Judge orders temporary pay cuts for UAL machinists
Friday January 10, 9:19 am ET
CHICAGO, Jan 10 (Reuters) - A U.S. bankruptcy judge on Friday ordered temporary 13 percent pay cuts for unionized machinists at United Airlines, buying the airline more time to negotiate broad concessions at its entire unionized work force, said a source familiar with the matter.
United, a unit of UAL Corp. (NYSE:UAL - News) and the world''s second largest airline, filed for bankruptcy on Dec. 9.
Since then, four of the carrier''s five unions agreed to temporary pay cuts to help the airline reorganize. But the International Association of Machinists, representing about 37,000 workers, argued the airline had not shown why the cuts were needed now.
U.S. Bankruptcy Judge Eugene Wedoff issued his ruling this morning, agreeing the pay cuts were necessary.
Friday January 10, 9:19 am ET
CHICAGO, Jan 10 (Reuters) - A U.S. bankruptcy judge on Friday ordered temporary 13 percent pay cuts for unionized machinists at United Airlines, buying the airline more time to negotiate broad concessions at its entire unionized work force, said a source familiar with the matter.
United, a unit of UAL Corp. (NYSE:UAL - News) and the world''s second largest airline, filed for bankruptcy on Dec. 9.
Since then, four of the carrier''s five unions agreed to temporary pay cuts to help the airline reorganize. But the International Association of Machinists, representing about 37,000 workers, argued the airline had not shown why the cuts were needed now.
U.S. Bankruptcy Judge Eugene Wedoff issued his ruling this morning, agreeing the pay cuts were necessary.