Re: UAL could move to void union contracts

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....The blinders are not easily removed from the
Union-mindset...

Still remember those Picketers on NW 36th Street
demanding their rights on that January day that EA
went out. History teaches a lesson, but only to those
that are willing to listen.

Bryant Petitt
Cumming, GA

--- Mark Greenwood <mgreenwood@telus.net> wrote:
> If the unions are standing in the way of United's
> recovery then the unions
> have to go.  After the contracts are voided, United
> should go to their
> employees and say, this is the job, this what we are
> prepared to pay you to do
> the job, take it or leave it.
>
> Mark
>
> Fan of not wanting to see another airline brought
> down by it's pigheaded
> unions
>
> Roger & Amanda La France wrote:
>
> > UAL could move to void union contracts=20
> > (Reuters) =97 UAL Corp., parent of United
> Airlines, said Tuesday it
> > intends to file a bankruptcy court motion to throw
> out its labor
> > agreements as early as next week if unions do not
> agree to wage cuts.=20
> >
> > UAL attorney Jamie Sprayregen told a U.S.
> bankruptcy judge Tuesday that
> > United plans to continue working with its unions
> to achieve wage cuts.
> > But without them, he said, the carrier would file
> a motion under Section
> > 1113 of Chapter 11 of the U.S. bankruptcy code on
> Dec. 26.=20
> >
> > The filing, Sprayregen said, would be necessary to
> ensure the airline
> > remains in compliance with the requirements of its
> debtor-in-possession
> > (DIP) financing agreements.=20
> >
> > The airline on Friday said it needs to cut annual
> labor costs by $2.4
> > billion in order to satisfy lenders' financing
> conditions, and the
> > pilots union on Monday said it was ''stunned'' by
> the proposal.=20
> >
> > United, the No. 2 U.S. airline based in Elk Grove
> Township, Illinois,
> > filed the largest bankruptcy in aviation history
> last week. The
> > company's shares closed down 23 cents, or more
> than 15 percent, at $1.27
> > on the New York Stock Exchange.=20
> >
> > Tilton: UAL needs deep wage cuts=20
> >
> > United Chief Executive Glenn Tilton said Tuesday
> the bankrupt airline
> > needs much deeper wage cuts than had been sought
> in a failed bid for
> > federal loan guarantees, in order to give it long
> term stability and
> > compete with low cost airlines.=20
> >
> > United stunned its union workers last week by
> proposing cuts more than
> > double what it had sought just days before filing
> the largest ever
> > bankruptcy case in aviation history on Dec. 9.=20
> >
> > Tilton did not disclose details of the latest wage
> cut proposal in a
> > letter to employees released Tuesday, but said the
> earlier plan for the
> > Air Transportation Stabilization Board loan
> guarantees would have
> > provided only temporary stability.=20
> >
> > ``Simply put, the plan submitted to the ATSB was
> designed to stabilize
> > the company,'' Tilton said. ``However, we knew
> there was more to do
> > going forward. What we are seeking now is to
> transform the company for
> > the long term and to make that transformation
> sustainable.''=20
> >
> > United had asked workers to shoulder $5.2 billion
> of cuts over 5-1/2
> > years for the loan guarantees, or about $1 billion
> a year. However,
> > United's flight attendants union has said the
> airline now wants about
> > $2.4 billion per year in wage cuts.=20
> >
> > The union that represents some 37,500 machinists
> has said United now
> > wants 13 percent wage cuts, compared with 6
> percent or 7 percent cuts
> > under the prior plan. About 80 percent of United's
> 83,000 workers are
> > represented by unions. Pilots and machinists have
> seats on the company's
> > board of directors.=20
> >
> > The airline needs immediate cuts to satisfy
> lenders who provided
> > financing to help sustain United during the
> restructuring, Tilton said.=20
> >
> > Tilton also said United must broaden its service
> to become attractive to
> > more potential passengers and make significant
> cost cuts so direct
> > competition with low fare airlines will still be
> profitable.=20
> >
> > ``We must take on the competitive threat of low
> cost carriers that are
> > attacking a large percent of United's route
> structure in the United
> > States,'' Tilton said. ``They are growing, we are
> not and the market is
> > not, that means their growth is coming from us.
> Their growth comes from
> > us because they can make a profit on a fare that
> we can't."=20


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