CHICAGO (AP) -- The union representing 20,000 ramp workers and customer-service agents at United Airlines reported ''significant progress'' Wednesday in negotiations aimed at averting a contract deadlock and threatened strike.þþThe International Association of Machinists and Aerospace Workers gave the upbeat report as it continued marathon talks with United to work out a deal before Thursday afternoon, when a bankruptcy court trial is due to resume on United's proposal to impose lower pay and benefits.þþThe union -- the largest at the nation's No. 2 carrier -- said that while differences remained over pensions and job security, the two sides were exchanging revisions to try to wrap up a tentative contract agreement.þþTop IAM official Randy Canale told members the union had delivered an amended contract proposal to the company at 3:30 a.m. Wednesday and talks were continuing.þþ''Discussions with company representatives regarding the IAM's proposal resumed early this morning and significant progress has been made,'' Canale, president of IAM District 141, said in a communique posted on the union's Web site. ''However, important issues regarding jobs and pensions remain unresolved at this time.''þþSpokeswoman Jean Medina of United, a unit of UAL Corp., said only that talks were ongoing.þþJudge Eugene Wedoff had postponed trial testimony scheduled for Tuesday and Wednesday in a two-day recess designed to let the sides work out a contract, thus foregoing the need for a verdict that likely would cause United problems no matter which way he ruled.þþA tentative settlement would mean United has clinched contract deals with all its employee groups, effectively completing its bid to cut labor costs by $700 million annually before it makes a concerted push to come out of Chapter 11 bankruptcy.þþUnited's 7,000 mechanics continued voting Wednesday on a tentative five-year deal agreed to by their negotiators from the Aircraft Mechanics Fraternal Association on Monday night.þþWhile AMFA's leadership has not recommended whether its members vote to ratify the contract, which would cut their pay by an additional 3.9 percent and shrink their benefits, union chief O.V. Delle-Femine told them a ''No'' vote could produce a worse outcome.þþ''Please be advised that the bankruptcy laws, the court system and federal agencies like the Pension Benefit Guaranty Corp. are strongly biased in favor of the large corporations,'' Delle-Femine, AMFA's national director, told members in a message attached to the contract proposal. ''Our choice is to consent to concessions from the company or risk even worse terms imposed by the bankruptcy judge who has shown a proclivity to agree to company demands.''þþ''There is no doubt we all have a gun to our head,'' he said.þþThe Elk Grove Village, Ill.-based company was seeking annual wage and benefit cuts totaling $176 million over five years from machinists after negotiating $96 million in reductions in the tentative deal with mechanics.þþSeparately, the Association of Flight Attendants continued efforts Wednesday to overturn Wedoff's May 10 approval of an agreement under which United intends to turn its pension plans over to the Pension Benefit Guaranty Corp. by the end of this month.þþThe AFA filed an appeal of the ruling with U.S. District Court in Chicago. Spokeswoman Sara Nelson Dela Cruz said flight attendants also were lobbying on Capitol Hill in support of legislation to place a six-month moratorium on pension plan terminations, retroactive to May 1.þþUnited issued a statement reiterating its belief that the bankruptcy court's decision was correct. ''We recognize that is difficult for our employees and retirees, but the agreement is critical to the future of United and strengthens the financial platform we need to attract exit financing and compete effectively,'' the company said.þþ
Source: NY Times
