United mechanics vote again
Union members urged to OK deal similar to one they rejected three weeks ago.
March 5, 2002: 6:45 a.m. ET
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NEW YORK (CNN/Money) - Mechanics at United Airlines hold their second contract ratification vote in less than a month Tuesday, one that union leadership believes will produce a different result despite not being a significantly different proposed pact.
The results of the vote are expected to be released after the U.S. stock market close Tuesday.
Members rejected a previous contract proposal suggested by a federal panel that would have given them an immediate 37 percent pay increase. Voting results likely won't be available until the early hours of Wednesday, eastern time. A "no" vote by rank-and-file mechanics could lead to a strike at United as early as 12:01 a.m. ET Thursday. But this time, leadership of the International Association of Machinists is recommending approval of the deal, even though the pay scale is roughly the same as the rejected deal.
The difference in the two proposals is that mechanics would get slightly more retroactive pay, and get that pay sooner than in the rejected deal. They also will see slightly better retirement pay.
More importantly for the pact's chances, a vote for this deal is not a blanket endorsement to immediately enter into talks with management on concessions that also had been called for by the federal panel. This deal makes clear that rank and file would get the right to vote on any proposed givebacks to the financially troubled airline.
A strike would be devastating for United, a unit of UAL Corp., the world's second largest airline company. Some analysts worry that the airline would be forced to seek bankruptcy court protection if there is a strike. The company said it believes that the threat of a strike has passed.
"Our customers can be confident that United will continue to operate without disruption," said a statement from CEO Jack Creighton on Feb. 18, when the new tentative deal was reached.
Union leadership said the union is prepared to go on strike, even if that's not what they're expecting this time around.
"We're still recommending a 'yes' vote, and we hope the contract ratifies," Tom Reardon, assistant general chairman of the IAM, told Associated Press. "But we're preparing in the event that it doesn't."
If members go on strike, Congress could vote to order the mechanics back to work and impose the federal panel's earlier recommendation.
Shares of UAL (UAL: Research, Estimates) gained $2.73, or 20 percent, to $16.40 in Monday. 
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