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United's contract talks with ramp workers suspended

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Posted 2:15PM on Wednesday 20th March 2002 ( 23 years ago )
CHICAGO - Contract negotiations between United Airlines and its 23,000 ramp and public-contact workers broke off Wednesday, with the union asking federal mediators to formally declare an impasse -- clearing the way for a possible strike. <br> <br> The International Association of Machinists and Aerospace Workers said compensation remains the key sticking point of the talks, which began 27 months ago. <br> <br> &#34;Regrettably, the company&#39;s proposals were not industry-leading for all employees,&#34; said chief union negotiator Randy Canale, president of IAM District 141, which also represents United food service employees and security guards. <br> <br> There was no immediate comment from the National Mediation Board or United. According to the IAM, the mediator involved in Chicago talks advised both sides that additional negotiations would be scheduled soon. <br> <br> The union said it would request that the mediation board release the two sides from the talks and start the countdown on a 30-day cooling-off period, after which a strike could legally occur. It cited the contract agreement reached last month between United and its mechanics as evidence that the threat of an imminent strike can force a settlement. <br> <br> &#34;If it takes a countdown and the possibility of a strike to conclude these negotiations, we will take that step,&#34; said Robert Roach Jr., IAM vice president of transportation. <br> <br> The contract approved March 5 by mechanics, who hadn&#39;t had a raise in eight years, granted pay hikes of as much as 37 percent for the most senior mechanics. <br> <br> Ramp workers want similar increases and are concerned about the prospect of United cutbacks in the near future as the Elk Grove Village, Ill.-based carrier tries to return to profitability after posting a loss of $2.1 billion last year. <br> <br> Shares in United&#39;s parent company, UAL Corp., fell 41 cents to $15.49 in afternoon trading on the New York Stock Exchange. <br>

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