United flight attendants ratify contract

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Sorry if the message already been posted.....been having trouble with my
email the last few hours, the messages were not coming in to the apporaite
mailbox and disappearing. in to cyber space.......should be fixed now!

United flight attendants ratify contract

CHICAGO (AP) ? United Airlines closed in Tuesday on its goal of cutting
labor costs by a third in bankruptcy when flight attendants ratified a
contract saving United $1.9 billion over six years. Unions representing
mechanics and baggage handlers ? the only remaining United groups not to
have ratified ? voted separately on whether to approve contracts calling
for similar concessions. Results weren't expected until late Tuesday night
or early Wednesday morning. Seventy-five percent of eligible flight
attendants voted to ratify the contract, the Association of Flight
Attendants announced. Turnout was 63%, suggesting the reluctance with which
the painful cuts were accepted. Union president Greg Davidowitch said the
results were necessary but no cause for celebration. "Today marks an
immense step toward stability and security for our airline and our jobs,"
he said. However, he added, the sacrifices made by employees "will have a
harsh effect on our work lives and our families."

Approval by all three groups, following earlier approval by pilots, flight
dispatchers and meteorologists, would seal United's quest to lower its
annual labor tab by $2.56 billion through 2008, or $15.4 billion in total.
But unlike past labor dramas at United and the recent one at rival American
Airlines, the outcomes ? while important ? won't make or break the
carrier's recovery effort. If any group votes down the tentative agreement,
United plans to head to bankruptcy court on May 15 to get a judge to impose
its preferred terms. The airline called the flight attendants' vote an
important step in providing the cost improvements, productivity changes and
operational flexibility it needs to emerge from bankruptcy and succeed
long-term. "We understand and appreciate the sacrifices the members of the
AFA have to make," United said in a statement. "Their difficult choices
have given additional momentum to our collective efforts to transform
United into a viable competitive airline and to build a more secure future
for our employees."

The 18,000 flight attendants, who voted from April 16 through midday
Tuesday, accepted an agreement calling for 9% wage cuts, changes in work
rules and fewer holidays. The pact would save United $314 million a year.
Two union groups from the International Association of Machinists and
Aerospace Workers held one-day balloting. Members of IAM District 141,
representing 23,000 ramp, customer service and retail workers, were being
asked to approve 13% pay cuts, a 20% co-pay on health insurance and
increased use of part-time help ? a package that would save United $2.6
billion through 2008. The 12,000 mechanics, members of District 141-M,
voted on 13% wage cuts and an overhaul of work rules adding up to $2.09
billion in total savings through 2008. United's 8,000 pilots already have
ratified the biggest chunk of the savings ? a total of $6.6 billion,
including 30% wage reductions and significant work-rule changes. The
world's second-biggest carrier gained the leverage of bankruptcy court to
impose cuts when it filed for Chapter 11 bankruptcy protection on Dec. 9,
and already has used it to get temporary cuts that expire Wednesday.

Still, United needs to avoid labor dissension if it is to emerge
successfully from Chapter 11 and become profitable again. Airline analyst
Ray Neidl called it important for United to get consensus agreement from
all its unions. "It's a service business, and if the employees do it
voluntarily it bodes a little bit better for the reorganization than if
they have to go to the court and have it mandated," said Neidl, of Blaylock
and Partners. "You can be a very low-cost airline, but if you don't have
employee cooperation you're still not going to make it."


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