The threat of a workers strike against bankrupt United Airlines lessened last night with the announcement of a tentative agreement between the carrier and its mechanics union. Reached outside of bankruptcy court, where UAL Corp. has proceeded on a hearing to unilaterally alter certain collective bargaining agreements, the deal still needs to be ratified by members of the Aircraft Mechanics Fraternal Association. Results of rank-and-file voting are expected May 31.
AMFA had prepared for a work stoppage in the event United won court approval to change contracts without union consent. "The bankruptcy laws, the court system and federal agencies like the Pension Benefit Guaranty Corporation are strongly biased in favor of the large corporations," said AMFA national director O.V. Delle-Femine, in a statement issued last night. "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."
Like AMFA, the International Association of Machinists also threatened to strike should United impose contract changes. IAM is the last UAL union not to have granted fresh concessions. A United employee hotline message this morning, however, said the company is analyzing a new IAM cost-savings proposal.
Meanwhile, the section 1113c bankruptcy hearing to determine if United can rewrite existing labor contracts is scheduled to continue for the next few days.
United's tentative deal with AMFA follows a courtroom victory last week. Despite strong opposition from labor groups, presiding bankruptcy judge Eugene Wedoff ruled the company can hand underfunded pension programs to PBGC, a development that may trigger similar attempts by other carriers, new airline Chapter 11 filings or renewed legislative efforts to reform federal pension rules
(BTNonline, May 11).