Officials of the 22,000-member flight attendants union have already agreed to place proposals for new pay cuts before their membership. Pilots began voting December 30 on a revised contract that includes a whopping 29 percent salary cut.

The crisis-ridden carrier, which filed for Chapter 11 bankruptcy on December 9, says that if it can’t gain agreement for new concessions from its 83,000 employees, it will ask the bankruptcy court to throw out existing union contracts. The company cites its deal with Bank One, J.P. Morgan Chase, and other banks for a $1.5 billion loan, granted on the proviso that it slash its monthly expenses by February 15.

The bankruptcy court judge said that he will rule by January 10 on whether to permit United to void its contracts. Officials of the International Association of Machinists have announced plans to file a suit in opposition to the motion.

United employees have only just come out of a previous round of concession demands. In late 2002 the company won agreement from pilots, flight attendants, and ramp and customer service workers to accept cuts ranging from 7 percent to 18 percent on the grounds that it needed $5.2 billion in concessions over five years in order to receive federal loan guarantees.

Union officials, along with representatives of the pilot’s organization, repeated the bosses’ arguments that the profitability of the company was of overriding concern and should take precedence over union contracts.

In a surprise for the company, on November 27 the 13,000 mechanics and cleaners in the International Association of Machinists (IAM) voted down United’s proposal. Days later the government-appointed Air Transportation Stabilization Board (ATSB) denied the company request for $1.8 billion in secured loans. The application for Chapter 11 protection quickly followed.

The airline’s bosses are now demanding more than $12 billion--in cuts over the same period of time--more than twice the original figure. United’s chief financial officer Jack Brace stated December 30 that this round of cuts is "only a piece of the overall package of changes we are looking for." Other "cost-saving measures" are under discussion, he said.

On January 3 United announced that it would lay off nearly 1,500 management and salaried employees by mid-month. Since September 2001 the carrier has struck more than 20,000 workers from its payroll, a fifth of the workforce.

Meanwhile, union officials at US Airways, which has also sought the shelter of Chapter 11 bankruptcy, have signed on for $200 million in concessions in addition to the $840 million already agreed to last summer. Additional concessions and work rule changes have been voted up by pilots. They are now subject to approval by mechanics, baggage handlers, and flight attendants.  
 
 
Front page (for this issue) | Home | Text-version home