Thanks for the tip, NickP 1K


Shares of UAL sank $3.86, or 21 percent, to $14.77 last week, after CEO James Goodwin issued his surprising warning.

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United workers' dream fades Employee ownership turns ugly with layoffs, pay cuts

...But even those still working face belt-tightening. One way the airline says it can stave off bankruptcy-court reorganization is by getting billions in concessions from its unions to help secure a $1.8 billion federal loan guarantee. The unions have tentatively offered $5.8 billion in pay cuts over 5 1/2 years. Over the weekend, the pilots union tentatively agreed to 18% pay cuts worth $2.2 billion.

Monday, stock of United parent UAL jumped 24% to $3.18 as Wall Street cheered the news about the pilots. But for United workers, there's little to cheer.

About 18,000 mostly newer employees have been laid off. United just announced plans to ax another 1,250. Many of the remaining 81,500 employees worry about supporting their families today and salvaging their retirement savings for tomorrow.

United's layoffs are a snapshot of a much bigger industry dislocation. There were 53,000 fewer people, about 10% of the total workforce, employed in the airline industry in the third quarter compared with the same period last year, according to the Air Transport Association, the airlines' trade group. Airlines have announced another 20,000 cuts, including 6,700 at American, 8,000 at Delta, and 2,100 at US Airways, which already is in bankruptcy protection. More are inevitable...

http://www.usatoday.com/usatonline/2...5/4591559s.htm



[This message has been edited by doc (edited 11-05-2002).]