Pay restrictions imposed on U.S. air controllers

Jun. 6, 2006. 01:00 AM

The U.S. Federal Aviation Administration has imposed contract terms that cut pay for new air-traffic controllers and limit wage increases for current staff. The new contract for the 15,000 air controllers will save $1.9 billion (U.S.) over five years, the agency said. It imposed the new terms yesterday after it couldn't reach an agreement with the workers. President George W. Bush wants the agency to reduce its reliance on the U.S. treasury. The agency said it would cut pay 30 per cent for new employees, who would earn $93,000 after five years. Pay for current controllers would rise 9.4 per cent in five years, to $140,000.