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Reuters <http://money.excite.com/img/logo_reuters.gif>
United Air machinists say reject pay cut
Tuesday July 9, 11:14 AM EDT
CHICAGO, July 9 (Reuters) - The machinists union at UAL Corp.'s (UAL
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=UAL>
) United Airlines said on Tuesday it has formally rejected management's
proposal for a 10 percent wage cut, potentially endangering a deal
already struck with pilots.
"We've rejected a request for any participation" in United's financial
recovery plan, Joseph Tiberi, a spokesman for the International
Association of Machinists and Aerospace Workers, told Reuters.
United, the No. 2 U.S. airline, has asked the federal government to back
$1.8 billion of a $2.0 billion loan as part of the recovery plan. The
carrier, which lost $2.1 billion in 2001 and another $510 million in the
first quarter of this year, has said it needs concessions from all
employee groups.
Pilots recently agreed to a 10 percent pay cut, but flight attendants
also said they will not give concessions.
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