(Chicago-AP) -- United Airlines says its flight dispatchers union has ratified a cost-cutting deal to help the carrier avoid bankruptcy.
Union president Mike Alpers says the agreement calls for an
eight percent cut in current pay levels.
The union also agreed to extend its current contract until January 2008.
Alpers says the wage givebacks should save United two million dollars a year over the next five years.
United is the dominant carrier at Denver International Airport.
The reductions are key to its application for federal loan
guarantee, which it says is needed to avoid a bankruptcy filing.
The airline wants to slash more than five billion dollars in
labor costs over five and a-half years as part of a 14 billion
dollar financial recovery package.
The union represents 181 Chicago-area flight dispatchers.