BY JANICE LYNN
WASHINGTON, D.C. - Mechanics, technicians, and utility workers at United Airlines, organized by the International Association of Machinists (IAM), rejected proposed wage increases in voting during early January.

The 63 to 37 percent vote by the 13,900 IAM members was a indication of continued dissatisfaction with the Employee Stock Ownership Plan (ESOP) negotiated in 1994. That agreement gave deep wage and work rule concessions in return for 55 percent employee ownership - through shares of stock that workers can't touch until they retire or resign - and promises of "job security." The ESOP was cheered at the time by the Clinton administration as establishing a new model for labor and management working together.

The proposal that was just rejected would have raised wages by 3 percent in 1997 and 1998 and 2 percent in 1999 and 2000. United's pilots turned down similar wage increases by an 80 percent margin. In a separate vote, the 9,500 ramp workers, storekeepers, food service workers, and others represented by the IAM did approve the wage increases by a 67 percent margin. The proposal also provided for lump-sum profit sharing payments in 1998 and 1999 if United's pre-tax earnings are $1 billion or more.

This "mid-term wage adjustment" was built into the ESOP contract, which is in effect until the year 2000. That agreement sets an overall limit of a 10 percent wage increase. Many who voted "no" did so in order to get bigger raises sooner. The proposal now goes to an arbitrator.

The vote was a topic of debate and discussion among United employees. Most workers agreed the proposed wage increases were "crumbs" and didn't come close to making up for the more than 15 percent in wage concessions given up in 1994, not to mention keeping up with inflation. Others questioned turning down any wage increase. "I supported the `yes' vote," John Peterson, a Miami food service worker, told the Militant. "I think we should get as much money as we possibly can because we never know how long we're going to have a job."

There are other potential fights brewing in the airline industry as well. At American Airlines, the Allied Pilots Association rejected a contract proposal in a 61 to 39 percent vote and have entered a 30-day "cooling off" period that will end February 15.

Meanwhile, at USAir, pilots, flight attendants, and IAM- organized ground workers are being asked to take concessions and make sacrifices in order to make the airline profitable. The company wants to set up a separate "low-cost" operation, dubbed US2, for 40 percent of its operations, with deep cuts in wages and other concessions, such as longer flying hours for pilots, from those employees shifted to US2.

Janice Lynn is a utility worker at United Airlines and member of IAM Local Lodge 1759. Janet Post, a food service worker at United Airlines in Miami and member of IAM Local Lodge 368, contributed to this article.  
 
 
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