NYTimes.com Article: Flight Attendants at UAL Vote to Accept Concessions

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Flight Attendants at UAL Vote to Accept Concessions

December 1, 2002
By MICHELINE MAYNARD with STEVEN GREENHOUSE






CHICAGO, Nov. 30 - United Airlines' flight attendants gave
sweeping approval today to $412 million in contract
concessions. Their move came even as the leader of the
airline's mechanics pleaded with members to reconsider
their rejection and save the airline from near-certain
bankruptcy.

The 24,000 members of the Association of Flight Attendants
at United voted 87 percent in favor of the wage and benefit
cuts, which like others granted by employees at the airline
will be spread out over the next five and a half years.
Their concessions leave only the mechanics resisting the
airline's call for help to stave off the threat of a
Chapter 11 filing.

Randy Canale, president of the International Association of
Machinists and Aerospace Workers at United, which
represents the mechanics, made his appeal in a letter sent
to union members today. In it, he suggested that a new vote
by the mechanics might be held soon and said that their
vote last Thursday against concessions, by 57 percent to 43
percent, was misguided. Officials from the union and the
company planned to meet Sunday to discuss possible actions.


United's 13,000 mechanics upset the airline's plans to
secure a total of $5.2 billion in concessions from its
unions when they voted to reject their share of the cuts,
valued at $700 million. United's leadership says the full
package of wage and benefit cuts are needed to avert
bankruptcy and to persuade the federal government to
provide $1.8 billion in loan guarantees.

The flight attendants' vote was never really in doubt. The
union's leadership fell in line behind United's pilots in
proposing concessions last month. But the gesture was
significant because, unlike the pilots and the machinists'
union, the flight attendants do not have a seat on United's
board, nor do they hold shares in the airline as do the
other unions.

"The flight attendants have made the difficult but
necessary decision to contribute our part in the financial
restructuring of United Airlines," Greg Davidowitch,
president of the flight attendants' union at United, said
in a statement issued after the vote.

In remarks aimed at the mechanics, Mr. Davidowitch added,
"This deal leaves just one more labor group to participate
before the recovery plan can go forward."

United's pilots have already approved $2.2 billion in cuts
and several other employee groups have backed their share
of cuts. United, the world's second-largest airline, is
pushing to line up the concessions and loan guarantees as
soon as possible in order to show the federal Air
Transportation Stabilization Board that it has its
employees on board in its restructuring effort.

United faces a Monday deadline for a crucial debt payment
of $375 million backed by aircraft.

Executives involved in negotiations with the airline said
United was unlikely to file for bankruptcy protection this
weekend, and would probably take advantage of a 10-day
grace period on the payment.

Officials with the machinists union were stunned by the
mechanics' vote because two other divisions in the
machinists union at United, part of the UAL Corporation,
had approved the concessions. About 63 percent of ramp and
food-service workers voted to approve the concessions, as
did 79 percent of ticket agents and customer-service
representatives.

"The current plight of UAL is certainly not of the
employees' making, but it will certainly take a collective
effort from every United employee to keep this airline out
of bankruptcy," wrote Mr. Canale, who leads 37,000 members
at United. "It is unfortunate that some members at United
still question the need for participation in a recovery
program. At this stage, the alternatives are so undeniably
worse, I question the motives and judgment behind such a
division."

One machinists official said the mechanics' vote might have
been influenced by a rival union, the Aircraft Mechanics
Fraternal Association, which asserts that mechanics are
underpaid and should not grant concessions. That union is
seeking to persuade United's mechanics to leave the
machinists' union, having already persuaded mechanics at
Northwest Airlines to quit the machinists and join the
rival group.

John W. Budd, an industrial relations professor at the
University of Minnesota, who follows airline unions, said
the mechanics' vote against concessions was as much a slap
at their union as at United.

"If you look at United, if you look at Northwest, the
machinists union doesn't have a very good track record of
staying in touch with the membership and selling the needs
of the contract to the membership, which is how you get a
rejection," Professor Budd said. "If the membership is
already confrontational and they're feeling disconnected
from the leadership and you have this other union giving
them a line against concessions and pumping them up, then
right down it goes."

Scotty Ford, who heads the mechanics division of the union
at United, declined to comment, but several mechanics said
they opposed the concessions because they felt a
long-standing antagonism toward management and because they
were not convinced the cuts would save United from
bankruptcy. They also voiced dismay with a stipulation in
the concessions agreement that would have allowed United to
make further cuts.

But Mr. Canale's arguments persuaded one customer-service
representative at Newark Liberty International Airport, who
insisted on anonymity, largely because the airline has
urged its employees not to discuss the situation. "We all
want to see United succeed," she said. "At the same time,
we don't want pay cuts to be the only way to be
profitable."

She said that she had worked for United for 24 years and,
like most of her co-workers, had gone without salary
increases in order to buy shares in the company. "We've
invested a lot in the company," she said. "Our future's
wrapped up in it."

http://www.nytimes.com/2002/12/01/business/01AIR.html?ex=1039754749&ei=1&en=a6f558323e22e45b



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