UPI, Union to Hold Talks on Ending Pact

United Press International and the Wire Service Guild have agreed to meet Friday in their dispute over the company’s proposal to terminate its contract with the union.

Meanwhile, U.S. Bankruptcy Judge George F. Bason Jr. ruled Tuesday that UPI must pay the Guild $22,000 in dues and fees withheld from the employees’ April 12 paychecks but never turned over to the union. The Guild represents about 750 UPI employees.

In court papers signed by Bason, the two sides said they will attempt to agree on a mediator for the meeting.

If an agreement on a mediator is not reached, U.S. Bankruptcy Trustee William C. White will appoint one. If he is unable to make an appointment before Friday, he will serve as the mediator for the session.

Conference Slated

After the meeting, a pre-hearing conference will be held before Bason on the contract termination proposal, and, following the conference, counsel for both sides are scheduled to make opening statements. No testimony or evidence is to be presented at that time.

The hearing is set to resume in late August, and the judge is scheduled to make a decision by Sept. 13.

UPI, which filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on April 28, says the aim of the termination is to boost the company’s profits and make UPI more attractive to purchasers or investors.

UPI has asked the Guild for modifications in the three-year contract, which expires next April 26. An impasse was reached two weeks ago when the union said any negotiations were premature.

The company is trying to prevent full restoration of employee wages, as provided under an agreement reached last September when the union accepted a temporary 25% wage reduction. The company also has sought cutbacks in medical benefits, pension liability, dismissal indemnity and other contract terms.

Stuart Fishbein, representing the Internal Revenue Service, objected to the order for the $22,000 payment to the Guild because, he said, UPI owes the IRS some $400,000 in taxes withheld from the same paychecks.