Saturday, August 31, 2002
Pilots criticize United finance plan
The Associated Press
CHICAGO - United Airlines' proposal to lop $9 billion off its labor costs in the next six years as part of an emergency financial restructuring got a harsh initial review from its most powerful employee group: pilots.
The world's No. 2 carrier says the labor-related reductions - $1.5 billion a year in wage and benefit cuts, canceled raises and other changes - would provide the bulk of $2.5 billion in annual savings it has targeted in order to stay out of the red and out of bankruptcy.
But representatives of the pilots, who control more than half of employees' majority stake in the airline, reiterated their criticism Friday of the new terms as unacceptable and unrealistic.
Union spokesman Herb Hunter said the depth of the cuts goes far beyond what the pilots union tentatively agreed to this summer - a 10 percent reduction saving the airline $520 million over three years - and amounts to a rewrite of the entire contract.
The pilots are not disclosing specific details but suggest it's too steep a price to pay for United to achieve its immediate goal: a $1.8 billion federal loan guarantee from the Air Transportation Stabilization Board, which insists on severe cutbacks.
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