Flight Attendants Threaten to End Deal With United ?

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Flight Attendants Threaten to End Deal With United  
 
  

Sunday April 10, 10:08 PM EDT 


The Association of Flight Attendants said it notified UAL Corp.'s United Airlines on Friday that it will rip up its current cost-saving labor contract in 20 days if company executives can't demonstrate that wage cuts imposed on nonunion salaried and management workers were as advertised, Monday's Wall Street Journal reported.

"It appears that a significant portion of the concessions that salaried and management employees supposedly were making are illusory," said Greg Davidowitch, president of the AFA branch at United. The leader of the union, whose 15,500 active members three months ago narrowly agreed to a second round of concessions, said UAL's methodology for valuing the salaried employees' givebacks "was inappropriate," raising questions about management's trustworthiness.

  

The latest dispute comes as UAL is scheduled to file papers Monday in U.S. Bankruptcy Court in Chicago seeking permission to amend the flight attendants' contract to release the company from the obligation of providing a defined- benefit pension plan to that group and its retirees. UAL also is expected to ask the judge to annul the contracts of two other unions that haven't agreed to a second round of concessions and the termination of their pension plans. A trial on the issues is scheduled for May 11.

The AFA has the right to audit UAL's cost-savings numbers to ensure the sacrifices each group is making toward the overall goal of $725 million in additional labor savings a year are equitable. The union said its audit found " major problems" with the airline's data, including evidence the company artificially inflated salaried workers' pay rates before the wage cuts were factored in.

A spokeswoman for United said the union's allegations were "completely absurd."


Roger
EWROPS

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