UAL-MEC COMMUNICATIONS
AIR LINE PILOTS ASSOCIATION
6400 Shafer Ct., Suite 700
Rosemont, IL (847) 292-1700
MEC WEEKEND UPDATE
Friday, September 27, 2002
By MEC Communications Chairman Captain Steve Derebey
* As we mentioned on Wednesday, United’s union coalition presented to CEO Glenn Tilton a proposal outlining an alternative labor savings framework in support of an
application for an ATSB loan. The coalition’s recovery program will provide $5 billion over the next five years.
Subsequently, the Company responded to the union’s collaborative efforts, stating:
“We welcome the framework from the union coalition, which has worked diligently to forge constructive recommendations for addressing some of United’s most immediate
financial needs. Given the very real deadline imposed by our financial situation, we appreciate this quick but thorough effort. We will study the framework very carefully, and
we are committed to responding to the coalition and its members in the days ahead to finalize an updated business plan to take to the ATSB.â€
The Company has not yet responded substantively to the union’s proposal. We anticipate that, after its review, the Company will respond to the coalition expeditiously and
affirmatively. If that happens, we will then promptly sit down to negotiate a full ERP II agreement with United which will then be brought to the MEC for their consideration.
We expect this to be a deliberate but expedited process. In the event that tentative agreements with the unions are reached with the Company, they will then submit
another application to the ATSB for approval. At that point, the ATSB will decide whether this proposal, in conjunction with the Company’s plan for cost savings, meets the
stated requirement that United’s’ cost savings proposal be “deeper, broader, and longer.â€
Details of each union’s level of participation have not yet been finalized, and will not be made public until we have a tentative agreement with the Company. There is no
doubt that preliminary figures of participation have been discussed and that each union’s representatives and financial advisors are keenly aware of the extent to which each
union is willing to participate, but only until the Company and the ATSB approve the coalition’s collective participation, as represented by their tentative agreements, will
these figures be finalized.
Of course, when the MEC finally gives their approval, you will receive the full documentation as you received for the original ERP. There will be a very short period of time
for information to be presented and a membership ratification ballot issued, so we urge you to remain vigilant and open to the flow of information soon to be presented to
you.
AIR LINE PILOTS ASSOCIATION
6400 Shafer Ct., Suite 700
Rosemont, IL (847) 292-1700
MEC WEEKEND UPDATE
Friday, September 27, 2002
By MEC Communications Chairman Captain Steve Derebey
* As we mentioned on Wednesday, United’s union coalition presented to CEO Glenn Tilton a proposal outlining an alternative labor savings framework in support of an
application for an ATSB loan. The coalition’s recovery program will provide $5 billion over the next five years.
Subsequently, the Company responded to the union’s collaborative efforts, stating:
“We welcome the framework from the union coalition, which has worked diligently to forge constructive recommendations for addressing some of United’s most immediate
financial needs. Given the very real deadline imposed by our financial situation, we appreciate this quick but thorough effort. We will study the framework very carefully, and
we are committed to responding to the coalition and its members in the days ahead to finalize an updated business plan to take to the ATSB.â€
The Company has not yet responded substantively to the union’s proposal. We anticipate that, after its review, the Company will respond to the coalition expeditiously and
affirmatively. If that happens, we will then promptly sit down to negotiate a full ERP II agreement with United which will then be brought to the MEC for their consideration.
We expect this to be a deliberate but expedited process. In the event that tentative agreements with the unions are reached with the Company, they will then submit
another application to the ATSB for approval. At that point, the ATSB will decide whether this proposal, in conjunction with the Company’s plan for cost savings, meets the
stated requirement that United’s’ cost savings proposal be “deeper, broader, and longer.â€
Details of each union’s level of participation have not yet been finalized, and will not be made public until we have a tentative agreement with the Company. There is no
doubt that preliminary figures of participation have been discussed and that each union’s representatives and financial advisors are keenly aware of the extent to which each
union is willing to participate, but only until the Company and the ATSB approve the coalition’s collective participation, as represented by their tentative agreements, will
these figures be finalized.
Of course, when the MEC finally gives their approval, you will receive the full documentation as you received for the original ERP. There will be a very short period of time
for information to be presented and a membership ratification ballot issued, so we urge you to remain vigilant and open to the flow of information soon to be presented to
you.
