Ueberroth, Eastern Unions Reach Pact, Take It to Judge : Would End Acquisition Roadblock

WASHINGTON —  Unions at Eastern Airlines and a management group headed by former baseball commissioner Peter Ueberroth have reached agreements that would remove a major obstacle to the sale of the strikebound carrier, a labor source said today.

The source, speaking on the condition of anonymity, said a formal announcement would be made later today before U.S. Bankruptcy Judge Burton Lifland in New York. Lifland must approve any sale of the airline.

Lifland began a closed meeting with the principals at mid-day in bankruptcy court but there was no immediate word on the progress of the talks, which have been held under a news blackout.

Ueberroth and his group have been seeking more than $200 million in concessions from three unions and Eastern’s non-contract employees, but there was no immediate word on what, if any, pay-backs are contained in the tentative accords.

The source declined to discuss the agreements further.

The tentative agreement followed a weekend of secret talks in Washington between the unions and representatives of Ueberroth, who last week reached agreement to buy Eastern from Texas Air Corp. for $464 million. Ueberroth could have called off the deal if agreements were not reached with the unions by midnight Tuesday.

Will Sell Eastern Shuttle

Ueberroth has said he will go ahead with plans to sell the lucrative Eastern Shuttle to New York developer Donald Trump for $365 million.

The unions involved are the International Assn. of Machinists, the Air Line Pilots Assn. and the Transport Workers Union.

The IAM struck Eastern on March 4 after refusing to accept more than $120 million in wage and other concessions demanded by Texas Air, Eastern’s parent company. The other unions have accepted concessions in the past, but honored IAM’s picket lines.

The unions brought Eastern operations to a virtual halt, and the airline filed for protection under the bankruptcy laws on March 9, five days after the walkout began.

Eastern since the strike has been seeking court orders requiring the pilots to return to work. A federal district judge in Miami was scheduled to issue a ruling on the request today, but his office said the judge had granted a request from Eastern and the pilots union that he not issue the decision today.

The weekend talks were held under the guidance of attorney David Shapiro, who is serving as court-appointed examiner of the airline under an order issued by the bankruptcy court.

While union officials said they believed they could come to terms with the Ueberroth group, they expressed concerns about its plans for the carrier.

Union officials also questioned statements by Texas Air Chairman Frank Lorenzo that Eastern could be operating within 24 hours of completion of the sale to Ueberroth.

Eastern has been flying a skeleton schedule since the IAM walkout.

Officials from two of the unions, noting that the majority of Eastern’s planes have been grounded for more than a month, said it would take some time to inspect them.