United Seeks OK to Reject Contracts
From Bloomberg News
UAL Corp. asked a Bankruptcy Court judge for permission to seek the rejection of labor contracts by May 1 unless employee unions agree to permanent wage reductions.
Temporary cuts designed to save the airline about $70 million a month took effect in January and will expire May 1 without new agreements. UAL’s United Airlines is seeking to reduce what were the industry’s highest labor costs. U.S. Bankruptcy Court Judge Eugene Wedoff can let United impose contract terms if no agreement is reached by the deadline.
Chicago-based UAL’s shares rose 1 cent to 86 cents on the NYSE.
From Bloomberg News
