CITY REJECTS UNITED'S CONTRACT IN UNION FIGHT.

Byline: Rick Orlov Daily News Staff Writer

In an unprecedented move, the City Council on Friday rejected a 23-year lease for United Airlines at Los Angeles International Airport because one of its subcontractors is faced with a union organizing drive.

The council sent the matter back to the Airport Commission to change the contract to require United - which is investing $70 million in upgrading facilities - and its subcontractors to abide by the city's living wage law as well as its worker retention ordinance.

``The commission will assure that the contract applies to all of United's subcontractors,'' Councilwoman Jackie Goldberg said.

``It's important we put this to rest because the United lease is important to United, it's important to the airport, and it's important to Southern California.''

United Airlines in January agreed to follow the city's living wage ordinance - the first airline to do so. Under living wage, the company must pay workers a minimum of $7.39 per hour plus benefits or $8.64 an hour without benefits.

Alan B. Wayne, regional director of public affairs for United Airlines, said the company has agreed to all the provisions involving its operations.

``All we are asking is that this be done as expeditiously as possible,'' Wayne said. ``We hope that when the commission takes this up on June 15, they also will approve our cargo lease that has the same provisions.''

Wayne said he could not comment on those provisions involving subcontractors, other than to note they were under negotiation.

For the past year, one of its subcontractors - Argenbright Security Inc. - has had an ongoing dispute with the Service Employees International Union and its efforts to unionize the company's workers.

Several of the company's workers have appeared before the City Council or its committees over the past several weeks asking that the United contract be used as an example to other airlines that hire Argenbright.

The workers have a powerful ally in Miguel Contreras, who is an airport commissioner and the executive secretary-treasurer of the Los Angeles County Federation of Labor, AFL-CIO. He recently called the Argenbright unionization effort one of his top priorities in the county.

Despite his dual role, Contreras has participated in the contract process and offered assurances the Airport Commission will rewrite the lease.

Contreras' wife, Maria Elena Durazo of the Hotel and Restaurant Employee Union, Local 11, has been equally active in the effort. She was recently arrested in an LAX demonstration.

A day before the City Council rejected United's lease, a federal district judge ordered all airlines using San Francisco International Airport to follow that city's law requiring them to offer benefits to domestic partners.

In Los Angeles, United is in a difficult situation because it wants to use LAX as one of its hub airports and is undertaking an ambitious, $70 million construction program at terminals 6, 7 and 8, which will include a new facility for processing international travelers.

Celest Bottors, a spokeswoman for Argenbright, said they were aware of the council action but felt in a difficult spot in dealing with the unions.

``We're sure the council is doing what they think is right,'' Bottors said. ``We've asked the unions to conduct an election through the National Labor Relations Board. For some reason they have refused to do that.''

Bottors also denied accusations the company has harassed or fired any workers for union activities.

``We are a pro-employee company,'' Bottors said. ``It is simply not true that anyone has been fired or harassed.''

Vivian Rothstein of the Respect at LAX group said the offer did not apply to the groups now seeking to represent the workers.

``It's a form they are taking that would lock us up for months,'' Rothstein said.