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Judge delays action on United union strike sanction
CHICAGO (Reuters) — A federal judge Thursday delayed action until June 7 on a key United Airlines labor union bid to get the court to sanction a threatened labor strike.
The delay, however, would not stop the International Association of Machinists and Aerospace Workers from calling a strike next week if a bankruptcy judge allowed United, a unit of UAL, to void a labor contract with the ground workers represented by the union, an IAM spokesman said.
"We're not asking for (court) permission. We're asking them to prevent United from interfering," said IAM spokesman Joseph Tiberi.
The IAM has threatened a labor strike if the No. 2 U.S. carrier terminated its collective bargaining agreement without a new consensual deal in place.
United is in negotiations with the union, but Judge Eugene Wedoff had said he would issue a verdict on May 31 if they failed to come to an agreement on a concessions package.
United and its unions have completed arguments in a trial in which the bankrupt carrier asked for permission to end collective bargaining agreements with labor groups which have not yielded the cost savings the airline says it needs to exit Chapter 11.
UAL Chief Financial Officer Jake Brace said negotiations continued Thursday and "the attitude remains good."
United, which also faces strike threats from its mechanics union and its flight attendants union, has said a strike under the circumstances would be illegal.
United, in bankruptcy since December 2002, has said it needs $700 million in annual labor savings to exit Chapter 11 bankruptcy protection. The IAM-represented employees are the only labor group with which UAL has no deal.
CHICAGO (Reuters) — A federal judge Thursday delayed action until June 7 on a key United Airlines labor union bid to get the court to sanction a threatened labor strike.
The delay, however, would not stop the International Association of Machinists and Aerospace Workers from calling a strike next week if a bankruptcy judge allowed United, a unit of UAL, to void a labor contract with the ground workers represented by the union, an IAM spokesman said.
"We're not asking for (court) permission. We're asking them to prevent United from interfering," said IAM spokesman Joseph Tiberi.
The IAM has threatened a labor strike if the No. 2 U.S. carrier terminated its collective bargaining agreement without a new consensual deal in place.
United is in negotiations with the union, but Judge Eugene Wedoff had said he would issue a verdict on May 31 if they failed to come to an agreement on a concessions package.
United and its unions have completed arguments in a trial in which the bankrupt carrier asked for permission to end collective bargaining agreements with labor groups which have not yielded the cost savings the airline says it needs to exit Chapter 11.
UAL Chief Financial Officer Jake Brace said negotiations continued Thursday and "the attitude remains good."
United, which also faces strike threats from its mechanics union and its flight attendants union, has said a strike under the circumstances would be illegal.
United, in bankruptcy since December 2002, has said it needs $700 million in annual labor savings to exit Chapter 11 bankruptcy protection. The IAM-represented employees are the only labor group with which UAL has no deal.