UPI, Union OK Mediator; May Avert Strike

United Press International on Friday reached an agreement with its employee union that reduces the chances of a strike while the news service reorganizes under Chapter 11.

The management and union representing about 750 domestic employees of the news service agreed on the appointment of a federal mediator to try to settle a dispute over the news service’s labor contract.

UPI agreed to withdraw its request to a bankruptcy judge to cancel the contract, and, in return, the Wire Service Guild, representing the workers, dropped plans to ask for authorization to call a strike.

The agreement was worked out in hours of private meetings and approved by U.S. Bankruptcy Judge George Bason, who praised both sides for “pulling back from the precipice” that could have had “disastrous consequences.”

Bason approved the appointment of Edward McMahon of the Federal Mediation and Conciliation Service to seek a settlement.

McMahon said he will hold his first bargaining session with UPI management and Guild representatives on Aug. 14 here.

He said that the union’s contract with UPI will remain in effect pending the outcome of the negotiations and that no deadline was set for reaching a settlement of the dispute.