Monday, Nov. 10, 1958
United Front
The six biggest U.S. airlines, threatened by labor troubles with the International Association of Machinists and other unions, this week agreed on a united front to battle the unions. The pact, the first of its kind in U.S. industry, was spurred by a strike of the Machinists, which shut down Capital Airlines over demands for an hourly raise of 42-c-. The Machinists have also threatened to strike Trans World Airlines and Eastern. All six airlines--American, Capital, Eastern, Pan American, T.W.A., United--have agreed to put on extra flights along routes they also serve to take care of the passengers of any struck line. The lines plan to make no profit on the overflow traffic. They will turn over all earnings, after taking out operating expenses, to the strikebound line. The pact's major immediate effect: competitors United, American, Eastern, T.W.A. will give Capital enough funds to cover its $50,000-a-day loss in operating revenue. But if CAB disapproves the agreement, Capital will have to return the handouts.
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