[P][FONT face=Times New Roman size=3]The United Airlines Labor Coalition has agreed on a total employee concession of $5.8 million over a 5.5-year period. Today ALPA and the company reached a tentative agreement that will provide the company with $2.2 billion in labor savings over the 5.5-year period.[/FONT][/P]
[P][FONT face=Times New Roman size=3]Since United and its alliance partner US Airways are both applying for a federal loan guarantee, an interesting comparison can now begin to be made regarding each loan guarantee application.[/FONT][/P]
[P][FONT face=Times New Roman size=3]At the time of its accord US Airways had about 4,750 active and 1,070 furloughed pilots. The pilots provided a $465 million concession for 6.5 years or a total cost savings of $3.02 billion. For active pilots at the time of signing, the total pay and benefit reduction was about $98,000 per year.[/FONT][/P]
[P][FONT face=Times New Roman size=3]Today United has about 8,200 active and 844 furloughed pilots. The pilots have agreed to provide a $400 million concession for 5.5 years or a total cost savings of $2.2 billion. For active pilots at the time of reaching a tentative agreement, the total pay and benefit reduction is about $49,000 per year.[/FONT][/P]
[P][STRONG][FONT face=Times New Roman size=3]Thus, the US Airways average annual reduction is about twice as much per pilot than at United. Reports indicate the UA pilot W-2 cut is 18 percent and the US pilot cut is 26 percent, with elimination of Airbus overides, A-330 pilots receiving a greater reduction, and supervisor pay reduced an additional 6 percent. [/FONT][/STRONG][/P]
[P][FONT face=Times New Roman size=3]For the other active employees, US Airways has about 32,000 personnel who took and average pay and benefit reduction of $406 million per year. Per employee this is an average annual reduction of $12,700 per year.[/FONT][/P]
[P][FONT face=Times New Roman size=3]At United the non-pilot employees must come up with a $3.6 billion in savings for 5.5 years or about $653 million per year. United has about 70,000 other than pilot employees who average annual pay and benefit concession will be about $9,300 per year.[/FONT][/P]
[P][FONT face=Times New Roman size=3][STRONG]Thus, the US Airways average annual reduction is about one-third as much per non-pilot employee than at United.[/STRONG][/FONT][/P]
[P][FONT face=Times New Roman size=3]Chip[/FONT][/P]