Pilots union bosses back United's offer

CHICAGO -- Union leaders on Saturday urged United Airlines pilots to join flight attendants in accepting the bankrupt airline's proposal to keep their contracts in exchange for voluntary pay cuts.

Under the company's proposal, made Friday in U.S. Bankruptcy Court, the unions would keep their contracts at least through spring if they agree to wage reductions and if the court agrees to force concessions from non-cooperating unions.

The machinists' union said Friday it would object to a proposed 13 percent pay cut.

The plan calls for pilots and flight attendants to forfeit raises; all four unions, including flight dispatchers and meteorologists, are also asked to accept pay cuts by Jan. 8.

Otherwise, United would proceed with request that the court dissolve its contracts.

On Friday, the Elk Grove Village, Ill.-based carrier warned in court papers that "denying United's motion would sound the company's death knell."

In a news release, the executive committee of United's branch of the Air Line Pilots Association said it approved the company's proposal of a 29 percent pay cut. The agreement will be sent to the pilots for ratification in the next 10 days.

Union leader Paul Whiteford stressed that what the leadership approved is an "interim agreement."

"We are not interested in participating in United's broader labor reform initiatives without clear economic justification or rationale," he said.

The leadership of United's Association of Flight Attendants branch also urged its members to support the proposal.

United has until Feb. 15 to cut costs or it could lose the remainder of the $1.5 billion in interim financing a group of banks extended the carrier to allow it to restructure under Chapter 11 bankruptcy protection.

The carrier says it must reduce wages by $2.4 billion a year through 2008.

The International Association of Machinists and Aerospace Workers rejection of $1.5 billion in wage concessions late last month was widely viewed as the death blow to United's effort to land $1.8 billion in federal loan guarantees and avoid bankruptcy.

The Air Transportation Stabilization Board rejected the carrier's proposal Dec. 4, and it filed for Chapter 11 on Dec. 9.

United -- the world's second biggest airline -- says its labor costs are the highest in the industry. The unions already have agreed on about $1 billion in yearly cuts.