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United attendants reject plan
Flight attendants join pilots in rejecting No. 2 U.S. airline's call for deep cuts in labor costs.
August 30, 2002: 2:08 PM EDT

NEW YORK (CNN/Money) - United Airlines flight attendants Friday scathingly rejected the airline's call for employee pay cuts, part of United's effort to fend off bankruptcy.

"United hasn't turned a profit in two years and management's solution is to point a finger at the employees who keep the airline in the air," the Association of Flight Attendants said in a statement. "The future of our airline is at stake, and that's the best United management can do?"

Earlier Friday, United pilots also rejected Thursday's announcement by the No. 2 airline that it wants to cut $1.5 billion per year in labor costs as part of an effort to cut total annual costs by $2.5 billion.

United warned earlier this month that it would have to seek bankruptcy court protection without employee concessions and federal loan guarantees. The cost-cutting measures are meant to help United get a $1.8 billion loan guarantee from the Air Transportation Stabilization Board, a government agency.

United and its pilots' union had previously reached a tentative agreement on a 10 percent pay cut that had been estimated to save the airline $520 million over three years. But that agreement was never put to a rank-and-file vote.

Earlier this year, United mechanics rejected another proposal seeking a 10 percent pay cut. A union spokesman told Reuters Thursday the mechanics thought it would be best to wait to discuss the latest proposals until United has a permanent CEO.

United, a unit of UAL Corp. (UAL: down $0.13 to $2.92, Research, Estimates), is still seeking a replacement for Chairman and CEO Jack Creighton, who was backed by the union and had served just six months on the job when United announced he was leaving.

Nonunion employees already have had a 5 percent pay cut imposed upon them.

The AFA, which represents 26,000 United flight attendants, said it doubted United's problems had to do with labor costs. It said United's contract with its attendants was adjusted every year to reflect industry averages, which should help it get financing from the government.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.