Letter To Tilton

[Deleted by Moderator]

Letter to Tilton,
4-Oct-2005

Mr. Tilton -

For the longest time I've been wondering, "How can Glenn Tilton look
at himself in the mirror every morning?" as I view the cruel,
heartless actions you've taken against retirees and employees. We
met last December when I welcomed you aboard the B-777 I was flying
from Denver to Chicago. On one level I had been hoping you would
turn out to be a real bastard - that would explain everything - but
you are obviously a very intelligent, charismatic, and outwardly
pleasant person.

Recently all my questions were answered. You see, I came upon
the book The Sociopath Next Door, by Dr. Martha Stout, and
everything snapped into sharp focus. A sociopath is someone who
has no conscience, who is incapable of feeling empathy or sorrow.
It's not a truly evil trait, it's simply a genetic disorder, like being
color-blind. An alarming number of people (1 in 25) are
sociopaths. You are one of them. You, sir, are a sociopath. The
reason you can do unconscionable things is you have no conscience.
And when I realized that, I stopped being angry at you.

Now I see it wasn't personal, just business, when you destroyed the
pensions of the retirees; pensions that had been bought and paid
for, while still accepting your own bonuses and outrageous salary. I
see how you could not even comprehend my suggestion, sent to you
in two separate e-mails (which you refused to acknowledge or answer)
that you forego your salary and work for $1 per year. It sure would
have galvanized the entire employee group into pulling on the same
end of the rope. And by the way, it wouldn't have been such a bad
idea from a financial perspective. After working for free, your 2007
memoir Rising: the True Story of How Glenn Tilton Rescued United
would have netted you a hefty seven-figure advance that would have
eclipsed your current United salary. Too bad for you, Glenn.
By now the whole world has already seen what you're really made of.

You had your chance to really be a historic leader, and instead you
will simply be a footnote in the case studies that will examine
United Airlines, such as the one I am researching for the Doctor of
Business Administration degree I am currently pursuing. The working
title is Rolling in their Graves: How the Legacy Of Pat Patterson
and Eddie Carlson Was Destroyed by Greed and Incompetence at
United Airlines.

While you appear to be an adequate manager, you're a failure as a
leader, because you are unable to inspire people to want to follow
you. United Airlines was once truly great, where the company really
cared about the employees. Now, it's simply a place where the
employees come to work. They know they're not valued; they're
considered a liability.

During the 27 years I worked at United, I've had some difficult
times: I went unpaid during a strike, was furloughed, took more than
a 25 percent pay cut for the ill-fated ESOP, watched my pay decrease
by more than 50 percent during my last three years, and grieved the
loss of friends and coworkers. Through all of those difficult times
United was a family. We supported each other during the tough times.
We pulled together. With you as the father figure, United is now truly
a disfunctional family.

But at least you've kept your salary, your bonuses and your
retirement. United has picked up the tab for your penthouse
apartment, a total amount that would equal the entire mortgage on
the home of the average retiree. Yes, I know it was promised to you
in your contract. But wait: my pension was promised to me in my
contract.

The sad thing - I'm sorry, I just used a term you can't comprehend -
is that you lack the trait that makes us humans, well, human. No
longer angry, I truly feel sorry for you. I still wish this letter would
hurt your feelings, but I know that's not possible.

With all DUE respect,

George E. Nolly
B-777 Captain, retired

 

[Borescope]

Good luck george, this should be an eye opener to all who have DB plans , you shouldn't rely on someone else to provide your retirement for you. Invest your own money, and anything you get from the company you work at is gravy on top. Remember, promises are made to be broken.

 

[Segue]

His mission is to save the airline. Not everyone will like it.

 

[boxer]

For Heaven's sake don't think that all retired United pilots think like the arrogant fellow who wrote:

"During the 27 years I worked at United, I've had some difficult times: I went unpaid during a strike, was furloughed, took more than a 25 percent pay cut for the ill-fated ESOP, watched my pay decrease by more than 50 percent during my last three years, and grieved the loss of friends and coworkers. Through all of those difficult times United was a family. We supported each other during the tough times. We pulled together. With you as the father figure, United is now truly a dysfunctional family."

