Hardball: 4/12/05 - Ual Vs Flight Attendants

Won't happen. The people who can't stand it are leaving. The others will take it in the shorts.

Here is a letter from the Narita MEC:

United Airlines yesterday filed another 1113c motion in the United States Bankruptcy Court to REJECT our recently ratified Collective Bargaining Agreement in its entirety. The Company has also stated its intent to file a motion for 1113e Emergency Interim Relief prior to April 28th.

I am writing to you from the April AFA Master Executive Council Meeting.

Let’s kill the rumor mill right now- The discussions between AFA and the Company on Early Out are over. No agreement was reached.

Why should the Company offer an early out when they have successfully created working conditions so onerous that Flight Attendant attrition rates are now at 20-35%?

In the month of February United reported a net LOSS of $291 million dollars, despite ratification of AFA and ALPA concessionary agreements and load factors averaging almost 98%.

Under present management’s “leadership†United has been a sinking ship. Employee concessions have had NO EFFECT on the deteriorating financial condition of United Airlines. It is clear, after 29 months of Bankruptcy Protection, that endless rounds of employee concessions have had, and will have no bearing on the successful reorganization of United Airlines.

Fool me once, shame on you. Fool me twice, shame on me.

So- what’s the latest AFA campaign? “Give back the Moneyâ€â€¦ To those who voted for concessions- Didn’t you realize when you voted yes, that you were just voting to give United Management another raise? After all, that’s what’s happened every other time we’ve volunteered to give up our wages, benefits, and work rules to line the pockets of United Airlines executives. The Robber Baron greed and hubris of United Senior Management has grown only worse. Notice now that Salaried and Management’s Pensions have suddenly disappeared from the Pension Termination chopping block.

Take a step back and look at the big picture- despite the monumental efforts of the Front Line employees, United is in such sorry condition that the Flight Attendants can come to work for free and United will still not break even. There are only 15,000 United Flight Attendants left- do the math!

For the first time in this roller coaster Bankruptcy the Creditors Committee has expressed “concern†in a letter to the Bankruptcy Court. The Creditors Committee has finally realized something that we have known all along- Current management is incapable of leading United Airlines out of Bankruptcy.

Have we passed the point of no return? United Airlines has lost $10 BILLION dollars since the year 2000. United Airlines lost $2 Billion dollars in 2004 alone. United’s 2005 first quarter results have been disastrous. Where will this end? The recent and evolving comments from CEO Glen Tilton supporting aviation industry consolidation and in support of foreign ownership of US Airlines paint a clear picture: Once United has successfully destroyed the labor agreements and dodged the pension obligations our airline will be ripe for a merger or acquisition.

Despite ratification we once again find ourselves in the same boat as our brothers and sisters at the IAM and AMFA. It is high time that the front line employees of our once great company band together to fight for our collective future.

I wish you all the best of luck! I plan to leave United Airlines soon as I do not see a future with this Company. Those who remain must continue to work for a positive outcome. I can only hope that this debacle has convinced EVERY United Airlines Flight Attendant to FIGHT the latest concessionary demands. Decisions based on fear and compromise will continue to lead us down the path of no return.

Sincerely,

Marc Nisam

Soon-to-be-Ex-President J

AFA Local Executive Council 38

P.O. Box 168

Narita International Airport, Terminal 1

Narita, Japan 282-0011

[email protected]

[email protected]

Office Phone: (81)(0)476-33-8182

Office FAX: (81)(0)476-33-8183
 
I think the previous 2 posts are about as close to reality as it gets. Sad but true. And it is spreading and will spread throughout the entire legacy industry while LCCs concoct even more ingenious ways to pay their people less. Pity the poor American workers.
 
I wish you all the best of luck! I plan to leave United Airlines soon as I do not see a future with this Company. Those who remain must continue to work for a positive outcome. I can only hope that this debacle has convinced EVERY United Airlines Flight Attendant to FIGHT the latest concessionary demands. Decisions based on fear and compromise will continue to lead us down the path of no return.

I am grateful that I do not have a 'leader' such as you!!!


