United's Cuts Ire Workers In the wake of a bankruptcy judge's ruling that United Airlines can terminate its employee pension plan, other U.S. airlines might respond in a similar fashion. The industry is seeking to cut costs as it reels from high fuel prices and stiff competition.
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Workers May Strike over United's Pension Cuts

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Workers May Strike over United's Pension Cuts

Workers May Strike over United's Pension Cuts

Workers May Strike over United's Pension Cuts

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United Airlines is continuing talks with two of its unions in an effort to avoid a strike over its plan to terminate the existing contracts. Workers are angry over reduced pension benefits they will receive under a bankruptcy court ruling last week.

Under that plan, United will be allowed to end its pension programs, shifting the burden of nearly $10 billion onto the federal agency that insures retirement plans. As a result, United workers stand to receive less money, and may be forced to work longer.

Other airlines, seeking to cut costs as the industry reels from high fuel prices and stiff competition, are reportedly considering similar measures.

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