United machinists agree to $1.5 billion in concessions By Marilyn Adams, USA TODAY With a potential bankruptcy filing looming, United Airlines and its largest labor union Wednesday announced wage cuts that could save $1.5 billion over 51/2 years. The 37,000 mechanics, ramp workers, ticket agents, reservations agents and others who belong to the International Association of Machinists will vote on the agreement next Wednesday. "The terms of this recovery proposal will help protect United Airlines, our members and their families," said IAM official Randy Canale. "Too many airlines have been forced into bankruptcy, never to return." The announcement caps weeks of feverish efforts by United and its unions to cut costs to qualify for a $1.8 billion federal loan guarantee and avert a cash crisis that could force it into Chapter 11 bankruptcy-court protection. United faces a $375 million debt payment Dec. 2 that it says it cannot pay without at least the promise of an emergency loan. Analysts have said that, without the loan, United could run out of cash in January. Like most airlines, United has had heavy losses amid the worst air-travel downturn in history. The IAM is the last union to agree to contract concessions. United's pilots approved contract concessions worth $2.2 billion over 51/2 years. Flight attendants are voting on wage cuts now. Congress established the loan-guarantee program after the Sept. 11 terrorist attacks. Wednesday's announcement was seen as positive news for United's application but doesn't assure that the Air Transportation Stabilization Board will say yes. United officials have said they hope to get some sign by Thanksgiving of whether the loan guarantee will be approved. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (chgdev) http://www.chagdev.com/ (Chaguaramas Development Authority) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************