Chicago – Negotiations between United Airlines and its machinists union remained snagged over pension issues today, just hours before a bankruptcy court trial was to resume on the carrier’s proposal to break the union’s contract.
The impasse left hanging the issue of a possible strike by the United workers, who have threatened to walk out if lower pay and benefits are imposed without a consensual agreement.
The International Association of Machinists and Aerospace Workers sought another postponement in the court proceedings so it could try to wrap up an agreement, but it was not immediately clear if United also wanted the delay.
United spokeswoman Jean Medina said contract talks were still under way but declined further comment.
Closing arguments in the trial were scheduled for today afternoon, despite an erroneous IAM message to its members that Judge Eugene Wedoff had approved the delay overnight.
Union spokesman Joseph Tiberi said the message, posted on the union’s website, was based on information received from United early today.
“We are equally prepared to go back to the bargaining table or the courtroom,” said Tiberi, whose union represents about 20,000 public-contact employees, baggage handlers and other United ground workers. “United Airlines brought us to court in the first place, and where we go next is up to them.”
He said pensions were “definitely the main sticking point” in the talks.
Besides wages and benefits, the two sides are negotiating over a defined-contribution pension plan to replace the defined-benefits plan United is terminating as part of a companywide push to cut labor costs.
United, a unit of Elk Grove Village, Ill.-based UAL Corp., was seeking annual concessions totaling $176 million over five years from machinists to complete a targeted $700 million in labor cost reductions.
