At United, Staff Is Up But Pay Is Down

Employee ownership at United Airlines is bringing an unexpected boon: more jobs. The airline will hire 1,700 new workers--many of them for its new discount operation, United Shuttle, whose West Coast takeoff is set for Oct. 1. While the move runs counter to United's stringent cost-cutting campaign, the airline can't afford to lose revenue from staff shortages, says new Chairman Gerald Greenwald. The catch: Newly hired pilots and mechanics will earn, on average, 15% less than they would have gotten before the employee buyout was approved on July 12.

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