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Airline Turbulence: United, Delta Raise Pressure on Workers for Concessions
Aired January 15, 2004 - 06:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. Two airlines are asking employees to help cut costs. But will they do it and will it work?
Carrie Lee is live from the Nasdaq market site with more.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
We're talking about United Airlines and Delta. Both of these carriers trying to persuade their unions to grant contract concessions. Now United, yesterday, said that it might ask a federal bankruptcy judge for permission to reduce the health care benefits of its 35,000 retirees. United, of course, still operating under bankruptcy protection. Also Delta is pressing its unions 8,500 pilots to grant wage and benefit cuts.
Now airlines are hoping for a traffic rebound this year. Of course they have seen a sluggish time over the past few years.
But you know these health care issues aren't just exclusive to the airlines. In fact, a new industry study out yesterday from Hewitt Associates and the Kaiser Family Foundation found that 40 or almost 10 percent of large companies surveyed said they decided last year to eliminate subsidized health benefits for future retirees. And 71 percent actually raised the share of premiums paid by current retirees who are still covered. So rising health care costs really affecting a lot of large companies across the board.
Quickly want to tell you, J.P. Morgan, one of the Dow 30, and Bank One have agreed to a $58 billion stock swap. A merger would create the second largest bank in the country behind Citigroup. J.P. Morgan shares down over 3 percent last night.
Carol, back to you.
COSTELLO: All right, Carrie Lee, many thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Workers for Concessions>
Aired January 15, 2004 - 06:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. Two airlines are asking employees to help cut costs. But will they do it and will it work?
Carrie Lee is live from the Nasdaq market site with more.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
We're talking about United Airlines and Delta. Both of these carriers trying to persuade their unions to grant contract concessions. Now United, yesterday, said that it might ask a federal bankruptcy judge for permission to reduce the health care benefits of its 35,000 retirees. United, of course, still operating under bankruptcy protection. Also Delta is pressing its unions 8,500 pilots to grant wage and benefit cuts.
Now airlines are hoping for a traffic rebound this year. Of course they have seen a sluggish time over the past few years.
But you know these health care issues aren't just exclusive to the airlines. In fact, a new industry study out yesterday from Hewitt Associates and the Kaiser Family Foundation found that 40 or almost 10 percent of large companies surveyed said they decided last year to eliminate subsidized health benefits for future retirees. And 71 percent actually raised the share of premiums paid by current retirees who are still covered. So rising health care costs really affecting a lot of large companies across the board.
Quickly want to tell you, J.P. Morgan, one of the Dow 30, and Bank One have agreed to a $58 billion stock swap. A merger would create the second largest bank in the country behind Citigroup. J.P. Morgan shares down over 3 percent last night.
Carol, back to you.
COSTELLO: All right, Carrie Lee, many thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Workers for Concessions>
