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Flight Attendants Union Slams United

  • 09-01-2004
WASHINGTON (Reuters) - Missteps and cutbacks at bankrupt United Airlines (UALAQ.OB) have destroyed good will with labor, the union representing flight attendants charged on Tuesday, adding that management appears determined to run the carrier ``into the ground.''þþThe Association of Flight Attendants, in a nearly unanimous vote of members, expressed no confidence in Glenn Tilton, the company's chief executive, and his team and vowed legal action to replace them.þþThe union's charge is likely to generate even more friction as a United spokeswoman said the carrier was in the midst of revamping its business plan, a step that could result in additional jobs cuts at the airline.þþ``No decision has been taken,'' the spokeswoman, Jean Medina, said. ``We're looking at everything, at all our costs, and this is in addition to what we've already done.''þþA report on the Financial Times Web site, citing unidentified sources, said as many as 6,000 more jobs, or 10 percent of the airline's work force, could be on the line. The cuts could take another $655 million out of annual operating costs, it said.þþThe flight attendants are the second major labor group at the beleaguered carrier this month to openly challenge the competency of management. The International Association of Machinists has asked the bankruptcy court in Chicago to approve a trustee to oversee the airline's operations during bankruptcy.þþ``United Airlines senior management has attacked our wages, benefits and work rules; they've attacked our retirees; and now they've attacked our pensions,'' said Greg Davidowitch, president of the flight attendants' union's chapter at United. ``Yet they have failed,'' he said, ``to accomplish what employees have been working to achieve -- a successful exit from bankruptcy.''þþThe flight attendants association represents 21,000 workers at the No. 2 carrier, which has stopped contributing to employee pension accounts to give it more flexibility to manage its finances.þþUnited, a unit of UAL Corp., has said it may scrap the pension plans to attract equity investors necessary to get the company out of bankruptcy, but no decisions has been made yet.þþUnited's four employee pension plans covering 120,000 employees and retirees are underfunded by $8.3 billion.þþ``United management appears determined to run this proud airline into the ground, taking its workers and customers along with it,'' said Pat Friend, the flight attendants' union's international president. ``The (bankruptcy) court must recognize that the company's continued betrayal of its employees is the single largest obstacle to its recovery and emergence from Chapter 11.''þþUnited said the sharp criticism does nothing to help it successfully exit bankruptcy.þþ``We believe that all of us who are interested in United's future need to work together constructively to get the company in the best possible shape to compete in the long term,'' said Jeff Green, a company spokesman. ``And, in fact, our bankruptcy judge reminded us of that recently. The AFA's action is contrary to that cooperative spirit.''þþþþ

Source: NY Times