Myself, I put in 43 years in UA cockpits starting in 1944, served as Captain on several aircraft types, and checked out as a 747 Captain in 1972. I don't believe that my flying experience or my University of Chicago Ph.D. in social service administration qualifies me to psychoanalyze our CEO or anyone else. Certainly not after reading one book! I don't think Captain Nolly is qualified to make such a diagnosis (nor am I, I might add); moreover, I think the root causes of United's ills are much deeper than the actions of any single CEO, especially Mr. Tilton.

I was still flying when others around me were taken in by the ESOP idea. I was against it, believing that if the pilots ran the company they would "kill the goose that laid the golden egg." After retirement I watched my successors seriously damage United in various ways. Pilot salaries grew larger and larger, and the discrepancy between pilot wages and those of other employees grew greater and greater. Then in 2000 there was the outrageous WOE (Withdrawal of Enthusiasm) slow down, exaggerated by-the-book operations in order to obtain what most of you would consider exorbitant wages. This action, along with stupid actions by former CEOs such as the executive-jet notion, handed Mr. Tilton a "no win" situation. With all of us rightly demanding the best possible settlement on the one hand, and the creditors holding a gun to his back, what could he do.?

Unfortunately many pilots are convinced that because they can fly airplanes, they can do anything. The thinking goes that since they have to make correct decisions instantly while flying airplanes, they can do the same in any situation. Thus they could manage the airline much more wisely than whoever is sitting in the CEO's chair during any given period. Many of these know-it-alls demonstrated their inability to make correct decisions when they followed one pied piper after another. Before ESOP came along, my colleagues were so entranced with Dick Ferris that they put him on the pilot seniority list. Then when they couldn't control him, they turned against him. Over the years, large groups of these fellows have been taken in by dubious investment schemes, all the while telling each other how brilliant they are.

My point is that these know-it-all types really don't know it all. I certainly don't. All of us may know a lot about one or two subjects, but even Einstein didn't know it all. I'm sure that most of my fellow retired pilots a bit more humble than "George E. Nolly B-777 Captain, retired," the fellow who wrote the nasty letter to Mr. Tilton. It is appropriate to discuss Mr. Tilton's actions but it is neither appropriate nor useful to resort to pop psychology.

Al Shaver

 

[dc3fanatic]

It would be very convenient to blame it all on one person. Unfortunately, reality doesn't match your convenience.

 

[boeing787]

Brother AL,

Don't bring up Dick Ferris on this message board...he is just as bad as a scab.

 

[Stratoboozer]

Many people got screwed, by many factors including past/current management decisions, industry downturn, effects from 9/11, etc. It sucks and it happened, nothing we can do about that now except go forward and finish what we started. Whether you like Tilton or hate him, the fact is United is still flying and 57,000+ employees and many others who depend on its' business for a living are doing just that. Restructuring is painful to many (including myself who took a hit), but being unemployed and starting over could be a lot worse, in my opinion.

 

[Borescope]

Unfortunately many pilots are convinced that because they can fly airplanes, they can do anything. The thinking goes that since they have to make correct decisions instantly while flying airplanes, they can do the same in any situation. Thus they could manage the airline much more wisely than whoever is sitting in the CEO's chair during any given period.

Al,
This hits the nail square on the head.

 

[sastal]

Al,
This hits the nail square on the head.

Sounds like someone on these boards who likes to play financial analyst, economist, and corporate strategist, all wrapped into one. 🙄

 

[SmoothRide]

Tell it to poor working slob who has spent a career at United trying (unsuccessfully) to get his hand on the hatchet buried deep in the middle of his shoulder blades by management! Tell it to the 31 year retired pilot who was forceably removed from the Commonwealth Club this week by police after yelling at Tilton "You Stole My Pension!" Yes, there is lots of blame to go around on all sides but management generally preemptively dishes it out more than the employee groups. Even the 2000 "Summer of Love" was the direct REACTION to blatant and egregious lying by our management. Truth (and trust) is the first casualty.

