Tiger Demands More Pay Cuts

Financially troubled Flying Tiger Line has asked its 2,200 machinists for a three-year, 15% wage cut as part of a program to reduce costs at the Los Angeles air cargo carrier.

The company demanded the wage concession and a $10-million reduction in benefits during two days of negotiations with machinists last week, according to a source close to the negotiations. Talks broke off without reaching an agreement, and no new talks are scheduled, the source said.

The package of concessions demanded from machinists would save Flying Tigers, the world’s largest air cargo carrier, about $23 million yearly, based on an average machinists salary of $40,000. The company said it wants the reductions to take effect on Jan. 1., the source said.

Lawrence M. Nagin, senior vice president and general counsel for Flying Tigers, declined to comment on the negotiations. Louis R. Schroeder, president and general chairman of International Assn. of Machinists district 141, which represents the Flying Tiger workers, couldn’t be reached.

Flying Tiger Line recently won concessions worth $37 million yearly from its 650 pilots, who agreed to a 3 1/2-year, 25% wage cut and a $10-million reduction in benefits. Pilots agreed to the concessions on Nov. 27, after Flying Tiger’s board of directors threatened to sell the company piecemeal unless an agreement was reached.