ualdriver said:
Fly, your post is an absolute joke. If you really think that the AFA has somehow given up more than ALPA, or that it has given up more than its "fair share" then you really need your head examined. During the first round of cuts, ALPA made up 25% of the payroll yet gave up over 40% of the required cuts. The PBGC will cover the VAST MAJORITY of the AFA's pension obligations. ALPA guys/gals will lose their shirt. You know why the AFA is so angry about the latest round of cuts? Because this time, they actually have to give their fair share, and that's very difficult for that group to deal with.
"There are some differences between the pilots' summer of 2000 and the flight attendants' proposed CHAOS. In the summer of 2000 the pilots were never in danger of losing their six figure income as to where today the salary of the flight attendants, who only make an average salary, will fall to obscenly low levels. Also, the pilots plans in 2000 were unannounced to the public as to where the AFA is giving the public ample warning of what could happen."
Are you kidding me aafc? So the much exaggerated summer of 2000 was not OK because we didn't "give notice", but a threatened CHAOS job action that will more than likely lead to the liquidation of United Airlines is OK? You're kidding, right? FYI, after this next round of paycuts, you can take pleasure in the fact that I will be one of the LOWEST PAID 737 Captains in the entire industry (bottom 10% from the numbers I've seen). When UAL flight attendants are one of the LOWEST PAID flight attendants in the entire industry, then I'll start to feel bad. And before every UA flight attendant starts crying poor mouse, make sure you post all your competitors pay rates (say 10 year pay rates) to back up your claim.
[post="228922"][/post]
read these you arrogant prick
United defends planned pay cuts
Compensation 'would remain competitive,' air carrier tells court
By David Kesmodel | Rocky Mountain News | 12.16.2004
United Airlines, which is trying to persuade its workers to grant further pay and benefit cuts, said in a bankruptcy-court filing that its proposed new compensation levels still would surpass or rank close to those at other U.S. carriers.
As painful as concessions would be, compensation "as a whole would remain competitive," the airline said.
Average wages would exceed those at the 13 other largest U.S. airlines for utility, ramp and customer-service employees and would be close to the average wages for pilots, flight attendants and mechanics at the same carriers, United said.
Further, it said, most union workers would keep enjoying benefit premiums above 20 percent.
Flight attendants would face the largest wage gap compared with peers at major and midsize carriers, with average pay 7.5 percent less.
United said it needs labor concessions worth $725 million a year by mid-January or it risks breaching terms of its bankruptcy loans, which could ground the Chicago- based carrier. It also says it likely will terminate its pension plans to save more than $600 million a year.
"United must reduce its labor costs expeditiously," the airline said. "Under current projections, the company's cash balance will sink to precarious levels during the historically lean winter months, putting the entire operation at risk."
United must maintain at least $750 million in unrestricted cash under terms of its bankruptcy loans. Its lenders won't "tolerate inaction in the face of continued losses that imperil United's viability," it said.
Joe Tiberi, spokesman for the International Association of Machinists, United's largest union, declined to comment on any aspect of the carrier's filing. The union represents utility, ramp and public-contact workers, among others.
"We'll respond through the legal process but not through the media," said Sara Dela Cruz, spokeswoman for the Association of Flight Attendants, United's second-largest union.
The pilots union has reached a tentative pact with United on cost cuts. No details have been released. United earlier said it required $191 million in annual cuts from pilots.
The carrier has been negotiating with all its unions in hopes of reaching agreements soon after New Year's Day.
United made the voluminous filing in U.S. Bankruptcy Court in Chicago. It was submitted in support of its request that the court void its labor contracts and let it impose terms if negotiations fail.
United, the operating unit of UAL Corp., is the biggest carrier in Denver and the second-biggest U.S. carrier after AMR Corp.'s American.
The airline is struggling to climb out of bankruptcy after two years in court protection and after garnering $2.5 billion in annual labor concessions last year.
It said it projects an operating loss of $725 million next year if it fails to gain further concessions. In its bid for federal loan guarantees, which was rejected in June, it forecast a $1.27 billion operating profit. Operating results exclude interest payments and special gains or charges.
United has consistently failed to meet its executives' financial projections in recent years. It hasn't made a net profit since the Clinton administration.
In its filing, United emphasized that its performance suffered this year from higher-than-expected fuel prices. It also has been hurt by widespread low fares as it grapples with fierce competition from discounters.
