Why No Stock?

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On 4/8/2003 4:43:11 PM Segue wrote:

Perhaps if they try again and got it right:

1) Real shares that can be sold.
2) No labor groups on BOD

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Segue,

The ‘ONLY’ way to get it right is for a creation of a “United Union” which would include ‘ALL’ groups.

No ALPA, AFA, IAM, and etc…

If this would have occurred in the original conception of the ESOP, then it might have been possible for all groups (including management) to act more like owners instead of unionized thugs.

Of course, this will not happen, so it is a moot point.

IMHO,

From ''My World Point of View" - UAL_TECH

* The ESOP buyout was a stopgap measure for stopping ''The Wolf'' from selling off UAL piecemeal (Sacrifice pay, and work rules for jobs). ''The Wolf'' tried to buy UAL with the Coniston Partners but failed. His second attempt included ALPA, and failed again. (causing the market crash in 1989) Being frustrated, ''The Wolf'' put UAL assets up for sale. He began with the selling the flight kitchens to Hobbs International, had buyers lined up for selling off of the Engine Overhaul Shop in SFO, and was looking for other opportunities to part out the company for cash to increase ''Shareholder Value''. Then came the winning ESOP transaction.

ALPA, UAL Management, and the IAM put the ''deal'' together.

* Under this ''deal'', ''The Wolf'' was to be replaced by Greenwald, each group was promised a seat on the board, and an industry leading seamless contract at the end of the ESOP period, (Do not remember how many Million$ that ''The Wolf'' received for his part.) In exchange, ESOP participants gave immediate pay reductions, and work rules to pay off the ESOP loan (average of 15-18% ???).

* IAM members were split on the ESOP buy in, and one of the circumstances that led to the IAM ratification was the workers of the flight kitchens. The flight kitchen workers were promised a 44 week severance package under the ESOP buyout plan, which was limited to 8 weeks at the time (someone correct me if I am wrong).

What would you do?

* FadeIn - FadeOut : ESOP is voted in by ALPA, UAL Management (like they had a choice ), and the IAM. Kitchens are sold, and ''The Wolf'' is out.

* IAM Membership immediately requested to begin the process of selecting their ''Board Representative''. The IAM National divulges their ''Golden Vote'' right, makes their ''own'' selection (Peterpaul) without the input of the membership. Membership is not happy with this ''hidden'' caveat in the ESOP agreement. Thus begins the feeling of being used, lied to, and misled by the union.

* ESOP PERIOD: 1994-1999 Although initially pessimistic, UAL employees live with the decision. Many advancements in employee involvement, and quality of life issues were made. All in all, it was a pretty good place to be (except for the salary issue).

* End of ESOP: Before the exit of Greenwald, Greenwald recommends that Edwardson be his replacement. ALPA, and the IAM had issues with Edwardson (mainly due to his resistance to mid-term wage agreements), and the BOD agrees on Goodwin. (Edwardson moves on with quite an impressive record after leaving UAL).

* Contract negations begin with ALPA and the IAM. Both ALPA, and IAM are looking forward to a ''Seamless Contract, and Industry leading wages'' as was promised under the ESOP.

* May 2000: UAL Management, and salaried employees received profit sharing, and wage increases of 15-35% under ''Vision 2000''.

* As Goodwin is focused on the USAir merger, he ignores/defers the ALPA and IAM negotiations. (So much for the ''Seamless Contract, and Industry leading wages'' promise). This causes friction between employees, and management (yep, it all came back). The more that ALPA/IAM pushed for resolution, the more they were ignored. Being upset for the broken promise/agreement, ALPA began a ''work to the rule'' program (known by some as ''the summer of hell''). Putting pressure on the UAL operations caused Goodwin to respond, but being upset (pissed off) at being put off. Caused ALPA to press for more than it would have if UAL had fulfilled their commitment as soon as it became amendable. (What I have been told by ALPA people.) Goodwin agrees to ALPA''s demands, gives them all they want, and gets back to the USAir merger and creation of Avolar (still ignores/defers IAM negotiations).

* With some overlap into the ''Summer of Hell'', the IAM Membership decided that maybe the IAM was not their best representative , and wanted AMFA to represent them . Goodwin used this opportunity as an excuse to further ignore/defer IAM negotiations. During this period, in an effort to heighten Goodwin''s attention to a contact resolution, there was an IAM ''work to the rule'' program also. However, instead of getting Goodwin to restart negations, Goodwin decided to put a court imposed injunction on them instead. (So much for employee ''Owner'' relations)

* September 11, 2001 : Osama and his wackoban followers kill themselves, and approx. 3000 other human beings in some kind of a sick, and sadistic world statement. (Save my opinion on this for another post.)

IMHO and personal observations.

UAL_TECH