NYTimes.com Article: Flight Attendants Union Slams United

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Flight Attendants Union Slams United

August 31, 2004
 By REUTERS





Filed at 9:34 p.m. ET

WASHINGTON (Reuters) - Missteps and cutbacks at bankrupt
United Airlines (UALAQ.OB) have destroyed good will with
labor, the union representing flight attendants charged on
Tuesday, adding that management appears determined to run
the carrier ``into the ground.''

The Association of Flight Attendants, in a nearly unanimous
vote of members, expressed no confidence in Glenn Tilton,
the company's chief executive, and his team and vowed legal
action to replace them.

The union's charge is likely to generate even more friction
as a United spokeswoman said the carrier was in the midst
of revamping its business plan, a step that could result in
additional jobs cuts at the airline.

``No decision has been taken,'' the spokeswoman, Jean
Medina, said. ``We're looking at everything, at all our
costs, and this is in addition to what we've already
done.''

A report on the Financial Times Web site, citing
unidentified sources, said as many as 6,000 more jobs, or
10 percent of the airline's work force, could be on the
line. The cuts could take another $655 million out of
annual operating costs, it said.

The flight attendants are the second major labor group at
the beleaguered carrier this month to openly challenge the
competency of management. The International Association of
Machinists has asked the bankruptcy court in Chicago to
approve a trustee to oversee the airline's operations
during bankruptcy.

``United Airlines senior management has attacked our wages,
benefits and work rules; they've attacked our retirees; and
now they've attacked our pensions,'' said Greg Davidowitch,
president of the flight attendants' union's chapter at
United. ``Yet they have failed,'' he said, ``to accomplish
what employees have been working to achieve -- a successful
exit from bankruptcy.''

The flight attendants association represents 21,000 workers
at the No. 2 carrier, which has stopped contributing to
employee pension accounts to give it more flexibility to
manage its finances.

United, a unit of UAL Corp., has said it may scrap the
pension plans to attract equity investors necessary to get
the company out of bankruptcy, but no decisions has been
made yet.

United's four employee pension plans covering 120,000
employees and retirees are underfunded by $8.3 billion.

``United management appears determined to run this proud
airline into the ground, taking its workers and customers
along with it,'' said Pat Friend, the flight attendants'
union's international president. ``The (bankruptcy) court
must recognize that the company's continued betrayal of its
employees is the single largest obstacle to its recovery
and emergence from Chapter 11.''

United said the sharp criticism does nothing to help it
successfully exit bankruptcy.

``We believe that all of us who are interested in United's
future need to work together constructively to get the
company in the best possible shape to compete in the long
term,'' said Jeff Green, a company spokesman. ``And, in
fact, our bankruptcy judge reminded us of that recently.
The AFA's action is contrary to that cooperative spirit.''

http://www.nytimes.com/reuters/business/business-airlines-ual-flightattendants.html?ex=1095046768&ei=1&en=36a63f3e06c8d567


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