One realizes the company is not just playing hardball but is indeed out to exploit the BK process to achieve its ultimate goals of gutting the work agreements with its unions.
After reading the thread on AMFA's negotiations and the information the AFA membership has received after only a few hours of negotiations with our union, no other conclusion can be drawn.
United management's arrogance and unwillingness to allow reason to enter into negotiations is evident.
According to our Financial Review Committee that is negotiating for AFA...
"The demands from United included a 6.2% wage reduction on base rates of pay and all premium pay as part of the $138M. Also contained within the Term Sheet was a demand for an additional 4% reduction on all hourly rates of pay from December 31, 2004 to the company’s exit from bankruptcy, for a total proposed wage reduction of 10.2%. An extension of the 4% hourly rate of pay reduction was included, for a period of up to six months, following exit from bankruptcy in the event the company would otherwise fail to meet financial covenant agreements. United management indicated today that they anticipated they would most likely need that additional six months of 4% wage cuts after exit from bankruptcy.
This afternoon, during our meeting, it became clear that although the 4% hourly rate of pay reduction was contained in the Term Sheet, Flight Attendants would not receive any credit from that 4% towards United’s target goal of $138M. In other words, United is demanding concessions from Flight Attendants in the amount of $138M through wage, benefits and work rules; plus the termination of our defined benefit pension plan, plus an additional 4% wage reduction from December 31, 2004 to a period ending six months after our exit from bankruptcy.
When management revealed this sneaky figure was in addition to their already exorbitant demands and were unable to provide any reasonable rationale for the fact that this item which was included in their own Term Sheet, would not be valued toward the target set for AFA, talks between AFA and the company stalled."
"...AFA remains committed to following the requirements of the law as we proceed with our goal of minimizing the impact of United management’s failures being borne on the sacrifices of its Flight Attendants..."
As UAL Tech says, "I feel the love now."
If this stance by management continues I only see one outcome...liquidation.
After reading the thread on AMFA's negotiations and the information the AFA membership has received after only a few hours of negotiations with our union, no other conclusion can be drawn.
United management's arrogance and unwillingness to allow reason to enter into negotiations is evident.
According to our Financial Review Committee that is negotiating for AFA...
"The demands from United included a 6.2% wage reduction on base rates of pay and all premium pay as part of the $138M. Also contained within the Term Sheet was a demand for an additional 4% reduction on all hourly rates of pay from December 31, 2004 to the company’s exit from bankruptcy, for a total proposed wage reduction of 10.2%. An extension of the 4% hourly rate of pay reduction was included, for a period of up to six months, following exit from bankruptcy in the event the company would otherwise fail to meet financial covenant agreements. United management indicated today that they anticipated they would most likely need that additional six months of 4% wage cuts after exit from bankruptcy.
This afternoon, during our meeting, it became clear that although the 4% hourly rate of pay reduction was contained in the Term Sheet, Flight Attendants would not receive any credit from that 4% towards United’s target goal of $138M. In other words, United is demanding concessions from Flight Attendants in the amount of $138M through wage, benefits and work rules; plus the termination of our defined benefit pension plan, plus an additional 4% wage reduction from December 31, 2004 to a period ending six months after our exit from bankruptcy.
When management revealed this sneaky figure was in addition to their already exorbitant demands and were unable to provide any reasonable rationale for the fact that this item which was included in their own Term Sheet, would not be valued toward the target set for AFA, talks between AFA and the company stalled."
"...AFA remains committed to following the requirements of the law as we proceed with our goal of minimizing the impact of United management’s failures being borne on the sacrifices of its Flight Attendants..."
As UAL Tech says, "I feel the love now."
If this stance by management continues I only see one outcome...liquidation.
