008.

The 12,000 mechanics, members of District 141-M, voted on 13% wage cuts and
an overhaul of work rules adding up to $2.09 billion in total savings
through 2008. United's 8,000 pilots already have ratified the biggest chunk
of the savings ? a total of $6.6 billion, including 30% wage reductions and
significant work-rule changes. The world's second-biggest carrier gained
the leverage of bankruptcy court to impose cuts when it filed for Chapter
11 bankruptcy protection on Dec. 9, and already has used it to get
temporary cuts that expire Wednesday. Still, United needs to avoid labor
dissension if it is to emerge successfully from Chapter 11 and become
profitable again. Airline analyst Ray Neidl said it was important for
United to get consensus agreement from all its unions. "It's a service
business, and if the employees do it voluntarily it bodes a little bit
better for the reorganization than if they have to go to the court and have
it mandated," said Neidl, of Blaylock and Partners. "You can be a very
low-cost airline, but if you don't have employee cooperation you're still
not going to make it."


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