NYTimes.com Article: Unions Question United's Proposal

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Unions Question United's Proposal

February 4, 2003
By EDWARD WONG






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.

The 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.

United, 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.

Yesterday, Paul Whiteford, the Air Line Pilots Association
representative on the company's board, said that the plans
presented so far lacked specificity.

"We still don't have a financial target that we're supposed
to negotiate toward," he said. "There 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."

The Association of Flight Attendants agreed yesterday with
Mr. Whiteford's downbeat assessment.

"We can't negotiate a deal without knowing what the flight
attendants' contract will contribute to that deal," Sara
Dela Cruz, a union spokeswoman, said. "Without those
details, our negotiations are like throwing darts in the
dark."

Mr. 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.

He 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
"nonstarter," 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.

Another 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.

A 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.

"UAL's board of directors gave management its complete
endorsement last week to develop the plan we presented,"
Ms. Nardella said. "There was no disagreement, including
from the union representatives, that we must fundamentally
transform our company to survive."

http://www.nytimes.com/2003/02/04/business/04AIR.html?ex=1045368035&ei=1&en=c65a3c22248abbbb



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