Tuesday, September 30, 2008
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Sun Country to halve workers pay for the rest of 2008
<DIV class=entry-content><DIV class=inside-copy>Minnesota-based leisure carrier Sun Country Airlines is the latest U.S. carrier to run into financial turbulence. Describing the carrier as "low on cash as it enters one of the slowest travel seasons of the year," the Minneapolis
Star Tribune writes Sun Country "told workers on Monday it would cut their pay in half beginning next week and reimburse them in 2009." However, two of the carrier's biggest unions –- those representing pilots and flight attendants -– have yet to sign off on that plan. The company floated the idea to union leaders on Friday before announcing the move Monday, according to the
Star Tribune.
"We disagree with the unilateral action taken by the company" in which the company went forward with announcing the pay deferral, attendants' union spokesman Joe Battaglia tells the
Star Tribune. "We will use all available avenues to protect our membership." The pilots union declined to be interviewed by the
Star Tribune, though a union official said in an e-mail to the paper that "we have made no commitments to management." Sun Country CEO Stan Gadek tells the
Star Tribune he hopes to win the unions' support, but adds: "I intend to go forward with it regardless. … I've got to run a business here." For his part, Gadek says in a letter to workers that he will "work without pay until this crisis is resolved."
So, what landed Sun Country in its current predicament? The
Star Tribune writes "Sun Country's move came as its embattled chairman and majority shareholder, Tom Petters, resigned Monday as chairman and CEO of Petters Group Worldwide as well as from roles in its affiliate companies, including the airline. Petters is the main target of a federal fraud investigation."
The St. Paul<EM>