Bankruptcy judge orders 14 percent pay reduction for United machinists; union had rejected cuts

<br>CHICAGO (AP) _ A bankruptcy judge Friday imposed temporary 14 percent pay cuts on United Airlines' 37,000 machinists, the only employee group to have rejected the company's proposal for emergency

Thursday, January 9th 2003, 12:00 am

By: News On 6

CHICAGO (AP) _ A bankruptcy judge Friday imposed temporary 14 percent pay cuts on United Airlines' 37,000 machinists, the only employee group to have rejected the company's proposal for emergency cost reductions.

The action, which United requested, will help it meet strict financing requirements in bankruptcy by saving an estimated $70 million a month when combined with lower interim wages for other union workers.

Equally important, it gives the airline and its unions additional time to negotiate long-term contracts by ensuring sharply lower labor costs through May 1.

Pilots agreed earlier to take 29 percent pay cuts, while wages will be reduced by 9 percent for flight attendants and 13 percent for dispatchers and meteorologists.

Bankruptcy Judge Eugene Wedoff said the short-term pay reductions were ``essential'' to continue United's business and to ``avoid irreparable damage to its estate.''

The machinists' pay cuts take effect immediately.

United said it must reduce wages by $2.4 billion a year through 2008 if it is to emerge from Chapter 11 bankruptcy protection, which it hopes to do sometime next year.