It's been a turbulent week for United Airlines employees.
On Tuesday a federal bankruptcy judge allowed United, San Mateo County's number one employer, to cut 120,000 employee and retiree pensions. On Wednesday, the company was back in court proposing additional cuts to two of its labor contracts.
It's a one-two punch for mechanics at United's maintenance base at San Francisco International Airport, the company's largest maintenance hub. United is asking the unions to make $180 million in additional cuts. The company wants to trim a total of $725 million in annual labor costs in an attempt to eliminate its bankruptcy.
While United is trying to head toward recovery, retirees and employees are left wondering about their futures.
"It's very disappointing. One thing you count on when you retire is your medical coverage," said John Kensigner, a retired mechanic living in San Mateo.
Kensigner retired eight years ago after 36 years of service. He doesn't suspect he'll lose much of the money he collects as part of his pension, but his medical coverage will disappear. The cut doesn't surprise him - it angers him.
The company's fall into bankruptcy is often associated with the attacks of Sept. 11, however Kensigner remembers the slow deterioration started long before that. It started with selling portions of the company and contracting out services to other companies, he said.
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Kensigner remembers a kinder, gentler United. The company was like a family and provided work for generations of San Mateo County residents. Kensigner is a second generation United retiree.
"If my old man knew what was going on he would be spinning in his grave because [United] used to be a friendly company," Kensigner said.
Meanwhile, mechanics and baggage handlers at SFO are preparing for rallies early this week. Union members approved a strike by 94 percent and are closely watching national negotiations before pulling out the picket signs, said Carl Finamore, president of the International Association of Mechanics, Local 1781.
United Airlines and unions representing its mechanics and baggage handlers edged closer to long-term contract agreements Friday as a bankruptcy court trial on the carrier's bid to terminate existing pacts moved closer to conclusion, according to an Associated Press report.
The airline and unions are working against a rough deadline of sometime this week, before Judge Eugene Wedoff issues a ruling that could trigger a threatened strike by United's workers if it authorizes the breaking of tentative contracts, the AP reported.
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