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United Employees Getting Fewer Perks
Workers Will Have To Pay Service Charges On Personal Airline Tickets
POSTED: 8:22 a.m. MST December 24, 2002
UPDATED: 2:50 p.m. MST December 24, 2002
DENVER -- It was once something United employees got for free, but now they will have to pay a service charge on their tickets.
It's part of the airlines effort to cut non-labor costs by $1.4 billion.
United dropped the service charges on employees' leisure travel program several years ago but will reinstate them beginning Jan. 1.
Reinstating the service charge will save the airline $32 million a year, covering the cost of the pass program, the airline said in a recorded message to employees.
Currently, employees and retirees pay only government taxes unless they fly first class. The new service charges will vary depending on the distance of the flight.
The employee and companion travel passes are considered one of the biggest perks of working for an airline and reinstituting the charge can be considered as a reduction in benefits, albeit a minor one, United spokesman Jeff Green said.
United Airlines filed for Chapter 11 bankruptcy protection earlier this month. It is the largest airline bankruptcy in U.S. history.
It's part of the airlines effort to cut non-labor costs by $1.4 billion.
United dropped the service charges on employees' leisure travel program several years ago but will reinstate them beginning Jan. 1.
Reinstating the service charge will save the airline $32 million a year, covering the cost of the pass program, the airline said in a recorded message to employees.
Currently, employees and retirees pay only government taxes unless they fly first class. The new service charges will vary depending on the distance of the flight.
The employee and companion travel passes are considered one of the biggest perks of working for an airline and reinstituting the charge can be considered as a reduction in benefits, albeit a minor one, United spokesman Jeff Green said.
United Airlines filed for Chapter 11 bankruptcy protection earlier this month. It is the largest airline bankruptcy in U.S. history.
Copyright 2002 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
