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Unions Question United's Proposal

  • 02-04-2003
Leaders of unions at United Airlines offered pre-emptive objections yesterday to a recovery plan that airline executives are expected to present to them today.þþThe union officials said that the airline had failed to lay out hard financial numbers showing how much in concessions was needed from each union to help move United out of Chapter 11 bankruptcy protection.þþUnited, a unit of the UAL Corporation, presented parts of its plan to the unions' financial advisers on Jan. 24. Last Thursday, United presented a more detailed version of the plan to the UAL board.þþYesterday, Paul Whiteford, the Air Line Pilots Association representative on the company's board, said that the plans presented so far lacked specificity.þþÿWe still don't have a financial target that we're supposed to negotiate toward,ÿ he said. ÿThere should be a fairly finite, what I call a financial hole, that has to be filled with labor savings. We ought to know what those are.ÿþþThe Association of Flight Attendants agreed yesterday with Mr. Whiteford's downbeat assessment.þþÿWe can't negotiate a deal without knowing what the flight attendants' contract will contribute to that deal,ÿ Sara Dela Cruz, a union spokeswoman, said. ÿWithout those details, our negotiations are like throwing darts in the dark.ÿþþMr. Whiteford said that the pilots also objected to details of United's plan. The company wants to change the workers' medical benefits so that all workers will be enrolled in a single plan requiring co-payments, he said. The labor groups currently have different medical benefits, and the pilots' plan does not require co-payments.þþHe also reiterated objections that he raised last week to United's proposal to start a low-cost carrier. He said establishing such a carrier as a separate company was a ÿnonstarter,ÿ and he balked at what he said was an attempt by United to eliminate the pilots' pension plans and establish a universal retirement plan similar to a 401(k) plan.þþAnother thing angering pilots is United's push to eliminate so-called scope clauses — contract terms that mandate the kinds of planes and the size of the fleet that United flies, Mr. Whiteford said. Pilots' contracts generally include these clauses to ensure that pilots will fly certain types of planes and get appropriate pay for doing so.þþA United spokeswoman, Chris Nardella, said the company remained committed to starting a low-cost carrier. Glenn F. Tilton, the chief executive, echoed this sentiment on a weekly voice mail message to employees.þþÿUAL's board of directors gave management its complete endorsement last week to develop the plan we presented,ÿ Ms. Nardella said. ÿThere was no disagreement, including from the union representatives, that we must fundamentally transform our company to survive.ÿþþþ

Source: NY Times