Alaska Airlines reached an arbitrated cost-cutting agreement with its pilots that both sides are expected to honour despite a last-minute legal protest by the pilots union. But the carrier was unable to reach a concessionary agreement with baggage handlers at its Seattle/Tacoma hub. It replaced the 475 members of the Machinists union with non-union Menzies Aviation contract workers in a move that could save it $13 million or more a year. The union sued over the outsourcing, which Alaska says is allowed under its contract.
Source: Airline Business