NYTimes.com Article: United Unions Assail Plan to Cut Benefits

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United Unions Assail Plan to Cut Benefits

February 20, 2004
 By THE ASSOCIATED PRESS





Filed at 10:53 a.m. ET

CHICAGO (AP) -- United Airlines' unions stepped up the
pressure on the carrier Friday over its plan to cut retiree
health care benefits, with machinists announcing a new
campaign of airport demonstrations and public protests.

The machinists also organized picketing by retirees outside
United's headquarters in suburban Elk Grove Village and the
airline's monthly bankruptcy court hearing in Chicago,
where flight attendants were seeking the appointment of an
outside examiner to look into the plan.

The International Association of Machinists and Aerospace
Workers said it had delivered letters to all U.S. senators,
urging them to demand that United CEO Glenn Tilton keep its
commitment to United retirees.

``United Airlines' attempt to hijack medical benefits
promised to retirees is unworthy of a once-great company,''
Robert Roach Jr., general vice president of the
International Association of Machinists and Aerospace
Workers, said in a news release.

Like the flight attendants, the machinists contend United
is going back on a pledge to leave retiree benefits fully
intact for those who retired before last July 1. The unions
maintain that thousands of workers retired early because of
that agreement.

The airline, which has been restructuring and cutting costs
in bankruptcy for the past 14 months, says it never
formally made such a commitment.

``Our members made life-altering decisions based upon
United's assurance that their medical benefits would be
protected,'' said Randy Canale, president of IAM District
141. The union local represents 20,000 active ramp and
stores, food service, security guards and public contact
employees.

United says it intends to emerge from Chapter 11 bankruptcy
by the end of June.

------

On the Net:

www.united.com


http://www.nytimes.com/aponline/business/AP-United-Airlines.html?ex=1078308982&ei=1&en=3be005a78baa6a98


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