United Airlines Seeks to Dissolve Labor Pacts

UAL Corp.’s United Airlines filed a motion in U.S. Bankruptcy Court on Friday seeking to scrap labor agreements as it aims to slash costs but said leaders of four of its six unions had agreed to pay cuts.

The airline, which has pursued cost cuts to satisfy its lenders since filing for bankruptcy protection Dec. 9, said it had reached tentative deals on wage cuts with the unions representing its pilots, flight attendants, dispatchers and meteorologists.

Representatives of the pilots and flight attendants stopped short of calling the proposals tentative deals but said they were in discussions with the airline.

UAL is seeking to save more than $70 million a month through interim pay cuts of 29% from its pilots, 9% from flight attendants and 13% from machinists as of Jan. 1, according to court papers. It also wants flight controllers and transport workers to take a 13% cut.

In court papers, United, the world’s No. 2 airline, said it was willing to withdraw Friday’s motion to void its labor contracts if key unions ratified proposed pay cuts by early January.

The company said it would seek court authority to impose pay cuts on the International Assn. of Machinists, which has not agreed to any concessions.

A spokesman for the Air Line Pilots Assn. said union leaders would meet soon to consider the company’s proposal.

UAL shares closed up 9 cents at $1.38 on the New York Stock Exchange.