Agreement hours before judgement by the bankruptcy court

A potentially ruinous strike at United Airlines has been closely associated, Tuesday, that the Union represents 20000 baggage managers, ticket agents and other workers base and the carrier to reach agreement on the principle of a five-year contract.

This agreement and the ratification of the Treaty of another union as soon as possible the day is expected that hundreds of millions of dollars in savings that the bankrupt airline needs to survive. United was $ 700 million annual savings on the six unions and management.

The tentative agreement between United and the International Association of Machinists and Aerospace Workers was reached because the time is approached by a bankruptcy court to judge whether a decision on the Treaty provisions can be replaced, with an indication of workers, reducing wages and social benefits.

The European Union has warned that the decision by the judge for the benefit of United would trigger a strike, which some analysts said could lead that the liquidation of the second airline in the world.

The two agreements “move us forward in our restructuring and the scene of our exit from bankruptcy,”the company said in a statement.

Lincoln Chu, owner of All Ways Travel in San Francisco, breathed a sigh of relief when he heard that a strike had, para.

“It would be foolish to encrypt (if a strike took place),” he said. “Just this morning, customers ask,” How is my flight for tomorrow? “I told them, when there is a strike, you must go to the airport and see if the Organization cheap tickets on another airline.

States customers were also relieved. “We have two cards in Hawaii and Germany this summer for United,” said High School Counselor guide Birgit Hoffmeister of El Sobrante. “I have my reservations, where the best flights, then my travel agency, we just hope they do not call the strike. I do not think it would come, but it would be quite Bummer. ”

Another customer unit, Emanuel Torres of Daly City, said he is still nervous about the airline’s stability because their disgruntled workers in the press seem interviews.

“These people (United workers) are of the opinion that the company is still vague,” said Torres, joined, entry tickets to Las Vegas for his wife and July. “When they cut l ‘man and pay pensions, they are on the ground very unstable. When he starts to receive precarious, I’ll skip the ship and at work (to another airline). I want to go on vacation, I’m not sitting there Airport.

United, the dominant media in San Francisco International Airport, account for about half of national dailies and 500 international flights. A strike by the airline, which employs 11000 people in northern California, would have serious consequences here and beyond.

“Given that the tourism industry was resumed in recent months (strike) would be a terrible embarrassment for the economy,’’said Bay Area economist Tapan Munroe. I think we have our share shock.”

On the SFO spokesman Mike McCarron said: “Everyone is now expired. Everybody is happy to hear on the news.”At the airport, said McCarron has been in consultation with the San Francisco Police Department maintain open channels in case a strike and union members on where they arise as picketing. “This goes back on the burners, and I hope we do not need such plans,”McCarron said.

The agreement in principle has already been in the Chicago area the courtroom of Federal Bankruptcy Court Judge Eugene Wedoff it a decision on the request of the United Nations to lay the machinists’.

Instead, Wedoff the two sides have until June 17, to develop the details of a formal contract that has yet to be ratified by machinists union members. No page.

“We have business to 11:45 pm time European average,’’said Joe Tiberi, a spokesman for the machinists. We have the (bankruptcy) Court of 1:30 pm, after notifying our representatives around the country, they could level down and it would not strike today. It was the end.”

The two parties were, in parallel with the security procedure - in the courts, where governments, the machinists’ contract laid, and in contract negotiations of a hotel in Chicago.

The discussions had ended Friday machinists, if the union in the negotiations said a proposal on the management and departure was for the Memorial Day weekend. However, the two parties remain in contact on Saturday and Sunday and machinists union negotiators to return to the table in Chicago on Monday. Tuesday conferences. Both parties prefer an agreement on an agreement of a judge.

Former Tuesday at 7 pm PDT, the Aircraft Mechanics Fraternal Association, represented Mechanics 7000, said members had ratified a temporary agreement. The vote on the Covenant, with a payment of 3.9 per cent of workers to fall, it was 59 per cent in favour and 41 percent against.

United had initially requested that the bankruptcy court break both unions “, and both had threatened to strike if their contracts were abrogated. But the mechanics Union fight, if the due date, May 16 as part of negotiations approved on a provisional basis, the treaty was ratified Tuesday rendering judges of the Court of Justice superfluous.

Pensions have been the main problem in the negotiations. A new system will replace the pension benefits unit that could Wedoff agreed on the pension Benefit Guaranty Corp., and unions say it is not desirable.

A spokesman for the mechanics’ union, Richard Turk said Tuesday ratified the treaty contains a definition of contribution retirement is comparable to a 401 (k). It is all the greater, the more years a member works. He said the average contribution of the bond market by 5 per cent of workers.

A Mechanical Turk said the person did not feel much joy union about ratify the treaty.

“Even 59 per cent, a vote for him, I do not see many people excited,” he said. “These are not regular negotiations, is negotiating with a pistol on his head.”

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