NEWS: United Airlines Targets Pensions and Contracts

Clear back in February of this year United Airlines was rumbling about wanting to cut its pension plan and throw it to the already overburdened Pension Benefit Guaranty Corp. United CEO Glenn Tilton has reiterated that desire today. But wait...there's more! The carrier also made it clear that contracts need to be replaced to cut costs and that current conditions have left no room for "compromises" or "half measures". Psssst...The mechanics are the odd man out right now.

United's mechanics are in a tough spot. The union is trying to work the best deal they can for their members but the delay has weakened their position. United has put them on notice telling them that they have until a hearing on May 11. If no deal has been reached then United will have the court terminate their contract. Tick tock tick tock.

Frankly it would not surprise me to see United to make another pass at cost cutting across the board including another look at labor contracts. But they will have to be careful. The flight attendants are threatening a mutiny as they are under the impressions that perhaps management is not giving back in equal measure.