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Published on 5/20/2005 in the Prospect News Distressed Debt Daily.

UAL union workers oppose request to reject collective bargaining agreements

By Caroline Salls

Pittsburgh, May 20 - UAL Corp.'s motion to reject its collective bargaining agreements with the International Association of Machinists and Aerospace Workers drew opposition from the union, according to the union's closing argument filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The union said UAL failed to make its case for rejection of the agreement.

"United troubles and bad choices are not the fault of the IAM's members," the filing said.

The union said the employees continued to contribute to record operating performance "while working under the burden of financial sacrifices made at earlier stages of this bankruptcy proceeding."

The union also said the court does not have the authority to allow United to reject the bargaining agreement and the company does not need concessions from the represented employees to permit its reorganization.

The filing also asserts that United has failed to spread the burden of reorganization to everyone involved and gave preferential treatment to the pilots' union.

United Air Lines and its parent company, UAL Corp., filed for bankruptcy on Dec. 9, 2002. The Chapter 11 case number is 02-48191.


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