This is a multi-part message in MIME format. ------=_NextPart_000_009E_01C5054D.027E9D00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit UAL Mechanics Union Rejects Contract Proposal <http://money.excite.com/img/dji.gif> Friday January 28, 11:37 AM EST NEW YORK (Dow Jones)--Members of the union representing mechanics at UAL Corp. (UALAQ <http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=UALAQ > ) rejected a contract proposal negotiated by airline managers and union leaders, and threatened to strike if a bankruptcy judge changes their current contract. In a press release Friday, the Aircraft Mechanics Fraternal Association union said members "voted overwhelmingly" to reject the new contract, which would have cut wages and benefits. The company, which operates United Airlines, has said the labor cost cuts are necessary to exit bankruptcy. "The employees have shown that they do not have faith in the company's ability to successfully return United Airlines to profitability. Management at United has been unsuccessful in past attempts to become profitable after employees agreed to concessions. Our members are tired of subsidizing mismanagement," said the union's national director, O.V. Delle-Femine, in a statement. United officials weren't immediately available to comment on the mechanics' vote. The Chicago airline has already pared $2.5 billion from its labor costs, but said late last year that it needs to wring another $725 million in annual cuts in order to strengthen the balance sheet during a search for financing to exit bankruptcy. Because UAL is operating under bankruptcy-court protection, executives could ask the bankruptcy judge to impose cost cuts on the mechanics, and to terminate the mechanics' existing contract. The union said in the press release its members have authorized a strike if the current contract is changed. Already the bankruptcy judge has blocked the airline's attempt to cut labor costs by terminating employee defined-benefit pensions. The bankruptcy judge nixed a pilot contract that would have allowed the airline to dump the pilot pension, so long as other union groups agreed to have their pensions terminated as well. Pilots are in the midst of voting on a new contract proposal. Voting ends Monday. -By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com (Erik Ahlberg in Chicago contributed to this report.) Dow Jones Newswires 01-28-05 1137ET ------=_NextPart_000_009E_01C5054D.027E9D00 Content-Type: image/gif; name="dji.gif" Content-Transfer-Encoding: base64 Content-Location: http://money.excite.com/img/dji.gif R0lGODlhiAAnAPQAAP///yMfIMjHx1pXWJGPj0xJSqyrq3ZzdNbV1Z6dnePj4zEtLvHx8T87PGhl Zrq5uYSBggAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAACwAAAAA iAAnAAAF/yAAFEFZDgQjroJjLoc6mCJiDiJhQmYitqZATPQwOVaLEkEQDOYaQQdiRa1ar9istfma injcAmNWEh1uImhgcC4JADpuQxUvKQAK0yPBDTQAZE0LXlqFhoVMfWtfigEEbQEADEknAEVuJGV8 igeAQQSWJgqQBQOmEAZBaiVHh66vK6klBUAmCIklPi4lDXUAspW7fyYNeSadYAELAKvKcCXLmQEq K7sBEJJosNuGyaCTetY4ALiOJgLNC8YBBrgOpD9BDFwGZDgvAvlvgQsQDw/5CHEbaCXQAxGBNpUw EM9EnTo9oP1ySIldQzdcBqiBUM6JwhegCIrcIkpERYh3AP8oXABMTUU1oJJ99ALMXAlIJgzU1IbT 4cifAGxIJBekZjUjHdlxuWPQiZkbwtbZSnaAgNWDP6wNBUoQGA4G0hqUEyG1XZMDHTsBIFZOhYKK BtQcCVQmUMqgpgYwfEaDK8E6BxI0eyCVwANpBYgGUdBxitA1844JCLtWSSgTiT9ZJQBsAcA6y/wO pHsWoaJBeILgKDcOGKieXXBhXaVX0UcuIUVvqxhkQe63cggFeVNuL6SDYPskIGCNd6Pnqq8KuKtb S968BwxQW8EAQqYBCbYDMtVq/AAHAh7JIyJNUQNTVhPoo26Icb7lBEwteE9AfvX/h7TnxwHNYOYA Z9MBeMX/LQRAMEABDiQgkIL/SdUHCgZMSOEhDAiw14a6IZAAaQNmCOKJKBrywAHONZAdfSnGGOOK zhUgoYw44qgABDUmAGMWEBzR3RE3/jDAG9ww4AJWOfpVTxMN+MhNAWoVgA1LKxTxoyFVISBekwQp QABvMGhYBQMEiGnJAwgw1IsPLImIBwFtDuIDAwmEZwBhBuQWFJ0CLFAemGH2FOWXWMwABR8OODgP FEw8sMAy7yUAQQMkAOLAAgUsimlKDzTgwABFfEjoNqM0UYCphqTCxGQ8LhFAEXwAcMBcC4wxgINM oJUKAjZgI0IBVh0Zyamo9nQkNwQUIOk8JKBArLSTOdAn/y2zPuiCAg80C4eDKzgCnrfIwnKLPvkQ 5ICLCCggxQDANsqAAQ4wcIA/uwLibprnIQCBLqSukB9Dt5bbZJQzgsWkwSnmd8CW/z3oJ8MUV2zx xRhzcy6603GsjwgdosvALT+QlQ81AZ0pX7sep0wOuvblE/PJP6T7S3gvE4euFzYLwHMNNG+zawEQ El2AAnzkGYClxyoZwGRiHFClWwGI8dSEEerQ7AxJi5tY0jzkkR2xMFyzAJJ8IBPh10sDECQf+SU2 wz4hJRaUEIh2M56uqz39KgDl8YGAC3CkNKsIi+RwLBXH9oKADra+WkQ+T4+wFijdyvd0O/GkWTk7 f+uz+f/TOnSyxN2GT+zKQab80vqrr55ew9I6DB6PsIk/s4UPnOlulod+k36QIx6y+SqwnafCFHqV i54e6VCI+UYqezkiUuuA0MIH5QmoFe6t7KhFAKaIj6N7FdDsBTlRCTiQGBPtI34rkn+z4Mj6poTO /ahwpFLVGyxSi/UIgj2NqIdyBzAfQkqxhpA0ahprMd/6qFAHOhyrV1YiSgLLR4t4IKlz+Dtb8xDY CzgI4AxosZVGEKe6VxSwb5RLDwO2o7W5pWEGw2vN+pCEADa54A07JF0AGEO6OzgCIHeoHwiPlb8R xm4aSzDGdEwxxMuVTGjjeF3wpgOQLAmxBv64RgQRsr6zkJwwDUC84NMm9yo1OWKGoFCiAlJhmABM gQ36e2J69rE5pTHEemjixguJEsPIcWcahxGBf8i3CAGggIk/yBUzFOdB2FXuHnGMY+VyYMMGDE8A 88AGoNZIOuI8DQIzFIIV+/SAQRXCAJPKUCxJQLSqkeCDgMCDWuKUhBksYAC/hIJGLkgebCAACtig ZR5qWctUvMc3I6gaC4hWg/OEJBVsiObR/OAihCSAJan4pR9mwJkGhAAAOw== ------=_NextPart_000_009E_01C5054D.027E9D00--
