United Airlines sued over cuts, accused of violating bailout terms - Business Insider

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United workers are suing the airline for cutting their schedules to save cash, which unions say violates federal bailout terms

A labor union representing 27,000 United employees is suing the airline, alleging that the airline is violating the terms of the billions in aid it accepted through the federal coronavirus bailout package.

By accepting payroll support, airlines were required to agree not to furlough or lay off workers before September 30, nor cut pay rates. Executives at major US airlines have said they expect layoffs after that date. The International Association of Machinists and Aerospace Workers, or IAM, which represents fleet service and passenger service workers at United, filed an injunction in the United States District Court for the Eastern District of New York on Tuesday.

"We will monitor the participation rates and report back to you on the program's performance at the end of June," Hard said. "Without a high level of participation, we will have no choice but to reconsider a mandatory reduction to 30 hours for our full-time employees."On Monday,

 

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