United targets 'archaic' work rules

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United targets 'archaic' work rules

CHICAGO (AP) =97 The ink was barely dry on United Airlines' bankruptcy=
 filing=20
last December before CEO Glenn Tilton publicly welcomed the opportunity to=
=20
get rid of "costly, restrictive" union work rules. With other airlines=20
watching closely, Tilton might get his wish. Using the leverage afforded by=
=20
bankruptcy court, United is on the verge of securing contracts that could=20
sweep many of those rules aside and set the stage for change throughout the=
=20
industry. Analysts say archaic and unproductive work rules that pile extra=
=20
costs onto airlines' already high labor tabs can't last much longer at a=20
time the industry is mired in its biggest financial crisis ever, made worse=
=20
by the war in Iraq. But United's Chapter 11 overhaul, on top of related=20
actions taken in bankruptcy by smaller US Airways, is expected to hasten=20
the process and provide the impetus for rivals American, Delta and=20
Northwest to make similar changes long blocked by their unions. By cracking=
=20
down on such practices as featherbedding, padding of vacations and high pay=
=20
for pilots' and flight attendants' down time, United hopes to achieve labor=
=20
savings just as significant as employees' double-digit wage cuts. "It would=
=20
set an incredible precedent for the industry," Joshua Marks, chief of staff=
=20
at George Washington University's Aviation Institute, said of pending=20
contract changes at the nation's second-largest airline. The inevitable=20
changes in work rules, he said, will allow an industry notoriously=20
top-heavy in labor expenses to have leaner work forces, lower costs and=20
higher productivity. Employees will pay a price in additional work and=20
lower pay but get to see their airlines stay in business and, in most=20
cases, keep their jobs.

United and spokesmen for all of its major unions declined to comment about=
=20
work rules, citing the need to keep the contract process confidential. But=
=20
in detailed court filings, the airline has documented a long series of=20
rules it intends to eliminate or rewrite using the bankruptcy process. If=20
employees don't reach general agreement =97 as the pilots' union did=20
tentatively on Thursday =97 the company can have a bankruptcy judge impose=
=20
its terms May 1. That ensures the end, one way or another, of many work=20
rules that date to an era when the industry was federally regulated. It=20
means a senior pilot at United will no longer be able to make more than=20
$200,000 a year while working six days a month, as is possible under the=20
existing contract. A pilot won't be able to parlay a scheduled 10-day=20
vacation into an entire month off by deliberately bidding for routes during=
=20
that period, which was the case in December with a 747-400 captain simply=20
exercising his contractual rights. United would be able to use lower-paid=20
employees to wave in and push away planes from gates at its hubs instead of=
=20
employing 472 skilled mechanics for those duties, as it does now.

Among myriad other changes, the airline also intends to tighten expensive=20
provisions concerning relief pilots on international flights and generous=20
sick-leave and scheduling procedures, and have pilots and flight attendants=
=20
spend fewer layovers at downtown hotels and more at less expensive ones=20
near airports. Darryl Jenkins, head of George Washington University's=20
Aviation Institute, said many of the rules wouldn't be tolerated in any=20
other industry. But the unmatched clout of unions to bring airlines to a=20
halt has prevented their removal =97 until now. "This is where you're going=
=20
to make or break your reorganization, with work rules," he said. Tilton and=
=20
United acted on that realization as soon as United landed in bankruptcy=20
after three years of economic turbulence, bad management decisions and=20
labor turmoil. "Anachronistic work rules that result in pay for time not=20
worked and more employees on the payrolls than are necessary to perform the=
=20
required work must give way to the realities of doing business in today's=20
ultra-competitive environment," the airline said in a March 17 court motion=
=20
to void its contracts.
"Restrictions on United's ability to maximize its revenues by deploying=20
more and larger regional jets or pursuing strategic alliances with other=20
carriers must fall by the wayside. And limitations on the company's rights=
=20
to furlough employees for whom there is no work or to outsource functions=20
that can be done by outside vendors at a fraction of United's current cost=
=20
must end," it said.

Continental Airlines was the first to use Chapter 11 coupled with the=20
authority of a bankruptcy judge to trim work rules. But it took a repeat=20
trip to bankruptcy and a years-long slump to get the results it wanted =97=
=20
something United would like to avoid by getting negotiated contracts rather=
=20
than forced ones. United's more than 8,000 pilots, who last year made an=20
average $205,978 and worked nine days a month, are being asked to make the=
=20
deepest sacrifices. They will vote next month on whether to ratify an=20
agreement slashing their pay by 30% and making further cuts via changed=20
work rules. "United has very skilled pilots but one of the lowest pilot=20
utilization (productivity) rates of any carrier," said independent airline=
=20
analyst Scott Hamilton. "United wants them to work harder for their money,=
=20
instead of semi-work for their money." The company hopes that when pilots=20
start voting on the contract next weekend, they remember that the $1.1=20
billion in annual labor savings could make the difference between whether=20
United prospers or liquidates. "The upside for our employees is that=20
survival of United will mean jobs, paychecks, health benefits and=20
ultimately pension checks, which everyone wants," spokesman Joe Hopkins=
 said.


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