SOURCE: CNN http://money.cnn.com/2004/08/11/news/fortune500/united.reut/ United's employees ask for trustee Unions have filed a suit to have a third party oversee the bankruptcy, mistrust management. August 11, 2004: 7:16 PM EDT CHICAGO (Reuters) - The International Association of Machinists (IAM) and Aerospace Workers said Wednesday it filed a motion in court asking that a trustee be appointed to oversee United Airlines' bankruptcy case. United, the world's second-largest airline and a unit of UAL Corp., filed for bankruptcy protection in December 2002. Late last week United asked Judge Eugene Wedoff for another extension on the period in which it can file its own exclusive reorganization plan -- this time until Dec. 30 -- as it continues to seek more cost cuts across the board. The current deadline, put in place as a result of several previous extensions, is Aug. 30. United has been maneuvering to revamp its business plan in the hope of attracting financing it needs to get out of bankruptcy. The government in late June rejected the airline's request for a guaranteed loan. "United Airlines management has thrown away the trust and respect of its employees," said Robert Roach Jr., the IAM's general vice president of transportation, in a statement. "No airline can successfully exit Chapter 11 without employee support," Roach said. "This management has placed UAL on a collision course with disaster." Earlier this week, the Air Line Pilots Association (ALPA) said it would use any legal means to prevent United from making unilateral changes to its pension plan. If approved by a judge, a bankruptcy trustee can be named when discussions and relationships between a debtor and creditors' committee break down. A trustee was named for Hawaiian Airlines , operating under Chapter 11 bankruptcy protection since March 2003, after major creditor Boeing (BA: up $0.27 to $49.68, Research, Estimates) questioned the effectiveness of the airline's management team. United calls move baseless At United, the bulk of employees are union represented and ALPA and IAM hold seats on the board of directors. IAM represents about 27,000 active United Airlines employees, such as ramp and public service workers. The union also said it filed a separate motion objecting to United's reorganization plan extension request. "United's creditors must be allowed to explore alternatives and not be held hostage by a failed management team," it said. However, in the United case the two parties appeared in public to have been working well together despite occasional disputes. United spokesman Rich Nelson said court filings would not make issues standing between the airline and its eventual emergence from bankruptcy disappear. "What we need now are constructive engagement and workable solutions," Nelson said. The next bankruptcy hearing is scheduled for Friday, Aug. 20 before Judge Wedoff.