NYTimes.com Article: United's Flight Attendants Accept $314 Million in Cuts

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United's Flight Attendants Accept $314 Million in Cuts

April 30, 2003
By EDWARD WONG






The flight attendants' union at United Airlines voted
yesterday to accept wage and benefit cuts worth $314
million a year over the next six years.

The union, which represents 19,000 workers, finished voting
in the afternoon and quickly announced the results,
bolstering United's effort to restructure in bankruptcy
court and emerge as a company that can compete with
low-cost airlines.

Another important unionized labor group, the machinists,
were expected to finish their voting last night at
midnight. United is seeking concessions of $794 million a
year from them and they could prove more of a problem for
the company, because one subset of the union - the
mechanics - has traditionally been the most militant
employee group.

United is seeking $2.56 billion in annual givebacks from
its workers.

The contract ratification by the flight attendants is the
second significant labor victory this month for United, a
unit of the UAL Corporation. On April 11, 82 percent of the
Air Line Pilots Association voted to accept concessions
equal to $1.1 billion a year.

The pilots have the most to lose from having their labor
contracts negated by a bankruptcy judge, should United ask
for that.

The Association of Flight Attendants said yesterday that
more than 63 percent of eligible attendants at United
voted, and three-quarters of those supported the new
contract.

"The sacrifices borne by the front-line employees in
ratifying concessions that will affect our wages, benefits,
pensions and work rules will have a harsh effect on our
work lives and our families," Greg Davidowitch, president
of the United flight attendants' union, said in a statement
yesterday.

Flight attendants make an average of $32,000 a year, said
Sara Dela Cruz, a spokeswoman for the union. The new
contract would force attendants to take a wage cut of 9
percent, in addition to cuts in vacation time, health
benefits and work rules.

Flight attendants will be able to take part in a
profit-sharing plan.

Chris Brathwaite, a spokesman for United, said that "the
ratification of these agreements by the A.F.A. is an
important step in providing the cost improvements,
productivity changes and operational flexibility United
needs to emerge from bankruptcy and succeed in the
long-term."

The International Association of Machinists also held a
broad membership vote yesterday. That union is divided into
two smaller bargaining units - one represents five labor
groups that include baggage handlers and the other
represents mechanics. The first group, encompasses 23,000
workers, voted on $445 million a year in concessions.

The second group, representing about 10,000 workers, is the
more unpredictable one. Last Thanksgiving it surprised
executives and the other unions by voting against
concessions. That was one of several factors that
contributed to United filing for bankruptcy protection
early the next month.

Yesterday, the mechanics considered concessions of $349
million a year over six years. They would take a 13 percent
wage reduction, pay 20 percent of their health insurance
costs and perform under different work rules that would
increase productivity.

United is working on a tight time line to get in place the
concessions. The airline has said it needs to have the cuts
start tomorrow because it must meet certain cash liquidity
conditions to obtain part of $1.5 billion in financing that
four lenders agreed to give it right before it filed for
bankruptcy protection.

If the unions do not vote in favor of the concessions, the
airline has said it will ask the bankruptcy judge to allow
it to void the labor contracts.

The judge has scheduled a court hearing for this morning.


http://www.nytimes.com/2003/04/30/business/30AIR.html?ex=1052711306&ei=1&en=54c9ecb5b05e30d5



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