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Airline cuts nonunion pay

Tuesday, Dec. 14, 2004 | 9:26 a.m.

CHICAGO -- United Airlines took a first step toward achieving the additional labor savings it seeks in bankruptcy, imposing wage reductions on its 8,500 nonunion employees, including an 11 percent pay cut for CEO Glenn Tilton and other top executives.

The airline, owned by UAL Corp., told employees on a company hot line Monday that the cuts will account for $112 million of the $725 million a year in labor savings it needs.

They do not include an additional 4 percent temporary reduction in salary that will take effect with the permanent cuts on Jan. 1 and remain in place until United emerges from bankruptcy. The nation's No. 2 carrier has not specified a target date for its exit from Chapter 11, but with the industry still in financial turmoil that is now not expected until next fall.

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