United Airlines' financial restructuring was put further in doubt last week after it failed to secure pay concessions from its major unions. US Airways, meanwhile, has won conditional approval for a $900 million government loan guarantee, but needs to secure wage concessions from unions to satisfy the Air Transportation Stabilization Board's (ATSB) loan guarantee conditions.
United's latest setback saw the International Association of Machinists (IAM) vetoing a proposed 10% pay cut for its 36,000 United members. The decision, after an earlier agreement to defer $498 million of back pay, followed a rejection by the Association of Flight Attendants.
United has agreed $430 million of pay cuts from employees and another $520 million in a tentative agreement with the Air Line Pilots Association.
Meanwhile, US Airways is seeking around $950 million in pay cuts. Last week it neared agreement with pilots on $465 million in pay concessions, after tentative deals with flight attendants and two out of three branches of the Transport Workers Union. But the IAM and the Communications Workers of America have yet to agree deals.
Source: Flight International
