CHICAGO -- United Airlines says it needs to cut annual labor costs by 20 percent over the next six years, which could mean a paycut for many employees, 7NEWS reported.

It's part of a plan by the airline to reduce operating expenses so they can qualify for $1.8 billion federal loan guarantee and avoid bankruptcy court.

Some of the labor savings may result from work-rule changes but paycuts are also a big part of the equation, the station said.

On Thursday the machinists union said that United was seeking $450 million in pay and benefit cuts from machinists.

The proposal calls for mechanics, ramp workers and other employees represented by the International Association of Machinists and Aerospace Workers to take 10 percent pay cuts and forego raises negotiated earlier this year for 2003 and 2004, IAM officials said.

According to documents posted on its unions' Web sites, District 141 members -- ramp, customer contact and cabin service employees -- are being asked to provide a $265 million yearly cost reduction and take 9.5 percent pay cuts. District 141-M members -- mechanics and aircraft cleaners -- are asked to reduce costs by $185 million, including 10.4 percent wage cuts.

Spokesman Joe Tiberi said union leaders were reviewing the proposed terms. He added that the union doesn't feel any discussions about a recovery plan should take place until United hires a permanent chief executive officer to replace interim CEO Jack Creighton.

Creighton announced Aug. 14 that United might have to file for Chapter 11 bankruptcy protection this fall if it doesn't reach major cost-saving agreements by mid-September with its employees, vendors and lessors.

The company's proposed new terms for its pilots and flight attendants were not available, and spokesmen for those unions declined comment.

United spokesman Joe Hopkins said the airline had no immediate comment about the machinists' proposal.

So far, the pilots union is the only employee group willing to accept a temporary salary concession in order to help United recover financially, 7NEWS reported.