=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/2004/09= /02/BUGVJ8I4AQ1.DTL --------------------------------------------------------------------- Thursday, September 2, 2004 (SF Chronicle) UAL says it may shed staff to save money David Armstrong, Chronicle Staff Writer Just a day after one of United Airlines' unions passed a bristling vote = of no-confidence and called for the ouster of the company's senior management, the bankrupt airline on Wednesday confirmed that it is considering layoffs to cut its costs. No details were forthcoming from United, where a spokeswoman refused to confirm a report published in Britain's Financial Times that United's parent, UAL Corp., was considering slashing 6,000 jobs. That would be nearly 10 percent of the airline's workforce of 62,000, already much reduced from 100,000 before the Sept. 11 terrorist attacks. United, which has lost billions since the economic downturn began in 200= 0, has extracted about $2.5 billion in yearly wage and benefit concessions from its six unions. Last month, the airline said it was likely that it would be forced to end its defined-benefit pension plans for retirees as part of its bid to save billions more and emerge from Chapter 11 reorganization. "It is clear that achieving cost competitiveness will require additional job reductions over time," said United spokeswoman Jean Medina. "But the details of how we achieve the savings we need and the potential impact on our workforce are still under discussion." She called reports citing specific numbers and timetables premature. The Financial Times cited unnamed sources it identified as "people familiar with the matter" in reporting the supposed cut of 6,000 jobs. While the report was not independently confirmed, it occasioned a strong response from the Association of Flight Attendants, which passed a strongly worded vote of no-confidence in United's management on Tuesday. Association representatives did not immediately return phone calls on Wednesday seeking comment on the purported plan to slash jobs. Ironically, United had announced on Tuesday that it plans to recall 375 furloughed flight attendants in October and November to meet staffing needs on its expanding international service, including a new daily flight between San Francisco International Airport and China's just-completed Baiyun International Airport in Guangzhou province. It was not clear whether those plans would be affected by wide-ranging j= ob cuts across the company. Joe Tiberi, a spokesman for the International Association of Machinists and Aerospace Workers, said his union has not heard from United about additional job cuts, and would have no comment until and unless it did. United has been in Chapter 11 bankruptcy protection since December 2002. Its emergence from Chapter 11, previously expected in the spring, has been postponed until 2005 by UAL management, which is seeking private financing to leave bankruptcy. United was turned down three times when it applied for federal loan guarantees this year and in 2002. E-mail David Armstrong at davidarmstrong@xxxxxxxxxxxxxxxx --------------= -------------------------------------------------------- Copyright 2004 SF Chronicle