- Nov 10, 2005
- Total Time
Maybe I've missed others, but this is the first time I've seen an industry news article posted as the "headline" article for us to read. Seems a little mafia-like, if you ask me.
United Continental Holdings Inc. (UAL)?s plan to furlough 685 flight attendants shows how the world?s second-largest carrier still struggles with multiple labor contracts more than three years after its creation in a merger. The furloughs, effective April 1, involve employees from the former stand-alone United Airlines, Megan McCarthy, a spokeswoman, said in an interview today. At the same time, new attendants are being hired to work on planes from the former Continental Airlines, the other half of the combined company.
The disparity stems from the lack of a single labor agreement covering all attendants at the Chicago-based airline, hampering efforts to boost efficiency and cut $2 billion from annual operating costs. Some other union workers also remain on separate contracts following the 2010 merger between UAL Corp., the parent of the old United, and Continental Airlines Inc.
?The $2 billion savings target is not a foregone, easy solution,? said Savanthi Syth, a Raymond James Financial Inc. analyst in St. Petersburg, Florida. ?Having those two groups separate does complicate things.?