United Airlines machinists close to strike
Bloomberg News Service
WASHINGTON UAL Corp.'s United Airlines and its mechanics may begin a countdown to a possible strike next month after a federal agency said it will end routine talks.
The National Mediation Board said in a statement that contract negotiations this week did not yield an agreement and that both parties asked the federal agency to help conclude talks by starting a 30-day countdown.
United, the country's second-biggest airline, does not expect service disruptions.
The Chicago-based carrier and the International Association of Machinists and Aerospace Workers, which represents about 15,000 United employees, have bargained since December 1999 and resumed the latest round of talks Tuesday.
"In the final 30 days is generally when most progress is made so the quicker we can get into that period the quicker we can come to an agreement," Machinists spokesman Joe Tiberi said.
The board, which oversees airline labor relations, said it will offer arbitration during the week of Sept. 3. If either party rejects the option, the 30-day countdown begins.
The talks are likely to move into the cooling-off period because unions typically reject arbitration.
If there's no agreement at the end of 30 days, the workers are free to strike and the company can impose work rules.
The Machinists will prepare for a vote on whether to give union leaders the option to call a strike if necessary, Tiberi said.
The union is also in negotiations with United on a contract for 31,600 airport ramp and customer service workers. Those talks recessed yesterday and will resume next week, the board said.