Members of the union representing mechanics at bankrupt United Airlines have given a lukewarm reception to a tentative deal that would cut their wages by 3.9 percent, a union leader said on Tuesday.

If the tentative agreement with United's parent, UAL, wins ratification by the union membership, the mechanics will take a reduction in their wages, overtime pay, and sick pay as well as a reduction in the number of their paid holidays, said LaMont Ray, president of the Chicago-area Aircraft Mechanics Fraternal Association.

A membership vote was set to conclude on May 31.

"Right now we just started getting feedback from the floor and it's mixed," Ray said. "We're not happy about it. It's a concessionary agreement. It's the best the negotiators could get for us."

AMFA reached the five year deal on Monday night. The tentative agreement, which also requires approval by a bankruptcy judge, grants United about USD$96 million in average annual savings. AMFA members are currently working under a temporary 9.8 percent wage cut. That deal is set to expire at the end of May.

It was unclear what effect the tentative deal would have on an ongoing trial in which United is seeking authority to void collective bargaining agreements with AMFA and another union that represents some of the airline's ground workers.

On Monday, United Chief Financial Officer Jake Brace said a settlement with one or both unions would not necessarily halt the trial. The airline has said repeatedly, however, that it prefers consensual agreements with its workers rather than a court-imposed solution.

The trial was set to resume on Thursday afternoon and was expected to conclude this week.

United, in bankruptcy since December 2002, previously reached concession deals with unions but has said it needs an additional USD$2 billion of cost-cuts, including USD$725 million from labor, because of high fuel prices and heavy competition that has kept air fares low.

Last week, Judge Eugene Wedoff approved a United deal with US pension insurers to terminate the pension plans. United expects to save about USD$645 million a year under the plan.

The AMFA deal features a defined pension contribution from the airline of up to 5 percent of workers' wages. It also reduces the mechanics' participation in a performance-based incentive program.

"It sounds like it's a decent deal. It's good to see that the unions are coming on board," said Stuart Klaskin of KKC Aviation Consulting in Miami. "But I get the sense that they're doing it grudgingly. I think it will be ratified by a small majority of the vote."

AMFA spokesman Richard Turk said the union has made no recommendations to its members regarding the deal. But he said the concessions were nothing to celebrate and that the union members have lost confidence in United's management team.

United has said the deal addresses AMFA's chief concerns over pay, job security, benefits and work rules.

"We're hopeful that the AMFA members will ratify the agreement. We think it meets their concerns," UAL spokeswoman Jean Medina said.

United is still seeking a concession deal with the International Association of Machinists and Aerospace Workers that would save the airline about USD$176 million in average annual savings.

IAM and AMFA have threatened to strike in defense of their contracts. The union representing United flight attendants also had promised surprise intermittent strikes if the carrier were to terminate their pensions. So far, the Association of Flight Attendants has not carried out that threat.

An arbitration hearing was scheduled for next week on the flight attendants' contract, a union spokeswoman said.