Fri, Jan 03, 2003
It's
unlikely to be a surprise to anyone, but United Airlines will soon
be announcing layoffs, the first such announcement since its
Chapter 11 filing nearly a month ago.
Spokesman Joe Hopkins was quoted in a Tammy Williamson, Chicago
Sun-Times story as saying the airline will be figuring out
who's going home first, in "...the next few weeks."
Next week, union votes on Friday (Machinists) and Wednesday (the
other big unions) will set the stage for who's going to take cuts
now, and who's going to try to make everybody else take them, while
hoping the airlince can survive. Pilots are looking at 29%
reductions in pay; mechanics are considering 13%; FAs are thinking
about walking away with their checks' 9% lower. All but the IAM
District 141-M (Machinists) have previously agreed to pay cuts; the
IAM rejection of their revision is still a sore spot between the
mechanics and United's other unionized labor.
Management, also, has already undergone cutbacks,
in both numbers and salaries; but the largest portion of UAL's
80,000 people hold union cards, and the company considers union
help in meeting cost goals essential.
Glenn Tilton (right), UAL's straight-talking CEO, said in a
recorded message to employees, "It's critical that we immediately
identify and act upon all other cost savings opportunities that are
within our control, and we continue to press forward on that
front."
United has until mid-February to meet its first operating-income
hurdles; if things continue sour on the Machinist front, the
airline may get the bankruptcy judge to void their IAM contract a
month later. Of course, the judge will look at all the other labor
contracts, as well; but the Machinists are becoming increasingly
visible to such observation.
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