This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ United Airlines May Face Deeper Challenges July 15, 2003 By EDWARD WONG United Airlines mechanics have voted to oust the powerful machinists' union in favor of being represented by a union that is smaller but more militant. The monthlong representation vote, which was tallied by the National Mediation Board yesterday, ended with 64 percent of voters favoring the upstart union, the Aircraft Mechanics Fraternal Association, known as AMFA. The vote greatly bolsters the new union's standing within the ailing airline industry, where it has a reputation for resisting concessions and is expanding its reach as managers are trying to wrest deep givebacks from employees. Before the vote, the union represented about 11,000 workers at seven airlines, including Northwest Airlines and Southwest Airlines, where it took over representation from the Teamsters in January. United, with about 6,800 active mechanics, is by far its biggest coup. Some labor experts said the takeover yesterday could spur unions in other industries to become more combative in an effort to retain the support of their members. The mechanics at United had been rebelling against management's cutback demands, most spectacularly in a vote last November in which they rejected crucial concessions. That rejection could have contributed to the federal government's denial of a $1.8 billion loan guarantee to United, pushing the airline to file for bankruptcy protection in early December. The ouster yesterday dealt a huge blow to the International Association of Machinists, the union affiliated with the A.F.L.-C.I.O. that represented United's mechanics and more than 100,000 airline workers across the country. But the machinists' union will continue to represent baggage handlers, security guards and reservations agents at United. It said yesterday in a statement that the mechanics had "decided to take a new direction for their future." O. V. Delle-Femine, the national director for AMFA, said in a written statement that "we look forward to developing a positive relationship with United Airlines officials, one that will benefit both the company and our new members." The voting was done by phone, with 5,234 of 8,239 voters casting ballots in favor of dropping the old union. Of the 13,144 eligible voters, a significant 36 percent did not vote. The mechanics and the other ground workers represented by the machinists' union were the last United employees to agree to concessions in bankruptcy court. They voted by April 30 to give United, a unit of the UAL Corporation, $794 million a year in cutbacks. That contract will not expire for six years, so United's struggle to restructure in bankruptcy court should not be immediately affected by the representation takeover, labor and industry experts said. The machinists' union will keep its seat on the company's board, a United spokesman said. Mr. Delle-Femine said in a telephone interview that he would let AMFA's new members decide whether the union should take a seat on the board. He added that union leaders were discussing whether to get someone on the creditors' committee. The machinists have a representative on the committee, largely because of United's huge pension obligations to its members. In a recent bankruptcy court filing, a federal agency said that if United's pension plan for its ground workers had to be terminated, the deficit would amount to $1.9 billion as of mid-April. United did not have much reaction to the takeover, except to say in a written statement that it had always "respected our employees' right to select their union representation." Dissatisfaction with the machinists' union boiled over at a time when the entire airline industry has been undergoing extreme belt-tightening because of the devastating travel downturn. Labor experts said the mechanics' vote was a cry of frustration at their inability to grapple with forces that were steadily eating away at their paychecks and job security. "The machinists' union is extraordinarily good at corporate research, at really understanding the intricacies of corporations' finances and working at that level, really as equals with corporate leaders to develop strategies," said Richard W. Hurd, a professor of labor studies at Cornell University. But "with all the economic turmoil in the airline industry," Mr. Hurd added, "there's a lot of frustration among the members who don't understand what's going on at the top levels. What they see is a steady onslaught of requests for change and concessions. They're extremely nostalgic for the days when the machinists' union could deliver for their members." AMFA had been trying for several years to take over representation at United by saying that it would represent only mechanics and that it would not allow management to impose concessions on workers. A related union, the Professional Flight Attendants Association, took over representation of flight attendants at Northwest late last month. Several labor and industry experts said that given the current downturn, it would be tough for AMFA to improve on the machinists' negotiations with United. Though AMFA officials say they never allow concessions, Northwest said it had eliminated 4,400 jobs from the ranks of mechanics, cleaners and stock clerks since AMFA took over representation from the machinists three years ago. There are now 5,900 workers represented by AMFA at Northwest. "There will be a very close look at the pace of any outsourcing at United," said Robert W. Mann, an industry consultant. "There was criticism surrounding the amount of outsourcing that happened at Northwest after AMFA took over." Increased hiring of outside workers has been a big concern of mechanics at United. Charlie Lincoln, a lead mechanic and shop steward at United's maintenance base in San Francisco, said that "the members have spoken, and now they'll get the representation they want." "My opinion is that it won't be better," he added. In defense of his union, Mr. Delle-Femine said that "all airlines do outsourcing." Regardless of what happens in bargaining sessions, the takeover at United could have ripples well beyond the airline industry. "It represents a resurgence of militancy; it's a militancy born in the crucible of the airlines' financial difficulties," said David L. Gregory, a professor of labor law at St. John's University School of Law. "What will be interesting will be to see the effect it has on other industries. This might be a preview of things to come in the fall." http://www.nytimes.com/2003/07/15/business/15AIR.html?ex=1059275665&ei=1&en=cadda762ef0df86b --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! 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