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Guest Canmech

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Guest Canmech

Hi Conehead,

Here is the article on the United Airlines situation.Although I believe that United management eventually might request concessions from all the unions.Once again, Airline management goes to the weakest link in the fence...'The I.A.M.'.

I feel for the United Mechanics you have fought hard over the past year through work to rule campaigns,overtime time bans,demonstrations and were so close to a standard setting deal only to have it halted by the current economic situation.

Here it is...

...'Friday November 30, 2:40 am Eastern Time

United expected to ask employees for wage cuts-NYT

NEW YORK, Nov 30 (Reuters) - UAL Corp.'s (NYSE:UAL - news) United Airlines, the No. 2 U.S. air carrier, will probably ask its employees to accept a pay cut, according to people close to the matter, in what may be an industry trend, the New York Times reported on Friday.

During a meeting on Thursday in Washington called by federal mediators, the airline told the International Association of Machinists that it was ``looking for sacrifices from all the employees'' to stem daily losses of $15 million and regain profitability, the newspaper said in its online edition.

The negotiations with United mechanics will be the first major labor contract to be concluded since September 11, establishing a new pattern for the industry, it said.

The Chicago-based company said that it was working on a plan to present to employees in a few weeks, the sources said, according to the New York Times.

``United is not asking the I.A.M. for concessions, not yet anyway,'' said Scotty Ford, the president of the machinists local who was at Thursday's meeting, ``But I expect that they will,'' the newspaper said.

Air travel crumbled after the September 11 attacks scared passengers from flying, worsening many airline's already precarious financial situation. Carriers have already cut costs by cancelling flights and laying off workers.

John W. Creighton Jr., UAL's new chief executive, called on union leaders to study the company's books and make suggestions, the New York Times said.

``As we get more input back, we will begin to develop the plan,'' said Andy Plews, a United spokesman, it said.

The airline industry has focused on United because at $1.8 billion through September 30, its losses this year have been by far the largest, the newspaper added.

Last week, the National Mediation Board, which oversees labor relations in the airline industry, began the 30-day countdown after which United's 15,000 mechanics and related workers can walk off the job, a move that could shutter the carrier right before Christmas, the New York Times said.

The newspaper added that the board also recommended that President Bush use his powers under the Railway Labor Act to appoint a special emergency board, adding that the White House agreed, assuring that holiday travel will not be disrupted...'

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