TWA Union Rejects Binding Arbitration

Trans World Airlines Inc.’s largest union rejected a federal mediator’s offer of binding arbitration, setting the stage for a 30-day countdown to a possible strike at the air carrier. The International Assn. of Machinists, which represents about 16,000 mechanics, flight attendants and passenger service workers, has been in contract negotiations under the guidance of the National Mediation Board since September 1997. Talks broke off Friday evening after meetings with mediators in Washington for the past two weeks. A union spokesman said the key sticking point in negotiations is economic, with the IAM seeking compensation in line with industry standards. TWA employees made economic concessions when the company went through two bankruptcy reorganizations earlier this decade. St. Louis-based TWA said it “remains committed” to reaching new labor agreements that will give immediate wage increases and eventually bring TWA workers to “wage parity” with employees at other major airlines. The IAM is also willing to negotiate, the union spokesman said.The National Mediation Board couldn’t be reached to comment. TWA shares closed unchanged at $5.69 on the American Stock Exchange.