A federal bankruptcy judge on Friday said he would rule on a request by United Airlines to void the collective bargaining agreements of two key unions on May 31.

The decision by Judge Eugene Wedoff effectively sets that date as the deadline for United to reach a deal with the International Association of Machinists and Aerospace Workers on a concessions package.

United has a tentative agreement with the Aircraft Mechanics Fraternal Association that must be ratified by union members. If the mechanics fail to approve the deal, Wedoff will decide whether to allow United to end an existing contract with those workers as well.

"We're satisfied with what the judge said," UAL Chief Financial Officer Jake Brace told reporters. "We'll remain in contact with the IAM. I think we made a lot of progress over the last few days."

May 31 is the final day of temporary labor deals UAL has with IAM and AMFA. It is also the day AMFA is scheduled to conclude voting on its tentative pact with the airline.

Attorneys for United and the IAM gave their closing statements on Friday in a trial, in which UAL seeks permission to void the labor contracts of unions with which it has no consensual packages.

United is in negotiations with the IAM, the union representing 20,000 ground workers, on a deal. The IAM has said a key sticking point in negotiations is a replacement for its defined pension plan.

A statement from IAM president Randy Canale said negotiators have been working around the clock for three days without reaching a deal.

"We will now take a brief break, recharge and resume our work of negotiating a fair and equitable agreement," Canale said. "We hope to negotiate a fair settlement, but that would require a willing partner."

The IAM contends it is being asked to provide a disproportionate amount of the airline's needed savings.

The airline has said it must extract USD$176 million in average annual savings from IAM-represented employees to achieve a total annual labor savings target of USD$700 million for five years. United said it needs the savings to exit Chapter 11.

Also on Friday, the IAM asked a federal district court to rule on the legality of a strike. The union has threatened a strike if Wedoff allows the airline to terminate its collective bargaining agreement without a deal in place.

A district judge declined to rule on the union's motion, saying the issue should be taken up next week to determine the proper venue for such a ruling.

AMFA also has threatened a strike if United is allowed to void its labor contracts.

United, in bankruptcy since December 2002, previously reached concessions deals with its unions, but said it needs an additional USD$2 billion of cost cuts.

Last week, Wedoff approved a United deal with US pension insurers to terminate employee pension plans, a move United said will save the airline USD$645 million a year. Workers, however, complain they will lose some retirement benefits.

The carrier has been struggling with high fuel prices and low air fares stemming from heavy competition.