Unions Furious With Exclusion of Employees in UAL Payout

Dec 07, 2007, 00:00 ET from Association of Flight Attendants

    CHICAGO, Dec. 7 /PRNewswire-USNewswire/ -- The leaders of the three
 largest Unions at United Airlines, Mark Bathurst, Chairman of the United
 Chapter of the Air Line Pilots Association (ALPA); Greg Davidowitch, United
 Master Executive Council President of the Association of Flight
 Attendants-CWA (AFA); and Randy Canale, President and Directing General
 Chairman of the International Association of Machinists and Aerospace
 Workers (IAM), District 141, issued the following statement in response to
 the decision of UAL executives, and approved by the UAL Board of Directors,
 to give a $250 million special payout to shareholders:
     "ALPA, AFA and the IAM, representing the overwhelming majority of
 union-represented employees, are furious with the UAL Board of Directors
 and management's decision to give a special shareholder payout to the
 exclusion of employees.
     "In every venue available, we have voiced our opposition to any
 'shareholder initiative' that does not equally recognize employee
 sacrifices. We have warned management that this move is wrong for the
 business, wrong for the employees and ultimately wrong for lenders. These
 executives have pushed through their personal agenda while ignoring serious
 concerns raised by nearly every stakeholder, industry trends and the
 company's financial position. This is being done with utter disregard for
 the interests of employees and the long-term success of United Airlines.
     "The best shareholder initiative would be one that invests in the
 employees for the long-term success of United Airlines. Shareholders in the
 pre-bankrupt UAL were issued new stock in the same manner as every other
 constituency, including the employees, when United emerged from bankruptcy.
 Today, employees who lost their pensions and work longer hours for less pay
 continue to suffer the affects of the bankruptcy. Not one penny of employee
 concessions has been repaid.
     "Since United Airlines exited Chapter 11, UAL management has
 renegotiated excessive executive compensation packages for themselves and
 they have renegotiated their agreements with lenders. If they have the
 ability to renegotiate their own compensation packages, if they have the
 ability to negotiate with lenders, if they have the ability to negotiate
 with shareholders to create another management bonus, then the have the
 ability to enter negotiations with us."

SOURCE Association of Flight Attendants