United and 2 Unions Move Closer to Pacts

United Airlines and unions representing its mechanics and baggage handlers edged closer to long-term contract agreements Friday as a U.S. Bankruptcy Court trial on the carrier’s bid to terminate existing pacts neared a conclusion.

The airline and unions are working against a rough deadline of sometime next week, before Judge Eugene Wedoff issues a ruling that could trigger a strike by United’s workers if it authorizes the breaking of tentative contracts.

Both unions, the Aircraft Mechanics Fraternal Assn. and the International Assn. of Machinists and Aerospace Workers, said key progress was made, but neither expected to agree on a new contract until early in the week.

Joseph Tiberi, a spokesman for the machinists union, which represents United baggage handlers and other workers, said negotiators had overcome the talks’ biggest stumbling block and were leaving Chicago for the weekend. He said they intended to present a revised proposal to the company Sunday night or Monday in an attempt to nail down a settlement.

The company is seeking $176 million of cuts in annual wages and benefits from the machinists. The key dispute that was resolved involved how much value to put on such things as reductions in holidays and vacation days.

The other set of talks, involving the aircraft mechanics union, took place at a hotel about a mile away and also was inching toward a deal.

“There definitely is movement, progress,” said Terry O’Rourke, a San Francisco-based mechanic who was sitting in on the talks. “But I have a sense that it’s probably going to go through the weekend.”

Mechanics have been insisting on some assurance of job security before agreeing to the latest cutbacks. United, a unit of UAL Corp., is seeking a total of $96 million in annual cuts from mechanics as part of a goal of $700 million in reductions in annual labor costs.

Pilots and flight attendants agreed earlier to five-year deals, but the flight attendants, whose pact is in arbitration, are threatening to strike over the latest round of concessions sought, particularly the elimination of defined-benefit pensions.

Members of both unions would have to ratify any deals. The mechanics’ group rejected a tentative agreement in January, with 57% voting against it.

“We are hopeful that the good tone and nature of the talks continues,” said Jack Brace, United’s chief financial officer.