United Seeks to End Union Contracts
From Associated Press
United Airlines asked a Bankruptcy Court to terminate its union contracts if the carrier can’t get an additional $725 million in cost savings from employees by mid-January.
The nation’s No. 2 airline says it needs the additional labor concessions and the ability to drop traditional pension plans to secure financing and move out of bankruptcy protection.
The cuts would come atop the $2.5 billion United employees have already made in annual labor concessions.
United’s parent, UAL Corp., also said it was proposing a one-time 4% pay cut for all employees from Jan. 1 until the carrier exits bankruptcy protection.
