United Airlines reports on progress to limit involuntary layoffs

Airline Industry Information, Oct 17, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

United Airlines has declared that 322 of its employees represented by the International Association of Machinists (IAM) have opted for the Early Out and Voluntary Furlough programmes as of 17 October, under an agreement between the union and the airline.

United said that the significant reduction in capacity announced earlier this year led to positions in the company needing to be decreased by 7,000. The airline has been working with the unions which represent its employees in an effort to agree feasible solutions to keep the number of involuntary layoffs necessary to a minimum.

More than 1,500 flight attendants represented by the Association of Flight Attendants have accepted a voluntary layoff programme, removing the need for flight attendants to be given involuntary layoffs. The company also offered layoff mitigation to pilots and mechanics, of whom around 200 pilots and 100 mechanics have agreed to take up the offer to date. Participants who are eligible will be given severance payments based on their length of service, along with travel benefits.

The airline said that involuntary layoffs among IAM employees have been decreased by almost 40% since the programmes were introduced in July and again in September.

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