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Eastern Airlines plans to reduce its labor costs.

January 22, 1987

The airline's new management plans wage reductions of 30% to save the financially troubled carrier an estimated $490 million a year, President Phil Bakes said. Leaders of two Eastern unions criticized the announcement as part of an effort to intimidate employees under the new ownership of Texas Air Corp., and they said they had no plans to take cuts on valid contracts. Bakes declined to speculate on what action the Miami-based carrier might take if the unions refuse to accept cuts.

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