United Airlines holds breath as vote nears on wage cuts

The mechanics union must approve the contract to keep the company's restructuring on track.
CHICAGO (AP) -- United Airlines has bought itself more time with debtors in its bid to avoid bankruptcy court. Now it's putting its fate in the hands of its mechanics and a government assistance program.
The nation's No. 2 carrier said Monday it was deferring payments on about $900 million in debt now due by mid-December, in hopes it meets conditions for a federal loan guarantee by then.
The next crucial test comes Thursday, when its 13,000 mechanics vote for the second time in eight days on whether to ratify a tentative agreement calling for wage cuts of 6 percent to 7 percent plus four fewer paid vacation days.
The mechanics must participate in companywide concessions in order to preserve United's $5.2 billion package of companywide labor reductions -- the foundation of its pitch for government help.
Deal is modified
Under a modified agreement brokered early Monday with the mechanics' union leaders, contract terms on benefits were revised slightly to try to gain approval and CEO Glenn Tilton pledged to resolve a variety of workplace issues mechanics are unhappy about.
If that's enough to reverse the outcome of last week's vote, which failed by 57 percent to 43 percent, United then must quickly win approval for the $1.8 billion loan guarantee it says is necessary for it to get a $2 billion private loan.
Without the guarantee and loan, the airline has said it will be forced to take its restructuring into federal bankruptcy court because it doesn't have enough money to pay off its debts.