From: MEC Communications [mailto:ualmec-fastread@ames.alpa.org]
Unity Update #11
MAY 27, 2009
THERE YOU GO AGAIN, JOHN.
John Tague is once again engaging in obfuscation. In his two most recent letters to United Airlines employees on the subject of the Continental-United application for anti-trust immunity, he states:
“… It has been suggested by ALPA and the AFA that our anti-trust immunity has ‘the potential to outsource’ U.S. jobs. This is simply not true, and there are absolutely no facts to support it. …”
If this was “not true”, then United and Continental Airlines would have no objection to inserting labor protective provisions. Instead, both airlines have refused, and their ATI application simply asks for an all-encompassing right to operate with global antitrust immunity wherever and whenever they choose.
Tague writes:
“…Alliances have created 15,000 U.S. airline jobs. …”
Those 15,000 jobs were created by ALL the alliances, not just the Star Alliance, and include low paying copilot jobs at regional airlines. The record is clear: Since the Star Alliance was formed, United Airlines has SHED 52,000 jobs.
United’s attitude towards its employees’ desire for job protection stands in marked contrast to Delta Airlines, whose CEO, Richard Anderson, last Friday publicly reiterated the carrier’s goal of avoiding layoffs as a result of Delta’s recently-announced alliance with Air France-KLM Group.
On May 26, Tague sent an email to all employees titled “Support for Anti-trust Immunity” in which he reprinted a May 22 letter from CAL-MEC Chairman Jay Pierce to Congress as evidence of the CAL pilots’ support for the ATI. Actually, in this letter, Captain Pierce is voicing his objections to the ATI’s sunset provisions. In a letter today to UAL-MEC Chairman Captain Steve Wallach printed below, Captain Pierce adamantly expresses his insistence that “… ATI with proper labor protections included is essential.”
U.S. House of Representatives Transportation and Infrastructure Committee Chairman Jim Oberstar has also expressed his concern and support for our position. In a recent letter to UP-PAC Administrator Captain John Barton, Chairman Oberstar wrote:
“Thank you for your very thoughtful comments about United Airlines’ efforts to obtain antitrust immunity with Continental and other partners of the Star Alliance. I agree with you. Nothing … has disappointed me more than the continuation of the move toward these global alliances, with their negative consequences for labor and for air travelers. In the FAA reauthorization bill, I will do my best to halt the momentum and to shine the bright light of public scrutiny on ATI’s consequences.”
What is “simply not true” is that ALPA is opposed to a Continental-United ATI. ALPA is NOT opposed to the Continental-United ATI, only to a Continental-United ATI that doesn’t include labor protective provisions. If we employees of United Airlines really don’t have to worry about more of our jobs being outsourced as a result of this ATI, then United should have no problem submitting an amended application that includes labor protection provisions.
UNITY OF PURPOSE BRINGS POWER
THERE IS POWER IN UNITY
U N I T Y
March 13, 2009
Dear Fellow Pilot,
Regional Chief Pilot Michael McCaskey has issued a decision of
termination against Captain Steve Tamkin, LAXFO, former chairman of the
Industrial Relations Committee and one of the four named defendants in
the case of United Airlines v. ALPA. Despite Captain Tamkin’s
outstanding record as a United pilot (as McCaskey had to admit),
McCaskey nonetheless rendered his decision to terminate Captain Tamkin’s
employment with United Airlines. Captain Rob Domaleski last week was
given a 60-day suspension by the Northeast Regional Chief Pilot.
Notwithstanding Company statements that the United Airlines v. ALPA
lawsuit is “not a lawsuit against pilots,”1 the Company has clearly
demonstrated that this was indeed a lawsuit against pilots. Under oath,
the four defendants stated that they were not responsible for an alleged
sickout of some pilots that affected operations in July, but instead
were attempting to stop it. Even the court admitted that the alleged
sickout evidence against these individuals was merely “circumstantial.”2
The Company has its preliminary injunction and will attempt to seek a
permanent injunction against ALPA. So, one would then ask, to what end
does the company expect to achieve by filing Letters of Charge and
seeking termination against MEC committee members? The answer is
obvious. The Company’s intent, as it has demonstrated through its hiring
of certain managerial employees and the actions it has taken throughout
the last several months, including whisper campaigns, individual
communications and personal contacts, is to undermine and destroy not
only your union at United Airlines, but your very unity. Why? Because
management well knows that your unity is the key to our success in the
upcoming negotiations.
So management’s intent is to demoralize and cast aspersions on every
pilot on this property. If it is not these four defendants, then it
could be anyone. It could be you. This is not an attack against ALPA per
se, but an assault on any group or individual that would dare to oppose
or seek change to the current contract or to this management group.
The four named defendants were ALPA members of an MEC committee doing
the very best work that they could for our pilots, but who faced a
Company that is hell-bent on finding any reason to attack this union in
its attempt to silence us. Any of the defendants could easily have been
any one of us who professionally carries out his or her job every day
with the safety, security and comfort of our passengers in mind, who has
a legal contract with his employer, and who follows the letter and
intent of the law. Who will be the next to be made an example? Rest
assured, ALPA and this MEC will use every and all resources available to
defend the integrity of these individuals. Our goal is to see Captain
Tamkin and each of the other defendants fly the rest of their careers in
a United Airlines cockpit, long after the current crop of so-called
managers have departed.
The MEC and its leadership are ahead of this and will handle it within
the legal and contractual system. Please do not misinterpret these words
or this letter as a “signal” or “code” for improper actions, and please
do not respond to the company’s actions in any way that affects the
operation. We, as United pilots, have fully complied with the
preliminary injunction, and we will continue to do so. Management is
just waiting to run back to court for a contempt citation or take other
steps to interfere with our rights under the Railway Labor Act and to
further their campaign to subjugate the United pilots. We are not going
to give them that satisfaction.
In Unity,
Captain Steve Wallach
Chairman, United MEC
Jan 23, 2009
In a message from the Chairman of the airline's ALPA MEC, Steve
Wallach told the troops,
"The day after reporting one of its worst quarterly financial results
in history and after furloughing an additional 254 pilots (bringing
the total to 606 pilots), United Airlines announced today that it has
entered into what it calls an "innovative" partnership with Aer
Lingus"....He then added, "Aer Lingus has advised the Irish press that
this joint venture will operate an Aer Lingus aircraft with neither
United nor Aer Lingus employees, under a separate operating
certificate and under newly established wages and working conditions.
Obviously, this partnership will be accomplished at the expense of
United's and Aer Lingus' own pilots and other employees. This
development, where United attempts to establish an airline operation
without the use of United aircraft or employees, is nothing less than
the outsourcing of jobs to an international company, and clearly
demonstrates that this management continues to make business decisions
without regard to its pilots and other employees... ..The United pilots
are exploring every option to put an end to the company's blatant
disregard and lack of loyalty to the United Airlines brand."
December 16, 2008
Dear Fellow Pilots:
Throughout its 82-year history, United Airlines has always generated a tremendous amount of customer loyalty. The main reason for this loyalty is the high esteem in which the customers hold United's pilots and its frontline employees. Our passengers know that as advocates for our passengers, the pilots of United Airlines are second to none.
We pilots have always gone the extra mile for our passengers, and this has never been more important than during holiday seasons, when we are entrusted with so many first-time and infrequent fliers. This year's holiday season will be particularly challenging: Not only will we be faced with the usual winter weather, but we also have to cope with the company's extremely impractical December schedules that have crammed so much flying into the proverbial five-pound bag.
This week, I am issuing the following letter to the passengers of United Airlines. This letter represents our commitment to their safety and comfort:
"As the Holiday Season approaches, the professional pilots of United Airlines want to assure our passengers that whether you are headed home to share the holidays with loved ones or enjoying vacation travel, we'll continue to go the extra mile to make sure that you get to your destinations in comfort with minimum stress and inconvenience.
"We are very much aware that the friendly skies have become less friendly in recent times because of increased costs, reduced flights and cutbacks in in-flight service and amenities. We have been at the forefront when it comes to resisting these cost-cutting initiatives because we do not believe that our passengers should be penalized for the mistakes of United's management. We still feel that way and are still fighting the fight on behalf of our passengers.
"As we get into the winter months, we want you to know that United is an all-weather airline. United pilots pioneered many of the safety innovations such as onboard weather radar, anti-skid brakes, enhanced weather forecasting, and improved navigation instruments that allow safe operation in inclement weather. And we will not allow our airline to fabricate excuses for not serving the needs of our passengers.
"On behalf of United's professional pilots, we want to extend our best wishes to all for a joyous Holiday Season. We will continue to do all that we can to make the skies friendlier for our valued passengers who continue to be our number one priority."
I am confident that United's pilots will rise to the challenge, and that we will demonstrate, as we always do, that we are on the side of the passengers. We may not have any control over unbundled revenue streams (read frivolous service fees), or the fact that our passengers' knees are jammed into the seats in front of them, or the fact that if we offer them any food at all, it's at a seriously inflated price for a cardboard box of stale junk food, or the fact that they've had to wait hours in line to check in because United has slashed customer service staffing levels to the bone, and so on. Remember, the money for executive bonuses has to come from somewhere. But we pilots have a tremendous amount of control over the operational side of getting people home for the holidays as safely and comfortably as possible.
In conclusion, we pilots of United Airlines set the tone. Ladies and gentlemen, the employees of United Airlines have always been a "class act," and we will carry on that tradition, no matter what obstacles we have to overcome. The time to demonstrate our continuous commitment to our passengers has never been more important than now, as we begin the holiday travel season. We should never forget that this is our airline.
I know I can count on you to continue the professionalism for which we are justly famous.
Fraternally,
Captain Steve Wallach
Chairman, United MEC
UAL ALPA Council 12 Special Legislative Update - Dec.13.08
Dear Council 12 Pilots:
Last night I received word that the there was final passage in the Senate of H.R. 7327, The Worker, Retiree, and Employee Recovery Act of 2008. Although this legislation is far from a “done deal”, your Council 12 Legislative Committee believes that it is our responsibility to keep you informed on a timely basis of Legislative issues that directly affect you as United Pilots, so that you can stay involved in the Political and Legislative process.
H.R. 7327: The Worker, Retiree, and Employee Recovery Act of 2008
On Thursday, December 11, the Senate passed, by unanimous consent, H.R. 7327, the Worker, Retiree and Employee Recovery Act of 2008. This bill had been approved by the House of Representatives -- also by unanimous consent -- on Wednesday, December 10. Included in this measure is language from the Lost Retirement Savings Act, which allows airline employees who received bankruptcy claim or note proceeds after 9/11 the ability to roll into a Roth IRA some or all of that money, if they so choose. This means that thousands of pilots whose defined benefit plans were either terminated or frozen as a result of bankruptcy would now have the option of putting those monies into a Roth IRA. Potentially, $2 billion could now be put into this retirement vehicle by those affected pilots. Participants would have 180 days after the date of enactment to make this election. The bill now goes to the President who is expected to sign it in the near future.
While the provision is not the complete version of the Lost Retirement Savings Act, it is a significant victory for those pilots at Delta, Northwest, and United whose plans were either terminated or frozen. They now have an option that did not previously exist to try to make up some of those benefits taken away in bankruptcy.
This is one of the first Legislative “Wins” that Airline Employees have had since the September 11th terrorist attacks. We would like to thank everyone who took the time to contact their elected officials on this important piece of legislation. Your participation makes a difference!
H.R. 2103/S.1270: Pilots Equitable Treatment Act
On a separate issue, many Council 12 pilots have asked about the status of the Pilots Equitable Treatment Act (H.R. 2103/ S.1270) sponsored by Rep. George Miller (D-CA) and by Sen. Daniel Akaka (D-HI). As many of you know, this legislation would put pilots on an even footing with respect to guaranteed benefits payable from the Pension Benefit Guaranty Corporation (PBGC). H.R. 2103/ S.1270 would treat the FAA mandatory retirement age in effect at the time of plan termination as the “normal” retirement age in calculating PBGC maximum guarantees.
I recently met with Senator Akaka on this subject. The Senator assured me that the bill would be reintroduced early in the next legislative session and with the incoming more “labor-friendly” makeup of the House and Senate, passage is expected. President-Elect Obama was a co-sponsor of the Senate version of the bill, so it could reasonably be assumed that he will sign the final legislation.
New York City Slot Auction
On Monday, December 8, the United States Court of Appeals for the District of Columbia blocked the FAA’s controversial plan to confiscate and auction off slots at the three New York City metropolitan airports. The stay, which was granted in a suit brought by the Port Authority of New York and New Jersey, puts this proposal on hold. Although the incoming Obama Administration has not indicated a position on slot auctions, it is expected to shelve the idea and find new ways to deal with congestion in the New York City area.
We will continue to keep you informed as Legislative issues come up.
Fraternally,
Capt. Dave Harris, C12 Legislative Chairman
F/O Don Naman, C12 Legislative Member
F/O J.D. Williams, C12 Legislative Member
__._,_.___
To: United Pilots
From: MEC Communications
On August 19, 2008, Jay Milone, United's managing director of Labor Strategy-Flight, sent a letter to MEC Chairman Captain Steve Wallach regarding pilots wearing "Glenn's Gotta Go" wristbands. Mr. Milone tells Captain Wallach that such actions "can only harm United, and by extension, harm all of us."
"Our employees do great work everyday for our customers, and disparaging each other in any way only distracts from all our efforts," he wrote.
Mr. Milone said his letter to Captain Wallach was not about the wristbands, but about "treating each other with respect."
* * *
Today, Captain Wallach answered Mr. Milone's letter, saying, in part, "I understand your point that the issue is 'about treating each other with respect' but respect is a two-way street. Mr. Tilton and his management team have gone to great lengths to attack ALPA, our junior pilots and the individual defendants in federal court. This has been done despite the union’s efforts to assist the company in its operations. Is this a form of 'respect'? You tell me that '[w]e appreciate your support and look forward to continuing to work productively with you,' but I fail to see how your lawsuit shows appreciation of my support, or ALPA’s, nor do I view that filing as working productively."
United Pilots Call for Tilton to Resign as CEO
August 11, 2008—The United Chapter of the Air Line Pilots Association (ALPA) today called for the resignation of Glenn Tilton as CEO of United Airlines (NasdaqGS: UAUA) and stressed the need for new leadership and direction at the helm of the air carrier. United Airlines now ranks at the bottom of nearly every performance and customer satisfaction category, and its financial performance is steadily deteriorating.
The United Chapter of ALPA has launched a Web site (www.GlennTilton.com) that highlights the failures of Glenn Tilton’s management. United’s passengers, investors, media and the general public are invited to visit www.GlennTilton.com for detailed information on why Glenn Tilton must go.
“Under Glenn Tilton’s tenure, United has gone from being the finest airline in the world, with the best route structure and safety record, to a shell of its former self,” said Captain Steve Wallach, chairman of the United Master Executive Council. “He has had every opportunity to turn this company around, and tap the abilities of its first-class employees, but instead he has run it into the ground. We believe that with the intense challenges facing our industry, United Airlines will not be able to thrive as long as Glenn Tilton, with his proven record of incompetence, continues as CEO. It is time for Glenn Tilton to go.”
With Glenn Tilton in charge, United Airlines has gone from being the world’s preeminent airline to the bottom of nearly all performance and customer satisfaction categories:
In performance, United ranks 18th of 19 for on-time arrivals; 17th of 19 in customer complaints and tenth of 19 for misplaced baggage, according to the latest Department of Transportation data.
In customers’ willingness to pay for the product, despite capacity reductions, load factors in the first 6 months of 2008 are down 2.6 percent, compared with a similar period in 2007.
In stock performance, UAUA is down 73 percent since United exited bankruptcy on February 1, 2006.
In profitability, United has lost more money in 2008 than it has made since exiting bankruptcy.
In overall reputation, United is rated “below the rest” and tied for last place on the latest J.D. Powers satisfaction study.
A recent “Employee Climate Survey” conducted by United revealed that only 38 percent of United employees take pride in United, down 15 percentage points from 2006. Average Fortune 500 companies find that 84 percent of their employees express pride in the company for which they work. Sixty-two percent of United’s employees are not proud of their company, 70 percent are dissatisfied with their jobs, 73 percent are looking for new jobs and 77 percent do not think United is a great place to work.
“This is not a personal attack on Glenn Tilton,” said Captain Wallach. “These dismal numbers speak for themselves. They are a reflection of his inability to lead, his incompetence as a manager and his failure in virtually every category that can be measured. We have tried every conceivable way to convince him to invest in, and maximize the goodwill of, his employees. He has failed miserably.
“We continue to believe that United can restore its place among the leaders in the airline industry, and we continue to urge all United pilots to work to bring about that goal,” said Captain Wallach. “But time is running out. United faces tremendous challenges. The first step must be a change in leadership and direction.
“It is time for Glenn Tilton to go.”
For more information on why Glenn Tilton should resign, go to www.GlennTilton.com.
United MEC In the Media
CNBC's Squawk Box (August 12, 2008)
Chicago Tribune (August 12, 2008)
Special Message from MEC Chairman Captain Steve Wallach
August 1, 2008--As you are probably aware by now, on July 30 United Airlines filed a lawsuit in federal district court in Chicago alleging that ALPA and individual pilots have engaged in unlawful activity by encouraging pilots to call in sick and to refuse junior/senior manning assignments. The federal judge today set that motion for a hearing on August 27, 2008.
The United MEC is taking this opportunity to confirm its position that pilots should not engage in activities either individually or collectively that may disrupt operations. Specifically, the United MEC and its officers do not condone and strongly oppose calling in sick when you are not ill, refusing to accept junior/senior manning assignments for the purpose of disrupting operations, or pressuring other pilots in any way with respect to their individual decisions to accept junior/senior manning assignments.
If there is a continuation of the sick leave levels that United experienced in July, and if United is unable to obtain pilots who will accept junior/senior manning to avoid flight cancellations, United will argue that it is a justification for the court to issue a preliminary injunction. Please understand that this is a serious matter, and that failure to comply with our legal obligations could have serious consequences.
UAL MEC Press Release
United Pilots: UAL Release on Sick Leave Lawsuit ‘Inaccurate, Alarmingly Misleading’
Chicago, July 30, 2008--The United Chapter of the Air Line Pilots Association can confirm that it is in receipt of a lawsuit filed today in federal court by United Airlines against the union regarding sick leave. ALPA attorneys are currently reviewing the complaint.
“ALPA cannot comment on the pending litigation at this time until our attorneys have had the opportunity to review it,” said United MEC Chairman Captain Steve Wallach. “A UAL press release issued today, however, concerning the lawsuit contained inaccurate and alarmingly misleading information. The United Chapter of ALPA believes this is not a constructive approach to labor relations.”
Contact:
Dave Kelly
847/292-1708
July 15, 2008
Dear fellow pilot,
Recently, this Corporation compared our current environment to the crisis of September 11 which led to the bankruptcy we entered nearly six years ago. My observation is that the bankruptcy storm was weathered on the backs of the pilots and other employees through our sacrifices. The company will not enjoy that same luxury to get through this latest crisis. The pilots and other employees simply have no more to give. We're tapped out. It is my belief that if the company expects to weather this storm, it must find a way to appeal to the employees' goodwill, and it is my opinion that this employee group is not inclined to follow this management group anywhere.
No one disagrees that the environment today is different from that of last year, last month or even last week. The price of jet fuel sets record highs day after day. The price of an airline ticket is modestly increased, fuel surcharges are added, baggage fees are imposed and soda charges are collected. At home, the cost of gasoline to fuel the cars we drive to work moves upward; the loaf of bread, gallon of milk, and dozen eggs that we buy to feed our families cost more. In the workplace, our hours are longer and our pay remains stagnant while the cost of living skyrockets. We are confronted with maintenance challenges, we are confronted with scheduling challenges, and we are confronted with weather challenges. Yet, we continue to exhibit the highest degree of professionalism in providing our customers with safe, reliable transportation. For all our efforts, this company continues to display its total lack of respect of the front line employees who make this airline fly everyday.
For more than seven months your union has confronted this management with the undeniable fact that the contract you and I are currently burdened with is no longer acceptable, viable or sustainable. Despite being in the same environment, I don't have an answer when you ask, "Why do American's pilots make more than I do and still have their pension?" "Why are Southwest's pilots treated better by their management?" "What is it about Continental' s management that they announce layoffs and in the same breath said they would forgo their salaries for the remainder of the year?" "Why are we so different?"
We face a focused, hostile and arrogant management group: a management group that gives not a damn about you, your well-being, or the well-being of your family. A management group that has rewarded everyone but the frontline employees who make this airline fly everyday. They have rewarded themselves with exorbitant bonuses, they have rewarded the shareholder' s with untimely dividends and they have rewarded the banks with premium fees for the pre-payment of debt and covenant relief.
Since my election last October, your MEC leadership and I have been busy with many moving targets. Immediately after our election we learned that United was in serious talks with other airlines about possible mergers. In the event of any such merger, we took every necessary step to ensure that the United pilots would be included at the table of any merger talks. Had a palatable merger gone forward, we would have been successful in our goals of collective gains for our pilots. Subsequently, US Airways was, for us, a "no deal" and we worked hard both in the public eye and behind the scenes to stop that merger. We no longer find ourselves in the merger arena.
Just more than seven months ago, in an effort to restore dignity, respect and financial sanity to our careers, your union took a new tack with this management team. We made it clear that there would be no more concessions from this pilot group, and we repeatedly pointed out to our executives that contented, motivated employees directly affect the bottom line. As recently as last week, I repeated once again that there would be no more concessions.
We have been asking the company to begin negotiations and open our contract earlier than traditionally required. The purpose for this repeated request should be obvious: we continue to live our lives and work our jobs under the onerous contract imposed upon us during bankruptcy. We did not willingly negotiate our present contract. We reluctantly agreed to it only under the duress of bankruptcy. This senior management group does not live under the same contract or even the same environment that we continue to live under. Management's bankruptcy ended in February 2006. Ours goes on and on with no end in sight. They give not a damn.
We have been attempting to negotiate quality-of-life and fatigue mitigation improvements to our contract since January 1st. As recently as May 22nd we exchanged a proposal that would significantly improve your working life in hopes that the company would recognize the value of your goodwill. These negotiations have been slow and unproductive. Most of the focus over the past few weeks has been on the furlough mitigation agreement in which we reached closure on July 10th. While these negotiations led to the recently ratified agreement, what was contained in that agreement was meager at best. As I said in my recent video message of June 25th, many of the items contained are offered out of hand by most company's that find themselves in a similar situation without any negotiation. This management feels, and continues to feel that any "gain" no matter how large or small, must be "offset," management-speak for concession.
I hold out little hope for improvements on the remaining issues. On a pilot early retirement plan (PERP), the company is so far away from a realistic proposal I have instructed the Negotiating Committee to cease discussions on the subject. On the quality-of-life and fatigue mitigation items, items which are of no cost to the company, I have also instructed the Negotiating Committee to cease discussions as each and every counter proposal by the company has contained "offsets." There will be no offsets. When the company realizes that happy, motivated pilots "offset" the costs associated, if any, with quality-of-life improvements and fatigue mitigation, then and only then will you see improvements in your daily work lives.
We all have known that this management group is inept when it comes to the operational side of the airline. United's environment is exasperated by this management's failure to adequately plan and prepare for the future. While other airlines have hunkered down and saved cash to weather the economic storm, United's senior managers squander money on themselves and unwarranted dividends. While other airline executives have foregone salaries during these times, United's executives continue to reward their poor business decisions with millions of dollars. While other airlines are grounding fuel-inefficient airplanes and replacing them with newer more fuel efficient aircraft, United announces a plan to ground up to 100 aircraft, increase its express flying and lay off thousands of employees. While other airlines acknowledge the sacrifices its employees have made in the past, United dismisses the sacrifices of its employees and instead demands more. While other airlines concentrate on reducing costs in today's price-sensitive environment, United continues year after year with the highest costs in the industry. While other airlines concentrate on customer satisfaction, United lags the industry in nearly all consumer ratings.
At the Merrill-Lynch Transportation Conference held June 18 in New York, United unveiled their latest plan. Entitled Back To Basics, here are the goals management sees to getting United back on track: "Industry-leading margin and cash flow, unrivaled customer satisfaction and experience, aligned employees, and world class safety performance. " Take another look at those goals, and decide for yourself how pilots contribute to them. United's pilots contribute significantly to the "margin and cash flow," "unrivaled customer satisfaction and experience" and to the "world class safety performance. " But those contributions go unrecognized and disrespected, except for the occasional hotdog in the domicile. Glenn Tilton justifies his high salary because of all the "hard work" he claims to perform on behalf of this airline. His "hard work" has resulted in our stock price down 91%, customer and service ratings in the toilet, and icy employee climate survey results.
There are many low-cost and no-cost items that would go a long ways towards improving pilots' quality of life, creating goodwill and increasing the bottom line. Examples are opening the contract early to ensure its completion by the amendable date; an effective trip trading system with realistic flexibility; a realistic cap and minimum guarantee; downtown layovers that only cost just slightly more than 10% of management's recent stock take away; and offers to fly 90 seat United aircraft to offset the express RJ-50s that are financially draining - even more important now with the impending 737 groundings. But then this management gives not a damn.
United must learn that goodwill and respect for employees go a long way in a service industry. This company publicly desires the admiration equaling those of Fortune 500 companies but it is not willing to earn it. Respect cultivates respect; and contempt breeds contempt. Engaged employees make aligned employees. We are looking for a new beginning and believe this management group is missing a valuable opportunity by refusing to engage with its pilots and employees.
You will see renewed and focused efforts on the part of your union that will highlight the importance of United pilots' contributions to this airline. Do not discount the efforts all of us make each and every day that enable this company to operate. We cannot get out from under the present contract on time if we do not begin our work now. Stay connected, get on board and be unified.
Fraternally,
Captain Steve Wallach
Chairman, United MEC
Friday, May 30, 2008
Today was the 151st day that the Company could have sat down with its pilots to discuss a complete fair and equitable contract. They chose not to.
That makes 1,857 days (5 years, 30 days) of living under the current draconian contract and work rules negotiated under duress of bankruptcy.
New Speakers Added To Roster for June 12 United Family Unity Rally
Send Our Message DIRECTLY to the BOD and UAL's institutional investors:
Enough Is Enough!!!
Rally at the UAL Annual Shareholders Meeting
Stand together with your fellow pilots & employees
When: Thursday, June 12, 7:30 a.m. arrival
Where: Warner Ranch Park BANDSHELL
21850 Califa St., Woodland Hills, Calif.
Why: 1. To build and celebrate unity among United pilots and other employees.
2. The United Airlines Shareholders and Board of Directors Meeting will be held at 9 a.m. on the same date and the same location as the United Family Unity Rally. United pilots and other employees will have the opportunity to show the United Board of Directors and United Shareholders, among other things, our disgust with the lack of leadership among management of United Airlines, and the corporate greed that continues to permeate the halls of United World Headquarters in Chicago.
Among the Featured Speakers
Rally Info
Will Durst Art Pulaski Maria Elena Durazo
Comedian/Political Satirist Exec. Secretary-Treasurer Exec. Secretary-Treasurer
California Labor Federation L.A. County Federation of Labor
Also speaking: Representatives from the Coalition of United Unions
Meet at Warner Ranch Park, 21850 Califa St., at the Bandshell
Picket the shareholders as they enter the hotel. Let them see you when they leave the hotel. Lunch will be served! Your children can stand next to you or play in the Park’s playground. And listen to LAXFO’s own 777 F/O Kevin Kelly and his rock band Deep Cover
Please send an email to Council 57 (LAX) Strike Preparedness Committee Chairman First Officer Jon Dudley and the SPC at launityrally@aol.com to let them know if you are planning on attending, and how many of your family members and friends will be joining you.
Stay connected to MEC Communications for more information regarding the United Family Unity Rally.
SSC Receives Two NPDMs From Company
The System Schedule Committee states it has received two Notices of Proposed Decision Making (NPDMs) from the company.
? NPDM 08-01, DCA 747 Equipment Domicile, states that since the company will no longer fly IAD – PEK on the 747 after this Fall and the equipment type for future IAD – FRA flying is unknown, the viability of the IAD 747 equipment domicile is in doubt. The company has requested that the analysis on this issue be completed by June 27, 2008.
? NPDM 08-02, 737 Domicile Structure, asks for a review of the entire 737 domicile structure in light of the company’s plan to ground 30 737 aircraft this Fall. They have requested a closing date of July 31, 2008 for NPDM 08-02. They also state that they will exercise their contractual right to issue surplus letters while the NPDM process is in progress.
The NPDM process is described in detail in Letter of Agreement 97-04, Allocation of Flying Protocol. As part of the process, the SSC will analyze data and make recommendations to the company on the specific subjects of the NPDM. While the SSC recommendations are not binding, they are part of a collaborative process as defined in the LOA so the company is obligated to respond to the SSCs recommendations and take them into account before rendering its decision on these subjects.
Local Council Grievance Committee Members Gather for Seminar at MEC Office
MEC Grievance Committee Chairman Captain Jerry Schoofs (seated at the head of the table) and his committee this week hosted Local Council Grievance Committee Chairmen and Members for a Training Seminar in the MEC office in Chicago. Joining Captain Schoofs and his committee (First Officer Todd Insler, Captain Mike Hamilton and First Officer Mark Wurtz) during the two-day seminar were First Officer Scott Kinder, Council 11 (DCA); Captain Jeff Warner, First Officer Don Montague and Captain Mike Wickman, Council 12 (ORD); Captain Scott Gough, Council 33 (DEN); First Officer Dan Jacobson, Council 34 (SFO); First Officer Joe Pedata, Council 52 (JFK); First Officer Dan Smith and First Officer Dan Madruga, Council 57 (LAX); and First Officer Chris Clay, Council 93 (DENTK). First Officer Todd Coomans, Council 12 (ORD) Secretary/Treasurer, also attended the seminar.
MEC Committee News
MEC International Committee Chairman Captain Ray Stratton reports that the latest IFALPA Safety Bulletin includes important information regarding cabin air quality issues and the potential health risks associated with our work environment.
Read the latest IFALPA Safety bulletins on the MEC International Committee page or click on the following link: Cabin Air Quality Issues.
Upcoming Local Council Meetings
--Council 33 (DEN): 10 a.m., Tuesday, June 3, Radisson Hotel Denver Stapleton Plaza, Colorado Room--Main Level, 3333 Quebec Street, Denver, Colo. (across from DENTK). The parking garage is located behind the building. Van service is available from/to DIA.
--Council 34 (SFO): 10 a.m., Tuesday, June 10, Chevy's Restaurant, 1470 Ary Lane, Dixon, Calif. (Lunch buffet will be served at 1130. Take Interstate 80 to Dixon, Calif. Take the Pitt School exit, and proceed South to Ary Lane. Turn Right onto Ary Lane. Chevy’s is on the south side next the Interstate 80 Expressway).
--Council 57 (LAX): 10 a.m., Tuesday, June 10, Proud Bird Restaurant, 11022 Aviation Blvd., Los Angeles, Calif. (Directions: The restaurant is located just south of the approach end of LAX Runway 25L. To reach the restaurant from any LAX terminal, take the “B” bus from the lower level in front of the terminal to Parking Lot B.
--Council 11 (DCA): 1 p.m. to 4 p.m., Thursday, June 26, MWAA Conference Rooms, Dulles Intl. Airport (across from Baggage Claim #1)
The United Pilots Political Action Committee, or UP-PAC, has launched a new website (www.uppac.org) where you can learn how your UP-PAC donations are being used and why it is so important for United pilots to be involved in the political process. You also can access the UP-PAC Check-Off Authorization Form at www.uppac.org.
Click Here for the UP-PAC Check-Off Authorization Form
Click Here for the ALPA-PAC Check-Off Authorization Form
The hat switch is now OFF. Anytime you are likely to be viewed by management, REMOVE YOUR HAT. In the concourse, on the jetway, wherever. Show solidarity with your fellow pilots, show management our solidarity.
If a Flight Operations manager should directly, and personally, order you to wear your hat, you should comply with that request and make note of any details of that encounter. Accordingly, while the hat switch is off, you should carry your hat with you and have it available.
We recognize that our “half wing” new hires are in a unique situation while on probation and are obviously exempt from the “Hats Off” display. When you meet a new hire on the line, welcome them to our ranks and let them know that we want them with us for the battles that lie ahead. They should continue to wear their hats.
For the rest of us, it’s now time to say “Hats Off” for our Unity.
For more on Hats Off, Click Here
“Fighting with a large army under your command is nowise different from fighting with a small one: it is merely a question of instituting signs and signals.”
—Sun Tzu
ALPA: The Pilots Union
Reuters
US Airways pilots dump ALPA, form new union
Thursday April 17, 5:39 pm ET
CHICAGO (Reuters) - Pilots at US Airways Group (NYSE:LCC - News) have voted to leave the Air Line Pilots Association (ALPA) and form a separate union, ALPA said on Thursday.
The pilots, who previously flew for the former US Airways and America West, which merged in 2005, left ALPA after some pilots became frustrated with the progress of post-merger discussions.
Of the 5,238 eligible pilot voters, 2,723 voted to form the US Airline Pilots Association and 2,254 voted to remain in ALPA. The new union must negotiate a new contract representing both pilot groups and merging seniority lists.
"We were obviously hopeful that a majority of all US Airways pilots would make a different decision," ALPA President Capt. John Prater said in a statement.
Seniority determines what planes and routes pilots fly and their path for moving up the ranks. The issue is one of the biggest difficulties in merging two airlines.
Delta Air Lines (NYSE:DAL - News) and Northwest Airlines (NYSE:NWA - News) this week announced plans to create the world's largest airline.
An earlier attempt by Delta and Northwest to reach a merger deal was disrupted by the failure of the two carriers' unionized pilots to reach a deal on seniority.
Delta and Northwest say they have reached a deal with Delta pilots that gives them the cost savings they need to proceed with a merger without a pilot integration deal and without the full support of the pilots.
Delta pilots support the merger proposal, while Northwest pilots oppose it.
United Airlines Regarding Possible Airline Industry Consolidation Involving United Airlines
April 15, 2008
CHICAGO, April 15 /PRNewswire- USNewswire/ -- The following is a
statement by the Union Coalition at United Airlines regarding possible
airline industry consolidation involving United Airlines:
"United CEO Glenn Tilton's dream of finding a dance partner for our
airline appears, by most accounts, closer to becoming a reality.
"Mr. Tilton and his executives need a reminder concerning any merger or
consolidation scenario that involves our airline. Unlike bankruptcy, when
Tilton and his minions exploited U.S. Bankruptcy laws to squeeze every
penny it could from its employees, a merger would require United executives
to address employee concerns if it is to succeed.
"Mr. Tilton can no longer hide behind the robes of a bankruptcy judge
to get what he wants from labor. Those days ended once United exited
bankruptcy. Management now faces a group empowered by unity and a common
determination of regaining what was taken from us under the guise of
duress. CEO Glenn Tilton and his executives have helped themselves to
millions of dollars of stock options, bonuses, pay raises and dividends
without any regard to their employees or passengers. Management's
self-serving approach to running this airline must end.
"We are firmly entrenched at the consolidation table. The road to any
consolidation involving United Airlines must pass through labor. And
traveling that road requires a hefty toll.
"United Airlines exists today only due to the sacrifices and sweat
equity the employees have invested, not from any heroic efforts of Glenn
Tilton and his executives.
"Today, their honeymoon is over. It is now our turn to have a say in
the future and direction of our airline. If the current management at
United expects our cooperation in any consolidation or merger action, they
must address our needs. The Union Coalition at United Airlines,
representing unionized employees, has had enough of Mr. Tilton and his
executives lining their pockets at the expense of their employees and of
management's lack of permanent interest in the company they pretend to
serve.
"Together, we will reclaim our careers and our collective future. The
road toward a successful merger or consolidation involving United Airlines
goes through its unions. Unless our concerns are met; unless we are
extended the respect we've earned and are provided the future we so richly
deserve, Mr. Tilton's merger dreams will remain just that."
The Union Coalition at United represents more than 48,900 United
employees.
Signed,
Captain Steve Wallach
Air Line Pilots Association (ALPA)
Randy Canale
International Association of Machinists & Aerospace Workers (IAM)
Don Treichler
International Brotherhood of Teamsters (IBT)
Greg Davidowitch
Association of Flight Attendants (AFA)
Craig Symons
Professional Airline Flight Control Association (PAFCA)
Lou Lucivero
International Federation of Professional & Technical Engineers (IFPTE)
United MEC
Unity Update #3
April 1, 2008
The company revealed the “2008 Employee Survey Results” last week, and the surprise? No surprise. A record number of employees participated in this year’s biennial event to tell United Airlines management the same thing employees tell them every day: they don’t trust, respect, or have any faith in the management of United Airlines.
United admits that “Employees are essential to strengthening the core airline” defined as “superior service” and “building employees’ connection and commitment to United.” Yet United continues to not make that connection and commitment to its employees. United doesn’t even realize it has a problem.
“Employee engagement remained stable 29% today vs. 30% in 2006.” That’s not stable; that’s a 1 percentage point (pp) decline! In other words, it was bad two years ago and worse this year.
“Decline driven entirely by ‘Pride in United:’ It remains highest scoring item but dropped significantly.” Duh! Average Fortune 500 company employees pride is 84%. United is a dismal 38%, down 15 pp from 2006. Put another way, 62% of United’s employees are not proud of their company, 70% are dissatisfied of their jobs, 73% are looking for new jobs, and 77% do not think United is a great place to work.
“Engagement was unchanged or slightly lower for most operating divisions.” This was a typo. Engagement was 1-8 percentage points lower in all divisions except UAX. Not one was unchanged. Flight attendants and pilots had the largest decline in company engagement. 9 out of 10 pilots have no connection with United Airlines!
So what does this all mean? The survey was called an “Employee Climate Survey.” Well, the climate is cold, frigid and cloudy. And the trend is for more of the same or worse. Their slogan was “You speak, We listen, Together we act.” In reality it is more like “You speak, We don’t care, Get used to it.” As Jake Brace stated at the recent JP Morgan aviation conference on March 17, United doesn’t run this company as an airline; it runs it as a business. The airline is just a commodity within a portfolio that United manages. That is why there are no pictures or artwork of airplanes, employees etc. in United’s World Headquarters on Chicago’s Wacker Drive. As long as the employees are treated as commodities, they will act as commodities - something this management has failed to grasp. Neglecting employees is a recipe for disaster in the service industry.
Time will tell whether United management will use the results from this survey in a positive way. If history is any indication, this survey was simply window dressing; management’s way of making the employees believe they are taking steps to address our concerns and our frustrations. The employees will be watching. Our passengers will be watching. And United’s investors, at some point, will have to take notice.
United wants to compare itself to “Fortune 500 companies whose employee experience we aspire to achieve.” If United desires the loyalty and support that employees of a Fortune 500 company typically provide, then it needs to have Fortune 500-caliber management.
The employees’ voices have been expressed loud and clear. The message they have delivered is unmistakable: United Airlines’ management is failing the very people who make the airline fly. And their message begs the question: How will Glenn Tilton and his executives respond? We’re waiting for their answer.
Leverage does not just show up, unannounced, on one’s doorstep.
Unified pilots create leverage.
UNITY OF PURPOSE BRINGS POWER
THERE IS POWER IN UNITY
“Fighting with a large army under your command is nowise different from fighting with a small one: it is merely a question of instituting signs and signals.”
Not United but interesting. (there but for the grace of god...........) ed
US Airways Pilots Prepare for Union Election
03/11/08 - 04:29 PM EDT
Ted Reed
CHARLOTTE, N.C. -- Just days before voting begins in a historic union-representatio n election, the pilot group at US Airways(LCC - Cramer's Take - Stockpickr) is in disarray.
A new union, the U.S. Airline Pilots Association, is battling to replace the Air Line Pilots Association, which has represented US Airways pilots for 57 years. From every indication, the approximately 5,300 voting members are sharply divided.
"Pilots are mad," says Jack Stephan, who was re-elected Thursday to a second two-year term as chairman of the US Airways ALPA chapter. "They're at their tipping point."
