United’s Mechanics Reject Arbitration

The union representing mechanics for UAL Corp.’s United Airlines has rejected an arbitration effort by a government board, raising the possibility of a strike at the second-biggest U.S. carrier.

The International Assn. of Machinists and Aerospace Workers turned down the National Mediation Board’s offer to help resolve a contract dispute between the Chicago-based carrier and 15,000 mechanics and other employees, union spokesman Joe Tiberi said. The rejection of binding arbitration means company and union negotiators will enter a 30-day cooling-off period.

A strike is unlikely as the mediation panel suggested that a so-called presidential emergency board be set up at the end of the cooling-off period, United spokesman Joe Hopkins said. The emergency board would have 60 days to end the dispute, and union mechanics couldn’t strike during that time, the airline said.

UAL shares rose $2.48 to $16.72 on the NYSE.