B) UT
 
I think that all the employees at UAL have to do is to look at USAir to see what UA management wants to pay you. I think that this AFA rep is correct in that once the total compensation at UAL has been reduced again and pensions and scope eliminated (finally to USAir levels) then the UA will be ripe for a merger or acquisition. USAir management has been pressing for consolidation and we have all heard Tilton crow about it. In my opinion, once the decimation of compensation is complete, some one will step forward with cash and bring UAL out of bankruptcy because nothing turns finance people on more than deep pay cuts. As for UAs "marriage partner" time will tell.
 
WorldTraveler said:
I think the previous 2 posts are about as close to reality as it gets. Sad but true. And it is spreading and will spread throughout the entire legacy industry while LCCs concoct even more ingenious ways to pay their people less. Pity the poor American workers.
[post="262311"][/post]​

You have said this before. However, I see no proof that that is what is happening.

A new-hire classmate of mine at AA now works for Frontier. Her 1st year pay rate at Frontier is about $.80/hr less than my 4th year pay rate at AA. The new contract for SWA flight attendants makes (or will make) them the highest paid domestic flight attendants in the U.S. by the end of the contract.

Unless the mechanics who post here are lieing through their teeth, SWA mechanics make more than they do. Ditto most of the pilot posters.

Which particular "ingenious ways to pay their people less" are you referring to? Can you be more specific?
 
How about "while the LCCs continue to lower compensation, which other carriers are then forced to match."
 
jimntx said:
You have said this before. However, I see no proof that that is what is happening.

A new-hire classmate of mine at AA now works for Frontier. Her 1st year pay rate at Frontier is about $.80/hr less than my 4th year pay rate at AA. The new contract for SWA flight attendants makes (or will make) them the highest paid domestic flight attendants in the U.S. by the end of the contract.

Unless the mechanics who post here are lieing through their teeth, SWA mechanics make more than they do. Ditto most of the pilot posters.

Which particular "ingenious ways to pay their people less" are you referring to? Can you be more specific?
[post="262403"][/post]​
<_< jim----Simple economics 101! Something the "Big Boys" haven't figured out yet! "You treat your employees well, they'll make you money!!!!"
 
Arguing about whether US Airways or United is in worse shape is like asking where each one's cabin is on the Titanic. It's all relative.

First, let's be honest. There isn't a snowball's chance in H-ll that UA exits bankruptcy in the Fall of 2005. Too much work left to be done in such a short period of time. And I'm not even talking about the labor mess that is about to unfold. And with the price of oil showing no signs of reliable decline, the pressure is on us to find more significant cost savings because we are still bleeding cash on a daily basis ($10 million/day in the 1st Quarter). If you notice, Tilton's comments on bankruptcy emergence lately have caveats attached. What United should do is stop committing to an exit time. It only makes Tilton and his supposed braintrust look all the more idiotic and out of their league. If we're truly intent on only doing this once, we should be in no rush whatsoever to leave Chapter 11. That's because we're no where close to breaking even, let alone profitability.
 
Notice now that Salaried and Management’s Pensions have suddenly disappeared from the Pension Termination chopping block.

In a letter dated April 12, 2005

Dear Participant or Beneficiary:

For several months , United has said it would need to terminate and replace its defined benefit pension plans. To that end, we filed a motion with the U.S. Bankruptcy Court on April 11 seeking a voluntary distress termination of the Management, Administrative, and Public Contact Defined Benefit Pension Plan (MAPC Plan) and the Flight Attendant Defined Benefit Pension Plan. The company is taking this step because it is necessary to attract exit financing and emerge successfully from bankruptcy. Separately, the PBGC has moved to involuntarly terminate the other two pension plans - Pilot and Union Ground.

It goes on to say that the effective date is June 30, 2005.

Good luck to those who remain!

Ex Unimatic Programmer/Analyst
Now "Would you like fries with that?"
 
Has anybody noticed that a merger is in the works between USAirways and America West? These are two of the airlines that received ATSB loan guarantees. Is this the plan now for United, since we seem to be copying USAirways? Is there a merger on the back burner now for United? Is this why Tilton wants to abrogate the contracts? I agree with the poster who says that United will not emerge from bankruptcy in the Fall 2005.
 

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