United Averts Strikes With Mechanics, Machinists

[struggle4progress]

May 31, 2005 2:11 pm US/Central
CHICAGO (AP) United Airlines and its machinists' union announced an agreement in principle on a contract Tuesday, narrowly heading off the need for a bankruptcy judge's ruling that could have triggered a strike.

A formal contract agreement is to be presented in federal bankruptcy court June 17. Judge Eugene Wedoff gave the two sides until then to work out remaining details.

The agreement in principle came just hours after United's mechanics ratified a five-year contract, giving the nation's No. 2 airline a pair of crucial labor victories that it needed to avoid an employee walkout and strengthen its bid to come out of bankruptcy.

The tentative deal with the International Association of Machinists and Aerospace Workers, representing 20,000 baggage handlers, customer service representatives and other ground workers, was disclosed in court with Wedoff poised to rule on United's request to break the contract. The IAM had warned it would shut down the carrier with a walkout if that happened. <snip>

http://cbs2chicago.com/topstories/local_story_151102428.html

[napi21]

1. Good for the workers! I'm glad. Now, can they get the judge to

overturn the verdict against United keeping their pension contract?

[Robbien]

2. Excuse me but the article said the workers are taking a pay cut and other

concessions.

The mechanics agreed by a 59 percent to 41 percent vote to ratify a contract containing $96 million in annual concessions, including 3.9 percent pay cuts and reduced benefits.

The mechanics' new pay cuts, effective immediately, will come on top of 14 percent reductions made two years ago. Reduced benefits, such as sick days and holidays, would account for the rest of the labor savings.

A 5 percent defined-contribution pension plan is part of the new contract, replacing the former defined-benefits plan. The mechanics' union also will get $40 million in convertible notes upon United's exit from Chapter 11 bankruptcy


How is this good? For the next five years they will be earning 4% less than they earned yesterday.

[napi21]

3. Well, excuse me, but my son works for Delta as a mach and they

had to take a 20% pay cut about 6 months ago, but they are still working! That's my point. They still have jobs. Maybe they had to take a pay cut, but it's better than the unemployment line, isn't it?

I don't mean to beat you up here, none of this is your fault, nor wat it my son's fault. I just think if the airlines can be kept afloat, it's better than the alternative.

[Robbien]

4. I am glad your son still has an income

but worry about that reduced income not looking so great with the inflation/depression which is coming around the corner.

The times we are living in is getting scary. Again, glad your son still has a job. Sorry for raining on your parade.