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December 5, 2009

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Machinists’ pay cuts imposed

Friday, Jan. 10, 2003 | 9:54 a.m.

CHICAGO -- A federal bankruptcy judge today imposed temporary 14 percent pay cuts on United Airlines' 37,000 machinists, the only employee group to have rejected the carrier's proposal for emergency reductions.

The action, which United requested, will help it meet strict financing requirements in bankruptcy by saving an estimated $70 million a month when combined with lower interim wages for other union workers.

Equally as important, it gives the airline and its unions additional time to negotiate long-term contracts by ensuring sharply lower labor costs through May 1.

Pilots agreed earlier this week to take 29 percent pay cuts, flight attendants to 9 percent wage reductions and dispatchers and meteorologists to 13 percent.

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