Alaska Airlines broaches wage cuts with unions

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Alaska Airlines broaches wage cuts with unions

SEATTLE (AP) =97 Alaska Airlines has opened talks with representatives of=20
five unions to discuss possible wage cuts as the West Coast regional=20
carrier tries to slash costs and regain profitability. The airline, which=20
has not been profitable for the past three years amid an overall industry=20
slump, wants to reduce expenses by about 15% to 7.25 cents per air seat=20
mile, excluding fuel costs, by 2005, vice president Louis Cancelmi said.=20
Over the past two years, the company has instituted or identified some $100=
=20
million in savings but needs concessions from workers to meet the goal, he=
=20
said. The company would not specify exactly what concessions it might seek=
=20
from unions representing about 8,500 employees, including pilots, flight=20
attendants, mechanics, dispatchers and clerical workers. The company said=20
it would seek the biggest cuts from those whose salaries are significantly=
=20
higher than the industry average. Alaska Airlines, a subsidiary of Alaska=20
Air Group of Seattle, would like to reach agreements with its unionized=20
workers sometime this fall, Cancelmi said. "We want to work collaboratively=
=20
with our workers so that we can continue to be the strong growing airline=20
that we have been," he said, adding that the talks have just begun. Tom=20
Lynch, a local official with the Transport Workers Union of America, told=20
the Seattle Post-Intelligencer the move was no surprise. "I thought the=20
company presented its case professionally," Lynch said. "We'll see what=20
happens." Other union leaders were not reachable for comment late Tuesday.

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