Thursday, November 20, 2008

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Frontier nearing concession deal for dispatchers

 




Frontier Airlines has reached a tentative agreement with the Transport Workers Union of America about wage and benefit cuts for aircraft dispatchers, which the bankrupt carrier says will help save $400,000.The union's membership, which consists of 16 Frontier dispatchers, still must vote on whether to accept the agreement. The vote is scheduled to close on Oct. 10, according to bankruptcy court documents that Frontier filed Thursday."It's another important step in our Chapter 11 reorganization process," said Frontier spokesman Steve Snyder. "This will help us meet the cost targets outlined in our business plan."Under the agreement, dispatchers would see an 8 percent cut in pay through 2010. Their wages would then start recovering in phases through fall 2012. Frontier also will stop matching employee 401(k) contributions.The carrier said it is still negotiating with its pilot group about concessions. It also has asked the bankruptcy court for permission to break its contract with the Teamsters - which represents mechanics, aircraft cleaners and other related workers - and force concessions on the group.