Layoffs Anticipated from United – Continental Merger

With the pending $3 billion merger between United and Continental Airlines, thousands of layoffs are being anticipated by employees of both companies.

“some reductions in the salaried and management work force” said Glenn Tilton, CEO of United Airlines parent company UAL Corp.

It has been agreed upon by both United and Continental to keep two labor representatives on the new company’s board. This pact was not presented to Air Line Pilots Association (ALPA), a powerful group representing the interests of both company’s pilots.

To the dismay of the labor unions, both airlines have reduced capacity from recession-induced cuts: United by 7.4 percent and Continental by 5.2 percent last year.