United, which has cut fares on some routes in which it battles discounters, said it competes with low-fare airlines on more than 80 percent of its domestic routes, double the figure from a decade ago.
The company not only has been outperformed financially by most low-fare carriers, but it also has been outshone by most major airlines.
American, despite its own financial problems, posted a $211 million operating profit for the first nine months of 2004, while United posted a $284 million operating loss
United stands at precipice
By Kelly Yamanouchi | Denver Post | 12.6.2004
United Airlines disclosed for the first time this week how dangerously close it is to failure if it cannot cut costs, and it said that employees, travelers and cities would suffer greatly if it failed.
"The consequences of a failure to reorganize United would be devastating," said a bankruptcy court filing by United parent UAL Corp. "With the difficult circumstances facing other carriers, most of United's employees would be unable to find other jobs in the airline industry, especially not at other legacy (major) carriers."
United's filing was in support of its motion to void its existing labor contracts.
Industry analyst Darryl Jenkins, a visiting professor at Embry-Riddle Aeronautical University in Florida, said the potential fallout from a United failure is not reason enough to rule in favor of the motion.
"The reason for the court to act is to keep as much value to the assets as possible," he said.
United said a failure would mean unsecured creditors would receive virtually nothing on their claims, suppliers and vendors would lose a major customer and "airports would be left with empty gates." Many cities would lose all flight service, and "gone would be United's indispensable role in maintaining the competitiveness of the U.S. airline industry."
Jenkins called United's gloomy self-prognosis "all true."
"The people would not find other jobs in the airline industry," he said. "The stockholders are all wiped out anyway."
He said of United's eleventh-hour efforts to reach new contracts with its labor unions, "Somehow or another you're going to have to find a way to do this and maintain the peace. These are very, very dangerous times."
United didn't say what effect a shutdown would have on Denver International Airport, but one top city official has said he believes the loss of the carrier would be an "economic-development catastrophe." United employs more than 6,000 people from its Denver hub.
The company's motion to terminate its labor contracts effectively puts time pressure on negotiations for cost-cutting agreements that would avoid a judge deciding the matter after a January hearing.
United forecast it will sustain an $804 million operating loss this year. It expects a $725 million operating loss for 2005.
United was required to update lenders this week on progress in achieving cost reductions. The company has reached a tentative agreement with the negotiating committee of its pilots union but is still in talks with other unions on cost cuts.
United received a waiver of a requirement in agreements with its "debtor-in-possession" lenders to meet certain financial requirements through December on the understanding that it would begin reducing labor and other costs by mid-January 2005, the filing showed.
"Failure to secure the proposed cost reductions would jeopardize United's future," the carrier said. Its lenders would be able to foreclose on their collateral, which is "virtually all of the company's assets" not encumbered prior to bankruptcy.
Without the labor-cost reductions taking effect by Jan. 15, United said it may be unable to renegotiate covenants with lenders.
Meanwhile, United must maintain a cash balance of at least $750 million, according to the agreement with lenders. But the company expects its cash balance to fall below $900 million for most of the first half of next year and below the $750 million floor in early May. The January and February levels are too close to the minimum in the volatile airline industry, the company said.
That puts the airline at risk of "potentially calamitous effects."
United said that if it does not terminate its pension plans or secure equivalent savings and reduce labor costs by $725 million per year, it will "burn through more than $1 billion in cash each year until it runs out of cash."
United has sought to get the consent of its unions to terminate its pension plans.
The company said it also proposes a wage cut of 9 percent to 12 percent for unionized workers, 4 percent of which would be temporary.
Wages for union employees at United are 2 percent to 19 percent higher than average wages for workers in all other airline jobs with the exception of flight attendants, whose pay is 1.8 percent below average, according to the filing.
Members of the Association of Flight Attendants at United are voting on a strike in the event their labor contract is voided, but according to United, the Railway Labor Act and bankruptcy code would not allow employees to strike.
United said in the filing it will eliminate at least 300 salaried and management jobs. It started a voluntary separation program this month, offering extended travel benefits in exchange for employees' departure.
The company argued that many others besides workers have made sacrifices in its attempts at restructuring.
It said its bankruptcy "will wipe billions of dollars of debt" off its books, leaving its unsecured creditors with claims "worth pennies on the dollar for the original debt owed to them by United."
note where we stand in relation to our peer , here and at other carriers... and by peers here i mean human being who have to eat daily
oh yeah merry xmas