CHICAGO (AP) — United Airlines' mechanics union announced Friday that
its members rejected a tentative contract agreement, dealing the
carrier a setback in its efforts to cut labor costs without alienating
its workers.
Members of the Aircraft Mechanics Fraternal Association also voted to
authorize a strike if United succeeds in its efforts to get a federal
bankruptcy judge to impose its own terms, union spokesman Richard Turk
said.
The union represents about 7,000 United mechanics. Vote totals were
not announced.
The contract, agreed to earlier this month by negotiators, would have
cut wages by 5% for mechanics, followed by 1.5% annual pay increases
through the life of the contract. About 570 employees who clean
aircraft cabins would have seen their wages cut by 10%.
United pilots and flight attendants are conducting similar contract
ratification votes, with the results to be announced Monday.
The union representing baggage handlers, ramp workers and
public-contact workers faces an April 11 deadline for negotiating a
pact after a short-term deal was put in place this month.
United is seeking to rewrite all its labor contracts to save costs for
the second time in its 26-month bankruptcy. After slashing labor costs
by $2.5 billion annually in 2003, the Elk Grove Village, Ill.-based
airline says it needs another $725 million in yearly reductions.
The nation's No. 2 carrier also wants to eliminate its traditional
pension plans and replace them with defined-contribution plans, a move
that has inflamed unions and prompted dismay from the federal Pension
Benefit Guaranty Corp., which would be expected to take responsibility
for up to $6.4 billion of United's pension liabilities.
its members rejected a tentative contract agreement, dealing the
carrier a setback in its efforts to cut labor costs without alienating
its workers.
Members of the Aircraft Mechanics Fraternal Association also voted to
authorize a strike if United succeeds in its efforts to get a federal
bankruptcy judge to impose its own terms, union spokesman Richard Turk
said.
The union represents about 7,000 United mechanics. Vote totals were
not announced.
The contract, agreed to earlier this month by negotiators, would have
cut wages by 5% for mechanics, followed by 1.5% annual pay increases
through the life of the contract. About 570 employees who clean
aircraft cabins would have seen their wages cut by 10%.
United pilots and flight attendants are conducting similar contract
ratification votes, with the results to be announced Monday.
The union representing baggage handlers, ramp workers and
public-contact workers faces an April 11 deadline for negotiating a
pact after a short-term deal was put in place this month.
United is seeking to rewrite all its labor contracts to save costs for
the second time in its 26-month bankruptcy. After slashing labor costs
by $2.5 billion annually in 2003, the Elk Grove Village, Ill.-based
airline says it needs another $725 million in yearly reductions.
The nation's No. 2 carrier also wants to eliminate its traditional
pension plans and replace them with defined-contribution plans, a move
that has inflamed unions and prompted dismay from the federal Pension
Benefit Guaranty Corp., which would be expected to take responsibility
for up to $6.4 billion of United's pension liabilities.
