The Chicago Business Journal confirmed with United that part of the airline’s deal with the International Association of Machinists, is that if these customer service workers are able to work from home, they must take a 20% pay cut.
Assuming those workers don’t quit or make the move to Chicago or Houston, the Journal estimates that this will save United around $3.3 million a year in wages. If some of these workers choose to quit rather than take the pay cut — which the Machinists union believes is the airline’s intention — that’s even more money.
As Crain’s noted last week, analysts believe that United could actually trim its entire workforce by 2,500 people and save $200 million a year. That would get the company closer to its target of shaving off $2 billion by 2017.
The Journal cites airline sources as saying that United CEO Jeff Smisek may ultimately want to consolidate all of the company’s customer service in one center in Houston.
by Chris Morran via Consumerist
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