Labor negotiations tough for United
United Airlines is in the midst of negotiations with many of its labor unions, and both sides are in a difficult position. Jeremy Hobson reports why workers may no longer wish to sacrifice for the good of the company.
The tail of a United aircraft (Paul J. Richards/AFP/Getty Images)
More on Airline Industry
TEXT OF STORY
Steve Chiotakis: United Airlines is in the midst of negotiations with many of its labor unions. It'll meet today with the union representing its mechanics. It's re-negotiating contracts that were agreed to during its bankruptcy three years ago. The latest now, from Marketplace's Jeremy Hobson.
Jeremy Hobson: Last year, it was astronomical fuel prices dogging the airline industry. Now it's a demand problem, and that hits the big carriers, like United, the hardest.
Seth Kaplan of Airline Weekly says both sides are in a difficult position as negotiations get underway:
Seth Kaplan: United's going to say look, fuel is falling, but demand is also really falling, and we don't know where things are going -- we don't have enough visibility to know that we're going to have the revenue to be able to give you the kinds of compensation that you want.
United slashed employee pay and benefits during reorganization. And Kaplan says workers are through making sacrifices for the good of the company. Even if there's a promise of rewards in the future.
Kaplan: United just can't do that kind of thing. Employees are going to look to take whatever they can get right now, because they just don't trust that management later is going to take care of them.
Still, Kaplan says a strike is unlikely. And given the current job market, workers may have to endure another delay.
In New York, I'm Jeremy Hobson for Marketplace.
Comments
Comment | Refresh
From CO, 04/14/2009
United REALLY screwed with it's unions in years past, and all along the CEO and select management at United took healthy bonuses.
UAL will always come to the blue collar worker and ask for more, they don't know any other way.
What a shame, such a fantastic airline,
doomed by it's own actions.
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.