NEW YORK (CNN/Money) -
United Airlines has asked its mechanics to take a 10.4 percent pay cut, the mechanics' union said Thursday, as the No. 2 U.S. airline tries to cut costs and avoid bankruptcy.
The union, the International Association of Machinists, had no comment about the proposal. Earlier Thursday, mechanics at bankrupt US Airways rejected a similar proposal from that airline, even as baggage handlers voted to accept a pay cut.
The union representing United Airlines' customer service, ramp and reservation workers also said the airline has asked for 9.5 percent pay cuts from its members in order to save $265 million yearly.
Earlier this year, United mechanics rejected another proposal seeking a 10 percent pay cut. A union spokesman told Reuters on Thursday the mechanics thought it would be best to wait to discuss the proposals until United has a permanent CEO.
United 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.
United, a unit of UAL Corp. (UAL: down $0.20 to $3.08, Research, Estimates), is seeking to cut $185 million in labor costs by Sept. 16 to help it secure federal loan guarantees and avoid joining US Airways in bankruptcy.
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