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BREAKING NEWS ~ US bankruptcy judge nixes United deal with pilots

[JURIST] Reuters is reporting that a US bankruptcy judge has rejected a United Airlines labor deal with pilots which would have saved the struggling airline some $180M per year. The pilots union ratified the deal only yesterday by a vote of 76.8 percent to 23.1 percent. Labor groups has critized the agreement because it imposed a 15% pay cut and allegedly paved the way for United to eliminate its traditional pension plan. Background information on United Airlines' restructuring is available from United here. The rejection of the UA agreement comes a day after a bankruptcy court canceled a collective bargaining agreement between rival US Airways and its machinists, achieving similar annual savings for that airline.

12:02 AM ET - AP now has a story on the bankruptcy ruling here. The text of the ruling is not yet available online.

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