United’s Attendants Reject Pay-Cut Plan

Leaders of United Airlines’ flight attendant union rejected a company proposal seeking a 5% wage cut, jeopardizing parent UAL Corp.’s tentative agreement on concessions from pilots.

A tentative agreement reached this week with pilots on a 10% pay cut is contingent on United securing concessions from other unions. UAL has said it needs to reduce costs to stem losses and to help win support for a federal loan guarantee. The deadline to apply for the guarantee is June 28.

Shares of the Chicago-based airline fell 44 cents to $11.95 on the NYSE.