United Airlines Unions Not Optimistic on Ownership Talks

Prospects for a deal giving United Airlines pilots and ground crews a majority stake in the carrier appeared to fade Tuesday as a deadline neared.

The International Assn. of Machinists and Aerospace Workers warned its members that negotiations in New York between the union group and UAL Corp., United’s parent, “are going slowly and could possibly fail.”

A source close to the union who spoke on condition of anonymity said the outcome of the talks might depend on the firmness of a Nov. 13 deadline for United to cancel a proposed sale of 15 flight kitchens. The unions have said the sale of the kitchens, which employ 5,200 Machinists, would kill any chances for a deal.

The Machinists would need a week to 10 days to hold a ratification vote on any employee ownership agreement, which means a deal would have to be struck by Friday. On the pilots side, a deal would require only the approval of leaders of the Air Line Pilots Assn., but the union has promised to hold briefings for members.

United spokesman John Kiker in Chicago said Nov. 13 is “a hard-and-fast deadline” for the kitchen sale. He would not comment on the status of negotiations.

The unions have offered about $4 billion in wage and benefit concessions in exchange for 60% of UAL. The talks reportedly have stalled over wages and staffing requirements for a second-tier, lower-cost airline that UAL would launch as part of the deal.

In a recorded message Monday to members of Machinists Local District 141, which includes United workers, a representative said the union planned to launch a campaign of “labor unrest” against the airline if the talks failed.

A separate recorded message to ALPA members Tuesday said leaders of the pilots union had done all they could to hurry the negotiations along.

UAL’s stock was down $2.25 a share Tuesday afternoon on the New York Stock Exchange at $151.75.

The three unions representing United’s pilots, ground crews and flight attendants offered July 15 to make contract concessions in exchange for majority ownership.