Pilots union blasts UAL plan

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Pilots union blasts UAL plan
By Marilyn Adams, USA TODAY

Even before UAL has issued a reorganization plan, the airline company's
proposal to create a low-fare carrier is prompting outrage from its
powerful pilots union. The chairman of the Air Line Pilots Association on
Wednesday blasted what he called "rumors" of a reorganization plan that he
said could break up the airline in bankruptcy court. Paul Whiteford, a
United captain who is also a UAL director, said leaders of the union fear
United's proposing to create a separate low-fare airline with a separate
workforce and separate labor contract that could be "spun off" from UAL.
The directors are scheduled Thursday to review United's preliminary
reorganization plan.

UAL, which has been a majority employee-owned company since 1994, filed for
Chapter 11 bankruptcy protection on Dec. 9.
"I'm more than willing to give United the tools it needs" to emerge from
bankruptcy, Whiteford said in an interview. "But I won't have discussions
about a separate airline that could be spun off. We will oppose
management's breakup plan by every lawful means available to us." The
stinging remarks caught UAL executives by surprise. UAL hasn't released
details of its plan. But the airline said in a statement Wednesday night
that a low-fare carrier "integrated" into its network is critical to its
future. People familiar with the planning say UAL envisions a division or
subsidiary with a separate brand, workforce and pay scale that would
operate flights between leisure destinations, such as Orlando, and United's
hub airports, such as Chicago O'Hare. Passengers could transfer to regular
United flights. It wasn't clear Wednesday whether United seeks a separate
labor agreement with employees of the new low-fare unit to keep costs down.

Whiteford criticized UAL for failing to negotiate a new contract with his
union in a "meaningful" way. UAL responded it has held "dozens" of meetings
and shared "thousands of pages" of documents with union leaders. His angry
tone was the most visible sign yet that labor and management aren't
communicating or that UAL might not get the labor-contract concessions it
wants without a court fight. Whiteford's statement comes just weeks after
92% of his members voted to take temporary 29% pay cuts to help United trim
costs quickly in bankruptcy. The airline went to court to extract 14% pay
cuts from members of its largest union, the International Association of
Machinists, which refused to take voluntary cuts. UAL has made clear it's
willing to ask the bankruptcy court for permission to break its labor
contracts if necessary. UAL executives have said that an initiative to
address stiff competition from low-fare airlines must be a significant part
of its business plan for survival. The discount unit, they have said, would
fly Boeing 737s, like Southwest Airlines, and require lower labor costs
than United's main line.


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