=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2004/06= /24/BUG0G7AS051.DTL --------------------------------------------------------------------- Thursday, June 24, 2004 (SF Chronicle) United workers fearful of cuts/Unions say they'll try to help airline exit = bankruptcy David Armstrong, Chronicle Staff Writer Employees of bankrupt United Airlines are willing to help the company but worry they may be asked to make even more painful concessions as the carrier seeks to cut costs and snare a big federal loan guarantee to ease its exit from Chapter 11. United, the nation's no. 2 carrier and the dominant airline at San Francisco International Airport, said Wednesday it had scaled back its request for a $1.6 billion loan guarantee from the Air Transportation Stabilization Board to $1.1 billion. The earlier request was rebuffed twice, most recently last week. A United spokesman declined to comment on other details of the revised proposal from UAL Corp., United's parent company. The Wall Street Journal, citing sources that have seen the application, reported that UAL had offered to repay any loan in five years instead of seven years, planned to seek $500 million in private funds and would strive to cut its operating costs even more. That last point has caught the attention of United employees, who have already conceded millions in salaries, benefits and pension payments to UAL. The company employs 11,000 workers in Northern California, down from 20,000 in 2001, and 63,000 worldwide, down from 100,000 in 2001. "Whenever airline management thinks about cutting costs, they automatically look to labor," said Dawn Deeks, a spokeswoman for the Association of Flight Attendants. She said her union had heard nothing specific from UAL in recent days. "The flight attendants have already given up $340 million a year," Deeks said. "I think management really needs to look at other options." Herb Hunter, a spokesman for the Air Line Pilots Association, also said his union had not seen recent specific proposals from management. "We're taking it one step at a time," Hunter said. "All the unions have given up a great deal. There's not a whole lot that remains." Hunter said United employees were proud of increased passenger traffic, a better on-time record, fewer consumer complaints and an upgrade in customer service since United entered Chapter 11 bankruptcy protection 18 months ago. Even so, Hunter said, "I do think we're short some employees. Customers have to wait awhile for reservation agents, and there is sometimes one gate agent where there should be two." Joe Tiberi, a spokesman for the International Association of Machinists and Aerospace Workers, said the union had not received any recent UAL proposals for givebacks and would have no comment unless it did. United workers support the company's bid for a loan guarantee, Hunter said. "We all want this to happen," he said. "We believe it's the best chance we've got." E-mail David Armstrong at davidarmstrong@xxxxxxxxxxxxxxxx --------------= -------------------------------------------------------- Copyright 2004 SF Chronicle