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UAL Corp. confirmed Tuesday that it has reached a deal with its pilots for more labor concessions. “The negotiating committee for the Air Line Pilots Association has reached a tentative agreement with the pilots, and the master executive committee will meet on Thursday in Chicago to review that agreement,” said David Kelly, a spokesman for the union. If the association’s MEC accepts the deal, the group will bring it before its members for a full vote, he said. ALPA and the parent of United Air Lines Inc. provided no details on the agreement. Robert Mann of R.W. Mann & Co., which follows the airline industry, said a term sheet ALPA had circulated among its members disclosed that the carrier was asking for an 18 percent cut in pay and benefits, plus stricter work rules. The airline had given its pilots union until Jan. 7 to reach an agreement on concessions under the threat of filing an 1113 motion by that date, according to an ALPA information hotline for United pilots. An 1113 motion allows companies in Chapter 11 to seek court approval to reject collective bargaining pacts. Elk Grove, Ill.-based United has said it must cut another $725 million in labor costs. ALPA, along with the International Association of Machinists and Aerospace Workers and the Association of Flight Attendants-CWA, agreed to $2.5 billion in labor concessions in 2003. It’s unclear how far along United is in talks with IAMAW, AFA and the Aircraft Mechanics Fraternal Association. After United lost its last bid to win a government guarantee for a $1.6 billion loan on Jun. 28, the airline warned it would have to make deeper cuts to all of its expenses. If the carrier can’t reach a deal for additional cutbacks with its other unions, a hearing on the 1113 motion is set for Jan. 10 to Jan. 14 in the U.S. Bankruptcy Court for the Northern District of Illinois in Chicago. UAL, which stopped making payments to employee pension plans in July, wants to terminate those plans. This move would effectively turn them over to the Pension Benefit Guaranty Corp. A motion to terminate the plans will be heard in the January hearings, said Jean Medina, representative for United. United also needs a nod from the PBGC to terminate the pension plans. UAL filed for Chapter 11 on Dec. 9, 2002, in the Chicago court. Copyright �2004 TDD, LLC. All rights reserved.

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