UPDATE 1-LATAM Airlines mechanics in Peru hold off on two-day strike

Thu Jun 26, 2014 12:37pm EDT

(Adds reaction from company)

LIMA, June 26 (Reuters) - LATAM Airlines aviation mechanics in Peru called off a two-day strike scheduled to start on Thursday after late-night negotiations produced a possible deal, a union leader and the company said on Thursday.

Union leader Freddy Nakashima said members will gather Saturday to vote on a proposal made by LATAM's local unit, Lan Peru.

"Today work goes on as normal," Nakashima said.

LATAM Airlines, Latin America's largest airline, said it expects a firm deal soon.

"The company and the leadership of the union...have reached an agreement that should be signed this Monday," the company said in an emailed statement.

But Nakashima said if the majority of union members reject the company's offer, new dates for a strike would be set, though no sooner than 10 days because workers would need to secure new authorization from the labor ministry.

The union said it had voted to hold the strike this week to coincide with high air traffic dates during the World Cup.

The sporting event ends on July 13.

The mechanics union, pushing for better wages, has said a strike would disrupt all flights in Peru as well as others in the region.

The company has said it is prepared to ensure operations continue as usual in the event of a mechanics strike.

(Reporting By Mitra Taj; Editing by Sofina Mirza-Reid)

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