United Airlines and its mechanics union are the It couple. You might have thought the most celebrated pair of the moment was Jennifer Lopez and Ben Affleck. But while both duos' endings seem to be already written, United and its partner make for much better copy: They're short on cash, they have lots of bills due, and they're fighting. After the mechanics' Thanksgiving message to their significant other -- thumbs-down on a new contract -- the media spent the holiday weekend in lukewarm pursuit of the pair's next move. Fresh from the bargaining table this morning comes word that the union will vote again on the pact. Trail-sniffing we've got. What we don't have enough of is context for the union's move.
Are the mechanics nuts? That's not an unreasonable question to contemplate on hearing the news that 57% of the union had voted against the tentative agreement. After all, United's parent company, UAL, faces a daily, if not hourly, barrage of life-threatening deadlines. On today's docket is a $375 million debt payment that has come due (but can be delayed until Dec. 16, according to outlets). Meanwhile, UAL is trying to convince the Air Transportation Stabilization Board that United is worthy of a $1.8 billion guaranteed loan. And the Wall Street Journal reports it heard the rustle of paperwork being shuffled in preparation for a possible bankruptcy filing by the airline.
Do the mechanics have a vocational death wish? Not really. Some of the best coverage of United's woes comes from the airline's hometown newspapers in Chicago, and the best guess among scribes there is that, with United so close to dead already, its rebellious union figured it might as well kick up some dust. Previous givebacks resulted in United's employees owning a whopping 55% of their employer. Their investment's shares are down 80% this year, and if UAL files for Chapter 11, the Chicago Tribune noted, the value of the employee stock-ownership program likely would be wiped out. The Sun-Times countered that bankruptcy could make life for employees worse than it is now, resulting in fewer jobs and court-ordered elimination of existing labor contracts.
Call it a holiday malaise, or perhaps a tryptophan nap by reporters, but beyond Chicago's boundaries there seemed to be little examination of the union vote despite it being cast by many reporters as "stunning." As the long weekend continued, United's flight attendants ratified their own cost-cutting pact. Outlets began reporting that UAL and the mechanics had met on Sunday, though details were unknown. The New York Times predicted a second vote would be taken if union leaders sensed the initial rejection was a protest vote. Now the second vote is at hand, set for Thursday. But you know these celebrity things: They never last. - Deborah Asbrand
UAL Is Expected to Consider More Talks With Mechanics
http://online.wsj.com/article/0,,SB1038581657362181708.djm,00.html
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UAL Scrambles To Rescue Deal
http://www.chicagotribune.com/news/chi-0211300120nov30.story
Why Mechanics Won't Take UAL Cut
http://www.suntimes.com/output/news/cst-nws-ual01s1.html
United Tries For More Pay Cuts (AP)
http://www.cbsnews.com/stories/2002/11/30/national/main531287.shtml
United, Union Keep Talking
http://www.usatoday.com/travel/news/2002/2002-12-02-united.htm
United Still Asks More Wage Cuts
http://www.washingtonpost.com/wp-dyn/articles/A61670-2002Dec1.html
UAL Talks With Holdout Union
http://www.nytimes.com/2002/12/02/business/02AIR.html
United's Attendants OK Cost-Cutting Deal (AP)
http://www.latimes.com/news/nationworld/nation/la-na-united1dec01.story
United Airlines Mechanics Agree to Wage Cuts (Reuters)
http://tinyurl.com/35dl
UAL Mechanics to Vote Again
http://money.cnn.com/2002/12/02/news/companies/ual_mechanic/index.htm
