United Airlines, the second-largest US carrier, said Saturday it has reached wage-trimming agreements with four of the company's six unions as it launches a cost-saving campaign to battle its way out of bankruptcy.
Since United, the second largest US carrier, declared bankruptcy on Dec. 9, it has been working with employee unions to make cuts that will allow the airline to keep running, and hopefully get back on its feet financially.
The carrier made deals with unions representing pilots, flight attendants, dispatchers and meteorologists, which are expected to go to members for ratification on Jan. 8. All four unions agreed to take a 13 percent wage cut across the board.
But a fifth union -- the International Association of Machinists, representing the mechanics -- has yet to support the new agreements.
The group already rejected a pitch from United to reduce salaries before the airline declared bankruptcy.
Consequently, the carrier asked the bankruptcy court to impose lower salaries on the mechanics.
"Pay cuts proposed by United for IAM members in this arbitrary fashion will not be presented for membership ratification. The IAM will object in court to United's application for emergency wage reductions," said Randy Canale, head of the International Association of Machinists.
The salary cuts, requested by the carrier's creditors, are considered crucial. If ratified by members, they will take effect, retroactively, on January 1.
United has the highest labor costs in the industry, but revenues have slumped over the past two years as the carrier's high-end business travelers have deserted it in search of cheaper fares.
The airline said it filed a motion under Section 1113 of Chapter 11 of the US bankruptcy code Friday requesting permission to set aside its collective bargaining agreements if talks fall through.
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