TheDenverChannel.com










Money

United Unions Submit Proposal For Cutting Costs

5 Unions Agree To $5 Billion In Cuts Over 5 Years

POSTED: 6:29 a.m. MDT September 26, 2002
UPDATED: 2:00 p.m. MDT September 26, 2002

Saying they will not let the airline fail, union leaders at United Airlines have agreed to let the struggling company make huge cuts in labor costs. But is it enough?

The unions say they're ready to agree to $5 billion in cuts over five years, which includes savings from management, but the airline had said that it had been looking at $9 billion over six years to help avoid bankruptcy.

United has said it needs major concessions to secure a government loan guarantee.

The unions say their wage-cut and cost-savings proposal will allow the carrier to become $2 billion to $3 billion more profitable.

At least one industry analyst said he's not sure the rank and file is being sufficiently generous.

"The management said they needed the full amount of cost cutting," said Ray Neidl, an airline analyst at Blaylock and Partners. "I'm a little doubtful that there's room for much maneuvering."

A coalition of United unions delivered the proposal to United Airlines Chairman Glenn Tilton Wednesday evening.

Details of their proposal have not been released.

The five unions represent pilots, flight attendants, mechanics, baggage and ramp workers and flight dispatchers.

United's employees own 55 percent of the stock in UAL Corp.

Tilton has not announced how much he wants in cuts, but his predecessor wanted $1.5 billion a year in labor givebacks.

The machinists union had said that United was seeking $450 million in pay and benefit cuts from machinists.

Officials with the International Association of Machinists and Aerospace Workers said United was asking them to take 10 percent pay cuts and forego raises negotiated earlier this year for 2003 and 2004.


Links We Like
Sponsored Content
Herpes simplex is more common than you’d think. Learn to recognize the 5 types. More

Your bedroom is your sanctuary. Make it a stylish sanctuary with these twelve tips. More

So you want a cool job huh? Find out what you could be making to do something you love. More

Are your aging parents becoming a threat to themselves and others on the road? Find out if it's time to take away the keys. More

Don’t be left out. Make the switch to Digital TV.

Credit Center

3 People Who Check Your Credit - Landlords, Employers & Insurers. Be the 4th.See Your Credit Score & Report Now for $0.

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage5.60%5.70%

48 Mo New Car Loan7.01%6.83%

$30k Home Eq Loan7.94%8.19%

6 Month CD2.67%2.85%
Help! I don't understand!
All Rates


Sponsored Links

Stock Quotes

GET A QUOTE
Enter Symbol

Smart Savings Guide

What can you do to protect your pocketbook in a tough economy? Find ideas big and small in our Economic Survival Guide. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters