United Flight Attendants Threaten to Cancel Deal with Management

April 11, 2005
United Airlines flight attendants threatened to tear up a cost-saving deal with the bankrupt carrier, accusing company leaders of failing to demonstrate that they have cut their own salaries.

CHICAGO (AP) -- United Airlines flight attendants on Friday threatened to tear up a cost-saving deal with the bankrupt carrier, accusing company leaders of failing to demonstrate that they have cut their own salaries as promised.

The Association of Flight Attendants told United it would cancel the agreement it hammered out earlier this year in 20 days unless management at the Elk Grove Village-based airline could show it had slashed its own pay, the union said in a statement.

United operates a hub out of Denver International Airport, where it is the largest carrier.

United has said it needed $725 million in total cuts from all employees to help it exit Chapter 11 bankruptcy. The airline pledged to spread those cuts among all employees, including management.

But the union said it hasn't seen audit figures showing that United executives and other salaried employees have made appropriate concessions.

Flight attendants reluctantly approved a new five-year contract in January that reduces their hourly wages by 11.8 percent and 9.5 percent, respectively. It was their second round of pay cuts in bankruptcy in two years.

If the current contract is canceled, the previous one would be in force, the union said.

''Our members agreed to huge sacrifices to help our company survive,'' union head Greg Davidowitch said in the statement. ''Now, by refusing to substantiate the concessions by the salaried and management employees, the entire restructuring plan is called into question.''

United spokeswoman Jean Medina denied the union's claims, insisting United has met all its obligations.

Medina also said the union's ultimatum distracts from other issues, including the need to resolve disagreements over pensions. The airline is moving to eliminate defined-benefit pensions as part of its strategy to exit bankruptcy.

''This is just absurd at this point when we should be reaching a resolution on the pension issue,'' Medina said.