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United Mechanics Reject Contract Offer

Both Sides Agree To Resume Talks

UPDATED: 9:53 am MST February 13, 2002

By a wide margin, United Airlines mechanics and related employees voted Tuesday to reject a contract offer and to strike next week if a new contract couldn't be agreed on.

The mechanics union told 7NEWS that the felt that United's proposal was too vague and that the conditions were not clearly defined.

The airline's offer, recommended by an emergency board appointed by President Bush in December, calls for immediate pay raises of as much as 37 percent.

It would have given them the highest salary in the industry but at the same time, it would have required them to give back some of the money to help the struggling airline.

A walkout could begin as soon as Feb. 20 unless there is a last-minute settlement or congressional action to block it.

Both sides said they want an immediate resumption of talks.

"Both parties have agreed to re-enter negotiations during which either an agreement will be reached or a new proposal advanced," chief executive Jack Creighton of United parent UAL Corp. said in a statement. "If progress is made, and there is no reason to believe that it can't be, then we anticipate that another vote will occur by mid-March, without interruption of operations."

United is the largest carrier at Denver International Airport.

With nearly 90 percent of eligible members voting, 68 percent voted to reject the proposal. In separate voting, 86 percent of the membership authorized a strike at United if an enhanced agreement cannot be hammered out.

Tom Buffenbarger, International President of the Machinists Union, urged an immediate resumption of negotiations with United Airlines. "We will travel anywhere, and meet around the clock if necessary for the next six days to reach an agreement," said Buffenbarger. "My advice to Congress and the President remains the same: stay out of this and we will get it done."

United mechanics have not received a raise since 1994 and have been working under the terms of the old contract for 19 months. Many are angry after years of turmoil between labor and management at the 55 percent employee-owned carrier.

Under the proposal, a top United mechanic paid $25.60 an hour would receive a raise to $35.14 immediately and to $37.54 by mid-2004, surpassing the $34 received by American Airlines mechanics.

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But several union lodges recommended a "no" vote because of looming wage givebacks and the fact that employees would not receive retroactive pay for work dating to July 2000 until eight quarterly payments beginning in April 2003.

If the talks between the union and the airline end with no result, a strike could cripple United and send it into bankruptcy., 7NEWS reported.

United, which laid off 20,000 employees and slashed its schedule last fall, says employee concessions are necessary if it is to recover from last year's record-setting $2.1 billion loss.

Aviation industry analyst Sam Buttrick of UBS Warburg said that a strike is "very unlikely."

Once the two-year dispute with mechanics is settled, the company still needs to resolve a contract impasse with its largest employee group -- 30,000 ramp and customer service workers.

"If we get both contracts settled, I would be very optimistic," Creighton said in an interview last week. "For the first time in close to two years we'd have labor stability in this company."

"Our negotiators opposed the emergency board’s involvement," said Scotty Ford, District 141-M president and lead negotiator for the mechanics group. "Their proposals fell short of what we felt we could achieve in direct negotiations. The results of today’s vote shows our members agree."

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