And now this:

Union attacks stock plan for United execs

By Mark Skertic
Tribune staff reporter
Published October 21, 2005


A plan to set aside nearly 19 million shares of stock for about 400 senior managers at United Airlines when the carrier leaves bankruptcy protection drew fire from one of the airline's unions on Thursday.

Giving a potential financial windfall to a select group is unfair, said Robert Clayman, attorney for the Association of Flight Attendants, pointing to job, pay and benefit cuts union workers have endured.

"In a [bankruptcy] case that's been predicated on shared sacrifice, one has to question whether that's appropriate," Clayman said following a court hearing on the disclosure statement of United's bankruptcy reorganization plan.

United proposes reserving 18.75 million shares of stock, or 15 percent of the 125 million shares the airline plans to issue post-bankruptcy, for its cadre of executives.

Followed by this:

The United MEC today unanimously adopted the following resolution pertaining to UAL management's motion to secure 15 percent of the post-bankruptcy equity in the new United Airlines:

"Whereas, the pilots of United Airlines have provided significant financial leadership when compared to both management and other labor groups in order to save United Airlines from potential liquidation, and

"Whereas, this pilot group has provided over $3 billion dollars in contractual sacrifices, in addition to the decimation of our retirement expectations, and

"Whereas, this pilot group will receive significantly LESS than management’s proposed 15% stock allocation for all our shared sacrifices, and

"Whereas, this proposed windfall is FAR in excess of any level that could possibly be considered fair and equitable, or even normal and customary at the exit of bankruptcy, and

"Therefore Be It Resolved that the UAL-MEC opposes, in the strongest possible terms, the egregious and gluttonous attempt by UAL management to seize 15% of the post bankruptcy equity in our new United Airlines."

One can't help but speculate that the majority of employees at this dysfunctional airline feel as though their pensions, salaries and working conditons have simply been plundered by management (and others) and that wealth directly shifted to those who feel they are more deserving. I'm sure the retiree who got tossed at the Commonwealth Club no doubt feels similiar emotions.

The corporate culture remains the same around here. At least they are consistent.

 

[dc3fanatic]

For Heaven's Sake, please don't tie compensation to performance. How Aweful!

 

[scuba]

19 Million shares for 400 members of 'senior' management? Why would a company need 400 'senior' managers? I say the company is still too top heavy!

 

[Busdrvr]

For Heaven's Sake, please don't tie compensation to performance. How Aweful!

Sure, makes sense to me. Lets give this stock to the folks most responisible for UAL's massive cut in cost, and improvements in operational performance..... The employees who accepted massive paycuts and still pull rabbits out of a hat every day to keep UAL one of the best in the business.

 

[dc3fanatic]

19 Million shares for 400 members of 'senior' management? Why would a company need 400 'senior' managers? I say the company is still too top heavy!

Senior is a ralative term. It's all in how you define it. When is a pilot 'senior' or a FA?

 

[scuba]

Did any pilots or FA's participate in the 19 million share split? I think if you are a senior pilot or FA then you deserve what your seniority will hold. If the 'senior' roles of management are still in fact 400, and there are only 57,000 employees left at UA, (down from just over 100,000) then that would equate to 1 manager per 142.5 employees. I know the manager at the station I worked at never put in more than 40 hours per week in my eight years. Even the station supervisors don't put in more than 40 hours. So yes, UA is still top heavy with 'senior' level management.

Besides, if the new class of stock trades for $10.00 on opening day then those 400 reap a windfall of $475,000 each! (assuming an even split) If it trades at $20.00 they would get $950,000. $21.06 gives them each a $1,000,000.

If you divided the 19 million shares evenly for all employees, then each employee would get 333 shares, and the stock would have to reach $3,000.00 per share before an employee would get $1,000,000.

So, yes I do have a problem that senior management walks away with a 'gift' that will be valued at minimum six digits. I would think anybody else would also. Considering how much pilots lost in the ESOP deal, how much the individual employee has given up in pay cuts, how much the retiree has lost due to the PBGC assuming the pensions. Maybe those shares should instead be added to the shares given the PBGC to assist in the assumption of the pensions.