Wed, May 28, 2008
Airline Plans To Review Cuts In September... Assuming It
It's not quite peace in our time, but it's something. On
Tuesday, representatives with bankrupt Frontier Airlines and the
Teamsters Union announced the two sides reached a tentative
agreement on temporary wage concessions, that the airline says it
needs in order to survive Chapter 11.
"I am pleased we were able to come to an agreement with the
union leadership," said Frontier President and CEO Sean Menke. "In
challenging times like these, we need all of our employees
supporting us in this process, and this tentative agreement is an
important step in that direction."
The agreement -- which must still be approved by 430 Frontier
workers represented by the Teamsters -- is a marked departure from
the rancor that had stemmed from news Frontier Airlines executives
had negotiated severance packages for themselves should the carrier
fold, even as they sought after by the carrier's executive
In announcing the deal, however, Teamsters Local 961 president
Matthew Fazakas took a more conciliatory tone than his earlier
statements, as reported by ANN... and
advised Frontier workers to approve the agreement.
"The Teamsters Union and its members are aware of the issues
facing Frontier Airlines and the entire Airline industry," said
Fazakas. "We understand that in these tough economic times facing
the airline industry, all Frontier employees need to contribute to
the Company's future success. We are recommending that our members
vote to approve the temporary wage-reduction plan. This needs to be
a "win-win" situation" for all."
Earlier this month, Menke and other members of the executive
management team also agreed to up to 20% in wage and benefits
concessions. Frontier plans to reexamine all the employee
concessions in September based on the developing financial
condition of the company and current economic conditions.
Frontier's other two unions -- the Frontier Airlines Pilots
Association (FAPA) and the Transportation Workers Union (TWU) --
ratified agreements for those concessions last week.
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