Despite being one of the more lucrative airlines, United Airlines is feeling the effects of their yet-to-be successful merge announcing their intent to furlough nearly 700 of their junior flight attendants.
United Airlines boasted a profitable December in addition to revealing a seven-year high stock price, but their victory run seemed to be cut short after revealing on Thursday a promise to cut nearly $2 billion in costs including relieving 688 junior flight attendants of their positions temporarily.
According to Chicago Tribune, United Airlines has actually been struggling since their merge with Continental in 2010. United is still unable to settle several labor contracts steaming from over three years ago.
The company's inability to settle the longstanding labor contracts has created an uncomfortable rift between United and Continental flights where United has far too many flight attendants, while Continental has too few. The unsettled contract with United Continental Holdings Inc makes it so that only United attendants can fly on United aircrafts and the same with Continental..
"It isn't a move we wanted to make, but we have more flight attendants than we need for the operation. We have to be responsible in terms of how many people we're keeping for the good of all of our employees and for our company," United spokeswoman Megan McCarthy explained according to Chicago Tribune.
United flight attendants were offered a "cross-over program" where they could work for Continental airlines rather than be temporarily laid off, Biz Journals notes. The plan was reportedly quickly rejected by the Association of Flight Attendants.
Greg Davidowitch, president of United Association of Flight Attendants, expressed his dissatisfaction in the failure of the "cross-over program" saying, "We are disappointed that on three occasions the subsidiary United AFA rejected a voluntary crossover program that would have provided flying opportunities to hundreds of flight attendants that may otherwise be involuntarily furloughed."
The furloughs are slated to take effect on April 1.
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