Continental Airlines Finalizes Details on Pay and Benefits Reductions for Reservations, Food Services E-mail or Print this story 16 December 2004, 5:50pm ET Pay and Benefits Reductions Reach $70 Million of the $500 Million Goal Continental Airlines (NYSE:CAL) today issued the following bulletin to update its employees on its ongoing efforts to return to profitability: Continental has finalized changes to wages and salaries, work rules, and benefits for Reservations and Chelsea employees as part of the company's previously announced $500 million reduction in annual labor costs. These reductions, which total $22 million annually, will take effect Feb. 28, 2005, and involve changes to wages and salaries, FLEX credits, vacation and holiday time, sick leave, the 401(k) savings plan and other work rule changes. The work rule changes will increase productivity, which will result in financial savings for the company. Those savings resulted in smaller wage reductions for these work groups. "We appreciate the sacrifice that our co-workers in Reservations and Chelsea have made for the company," Chairman and CEO Gordon Bethune said. "These difficult and painful decisions will enable us to be a long-term survivor." Continental announced $48 million of pay and benefits changes for management and clerical employees on Dec. 14 in employee bulletin No. 15. The combined savings of management and clerical, Reservations, and Chelsea total $70 million of the $500 million needed in annual pay and benefits reductions. Continental has communicated the details of the Reservations and Chelsea reductions with the employees of those divisions. Roger EWROPS