You have been sent this message from psa188@juno.com as a courtesy of the W= ashington Post - http://www.washingtonpost.com=20 =20 =20 =20 To view the entire article, go to http://www.washingtonpost.com/wp-dyn/art= icles/A61975-2002Dec16.html =20 Union: United Lenders Demand Labor Cuts =20 By Dave CarpenterCHICAGO –– The lenders that are enabling Unite= d Airlines to keep flying during bankruptcy are requiring the carrier to sl= ash annual labor costs by $2.4 billion in the next two months, according to= its flight attendants' union.<P>That total would more than double the appr= oximately $1 billion in yearly cuts that unions agreed to this fall as part= of its failed bid for a $1.8 billion government loan guarantee.<P>United s= pokesman Joe Hopkins said Monday the airline had no comment on the cost-cut= ting process.<P>But the Association of Flight Attendants told its members t= hat United management informed negotiators for the airline's unions on Frid= ay that the restructuring plan calls for $2.4 billion in labor savings.<P>"= Those cost reductions must be secured by mid-February," the union said in t= he update on its Web site, posted late Friday. "Thus, things will happen ve= ry fast."<P>Spokesman for the flight attendants' and Machinists' unions did= not immediately return phone calls Monday.<P>Pilots' union spokesman Steve= Derebey said his union was going over management's proposal but declined t= o discuss it, saying the carrier's pilots themselves had not yet been told.= <P>"Our financial and legal advisers are studying it," he said. "We'll be w= orking with the company and our advisers to decide what to do about it."<P>= United, the world's second-biggest airline, had warned in filing for Chapte= r 11 bankruptcy protection on Dec. 10 that painful cuts were coming that wo= uld go well beyond its previous financial recovery plan, which called for $= 5.2 billion in labor cutbacks by 2008. It must meet strict benchmark requir= ements showing financial progress throughout bankruptcy or risk defaulting = on its $1.5 billion in interim financing.<P>Mechanics, who rejected a tenta= tive agreement for 7 percent pay cuts last month, are now being asked to ta= ke 13 percent reductions, according to a communique that went out to its me= mbers.<P>The company also has informed the union representing mechanics tha= t it wants to revise the terms of health care plans and change work rules i= n order to improve productivity and efficiency.<P>"United indicated that th= eir proposal was a starting point for further discussions," Scotty Ford, pr= esident of District 141-M of the International Association of Machinists an= d Aerospace Workers, said in the communique on Saturday.<P>"District 141-M = is now reviewing the term sheets with our financial and legal advisers. We = also expect to discuss the proposed terms with the United Airlines union co= alition."<P>Shares in United parent UAL Corp. fell 28 cents to $1.47 in lat= e-morning trading on the New York Stock Exchange.<P>–––<P>On= the Net:<P>http://www.united.com<P>