United Airlines and Flight Attendants Reach Tentative Agreement on Contract Concessions To Avoid Ban

avek00

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Aug 28, 2002
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http://biz.yahoo.com/prnews/021110/nysu013_1.html
Press Release Source: Association of Flight Attendants
United Airlines and Flight Attendants Reach Tentative Agreement on Contract Concessions To Avoid Bankruptcy
Sunday November 10, 6:21 pm ET
CHICAGO, Nov. 10 /PRNewswire/ -- Representatives of the United Airlines Master Executive Council of the Association of Flight Attendants, AFL-CIO, and United Airlines management have reached a tentative agreement on changes to the Flight Attendant Contract that will provide United with $412 million in savings over the next 5 1/2 years. This tentative agreement achieves the airline''s goal of getting the cost savings it needs from the Flight Attendants to obtain approval of the Air Transportation Stabilization Board for a loan guarantee, gain access to capital markets, and keep the airline out of bankruptcy.
The Recovery Plan tentative agreement, reached early Saturday morning, Nov. 9, was presented to the members of the AFA United MEC on Saturday and Sunday. The MEC voted unanimously Sunday to endorse the Recovery Plan tentative agreement. It is being sent to the Flight Attendants for ratification by November 30, 2002.
These Flight Attendant sacrifices will enable our airline to obtain the ATSB loan guarantee, avoid bankruptcy, and return our airline to premier status in airline industry, said AFA United MEC President Greg Davidowitch. The Recovery Plan tentative also provides the Flight Attendants with a return on our investment in United in the form of profit-sharing and stock options.
Details will not be released until the Flight Attendants get a chance to review the tentative agreement.
More than 50,000 Flight Attendants, including the 26,000 Flight Attendants at United, join together to form AFA, the world''s largest Flight Attendant union. Visit us at http://www.unitedafa.org.
 
Fantastic!!! Three down, two to go. We will make it through this!!!!!

 
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On 11/10/2002 10:13:10 PM Segue wrote:

How did the get by with $412MM? Peanuts. I guess they expect the IAM to pick up the rest....
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No, actually most F/As I have spoken to expect the IAM to be stubborn beyond reason until the end and drive UAL into bankruptcy, in accordance with past practice.
 
Lets see 2.2 bil + 412 million = 2.61 billion that leaves 3.19 billion for IAM 141/141M , management non union , and whoever the dispachters union is.I hope for our sake the management and non union part of the plan is realistic cause I do not see the IAM taking the bulk of the 3.19 billion.Rumor is a paycut in the 8% - 10% percent range for IAM 141, but who knows ? its all speculation.I expect this week to be interesting because they told me after AFA got there tenative agreement the IAM would be up next and management and non union would have to figure out what to do with whats left. Buckle your seatbelts
 
[blockquote]How did the get by with $412MM? Peanuts. I guess they expect the IAM to pick up the rest....[/blockquote]

Actually, there is a logic that's emerging from the numbers that seemS to indicate the company is taking a very reasonable approach with the unions.

United wants 5.8 billion over 5.5 years. Pilots are 40% of the payroll, while flight attendants are 7%. The corresponding dollar values of each group's concessions, 2.2 billion and 412 million, have about equaled our respective shares of the payroll pie, 40% and 7%.

I find that bit of arithmetic a very good sign from management that the process at least from appearances is progressing in a legitimate and fair manner.

Wow...could it really be that we might all play on the same team at once!! Scuse my enthusiasm, but I've been hoping for this since 1984. Maybe this is the start of a really kick ass airline again, no strike that....THE KICKASS AIRLINE. I read what's between the lines as VERY ENCOURAGING NEWS

yyyyyyeeeeeeeeehhhhhhaaaawwwwwwwwwww!!!!!!
 
No...I'm afraid you are looking at the beginning of a very old airline...old pilots...old mechanics...and old flight attendants...and I've been waiting since '86
 
I am actually just happy to see the AFA agreeing to anything. Based on the things I have read they have a history of not participating in things when it comes to recovery at UAL. I figured they would be one of the last groups to make any kind of concession. Seems like they finally realized what is on the line.

Now, its the IAM not participating. Whatever warped logic is behind it, the IAM thinks that not talking, and not having some control over the cuts that they end up taking is a good thing. I just hope that they can figure something out before a BK judge has to come in and make the decisions for them.
 
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Actually, there is a logic that's emerging from the numbers that seemS to indicate the company is taking a very reasonable approach with the unions.

United wants 5.8 billion over 5.5 years. Pilots are 40% of the payroll, while flight attendants are 7%. The corresponding dollar values of each group's concessions, 2.2 billion and 412 million, have about equaled our respective shares of the payroll pie, 40% and 7%.
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How is the rest of the pie split up? IAM - ???%, management - ???%
 
More great news! The F/A's will have the longest ratification process of all UA unions, so it's good that they've agreed now. I don't think their $412 millions contribution is peanuts. Let's remember that the F/A's did not get large post-ESOP wage increases. Yes, we can debate until the cows come home their decision not to participate in ESOP and instead sign a 10-year contract, but the fact remains that I think it would be unfair to cut their wages as deep as those of us who received wage increases. However, I would hope that part of their contribution includes work rule/scheduling changes that bring efficiency up a bit. As usual, the devil is in the details.

Now, if only the IAM can stop prolonging the inevitable.
 
IAM Disrtict 141 is talking with the company.
District 141M is not and I think the mechanics
are just waiting to go last,or the companys
proposal is so bad it is unacceptable,and I
know the spiel about BK.
 
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On 11/11/2002 1:31:10 AM spacewaitress wrote:

[blockquote]How did the get by with $412MM? Peanuts. I guess they expect the IAM to pick up the rest....[/blockquote]

Actually, there is a logic that's emerging from the numbers that seemS to indicate the company is taking a very reasonable approach with the unions.

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Please remember, this logical approch from management originated when the Union Coalition got itself together and knocked the original 9 bil over 6 years down to 5.8 over 5 1/2 years. This is still a significant savings, but not the unreasonable amount that was originally presented. When faced with a cohesive union front, mgmt. decided to play ball in a reasonable way. All of the unions, including the IAM (despite what some would have you believe) have benefited from the Coalition and its efforts.

Also, everybody needs to keep in mind that ALL of the unions were at the table when they divided up the pie and determined which union would be responsible for what portion of the 5.8 bil. The other unions were well aware of what the AFA was going to give up when they signed off on the framework of savings they gave to the company. The AFA is getting away with nothing, they are merely meeting their responsibilites as established by the Coalition framework.
 
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On 11/11/2002 12:51:22 AM Segue wrote:

The FAs will continue to be able to affort continueing supsriptions to Cosmo...at least until chapter 11 comes.
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Hey, it works for me!
 
Yes,

The winds of change are brewing. There seems to be a lot of gossip going around in the management ranks, who is taking who's spot and the like. It seems Mr. Tilton is quite good at reading people. There will be structural organization changes coming soon. These will be the changes that should of occurred last Fall.

Yes, it's unfair to all of us that we are in this. But we are all in this together. We can continue to fight amongst ourselves, or we can get this done and position ourselves to be what we should be.