The conflict results from a questionable 2007 seniority ruling that followed the 2005 merger between US Airways, known as "the east," and America West, know as "the west." The arbitrator's ruling would force hundreds of east pilots with 15 years or more in the cockpit to become junior to west pilots employed by the company for only a few years.
The union election is scheduled for March 20 through April 17. The east has about 3,500 voting members, and the west has around 1,800. (Figures include about 800 inactive members.)
Most east pilots oppose the ruling. Most west pilots support it and will likely back ALPA, even though east ALPA leaders oppose it. To win the election, it would seem, ALPA needs votes from about 1,000 east pilots.
To support its petition to the National Mediation Board, USAPA gathered about 3,100 signatures, including most east pilots. If everyone who signs a card votes the same way, ALPA will be decertified at a major airline for the first time since 1963.
"I believe we are going to prevail, although I don't think it will be a landslide," says USAPA chairman Stephen Bradford. While US Airways' ALPA leaders "are doing the best they can, they are tied to failed national policies," he says.
Stephan expects reason, and ALPA, to triumph over emotion. "Pilots have been trained to make ice cold, calculating decisions," he says. "If an engine conks out, you first come out with a bunch of expletives. But then you remove the emotion and methodically follow the checklist. And you make a decision that may not be what your gut tells you to do, but what you feel you have to do."
Signs of conflict are everywhere. ALPA recently placed its Philadelphia local, the largest US Airways local, under a trusteeship, removing elected pilot leaders who backed USAPA. "This stinks of a putsch requiring loyalty oaths," Bradford says. "Even moderate pilots are angry that a national organization reaches in and messes with internal politics."
While the decision was made by national ALPA, Stephan says it was warranted. "As elected union representatives, we are required to defend the union in which we were elected," he says.
In Charlotte, home of the second-biggest ALPA local, pilot Bob Frear wants to remove local chairman Marshall Rogers. The reason, Frear says, is that "we are living under the worst contract of any union out there." He contends Rogers has refused to set a date for a required recall meeting. Rogers says the date is March 25. Bradford says USAPA is not involved.
Just in the past few days, most leaders of the ALPA chapters in Boston and Pittsburgh have resigned. "I have come to the conclusion that ALPA ... is broken beyond repair," Boston Chairman Richard Peters wrote in a letter to Stephan. "I cannot represent my pilots in such a poisonous atmosphere."
Meanwhile, ill feelings between west pilots and USAPA have apparently spilled over to US Airways flights, where in once case a pilot on one side reportedly denied an opposing pilot the right to fly in the cockpit jump seat. Details of the alleged incident could not be pinned down, but such breeches of protocol have been condemned from all sides.
On Wednesday, Bradford flew as first officer on an A319 on a Charlotte to Phoenix trip, and the captain extended jump seat privileges to John McIlvenna, chairman of the America West pilots. "There was courtesy all the way around. We stayed off the subject of USAPA vs. ALPA," he said. "The jump seat should not be used as a weapon."
As far as the issues are concerned, Bradford says that if USAPA takes over, it will move to date-of-hire seniority, but "fences will ensure that premerger positions are protected," he says.
If ALPA wins, Stephan says, the ruling will not be implemented because it must be part of a contract, on which pilots vote. "The only way for it to be implemented is for us to agree to it," he says.
Meanwhile, he says, one cannot overstate the advantages of a strong, established union that offers various level of personal support, lobbies extensively for pilot causes and has been a key proponent of airline safety for decades. Bradford says independent networks could provide the same benefits.
The simmering crisis will end, both leaders agree, when west pilots determine it is in their interest to make peace and gain access to lucrative international flying, most of which, including planned Beijing service, is flown by the east crew base in Philadelphia.
Even with fences, Bradford says, "in eight to 10 years, we'll [mostly] be retired," and west pilots can move up. The problem with the ruling, he says, is that "they would inherit the airline prematurely. "
__._,_
United pilots want payback
By Paul Merrion and John Pletz February 18, 2008
Leaders of the pilots union at United Airlines are signaling plans to flex their muscle in a potential merger to recover what they lostin Bankruptcy Court.
"I have impressed upon this management group that if they expect our cooperation in any consolidation scenario, it will not be a matter of if our needs are met, but when," says Steve Wallach, the new chairman of the Air Line Pilots Assn. at United, in a Feb. 8 letter to pilots.
But the price of their support promises to be high: Those needs, the letter says, include "nothing less than a complete contract that returns the United pilots to our rightful place as industry leaders."
Once among the highest-paid in their profession, United pilots took a 38% pay cut to help the company survive a three-year reorganization in Bankruptcy Court. According to the most recent salary figures available from the Massachusetts Institute of Technology's Airline Data Project, they made about $115,000 a year on average in 2006, second-lowest among mainline carriers. Top pay went to American Airlines pilots, who made about $138,000.
Getting pilots and other labor groups behind a merger is perhaps the biggest challenge facing United CEO Glenn Tilton in his quest to make United a player in a consolidating industry. The carrier is in talks with Continental Airlines Inc. and others.
Pilots have the power to snarl the delicate and complex process of combining two airlines. Mr. Wallach's missive suggests they are willing to entertain merger proposals, but it also makes clear their support would come at a high cost. Labor concessions could eat up $463 million of the estimated $1.35 billion in synergies created by a merger, estimates analyst Frank Boroch of Bear Stearns & Co. in New York.
"Having labor on board is really critical," says Michael Derchin, an analyst at FTN Midwest Securities Corp. in New York. "You've seen the delays" stemming from the recent merger of U.S. Airways Group Inc. and America West Holdings Corp., which spawned a bitter fight among pilots over seniority.
Union support also "would go a long way to getting deals approved" in Washington, Mr. Derchin notes. Union opposition, conversely, could help persuade regulators to block a deal.
Already, U.S. Rep. Dan Lipinski, D-Chicago, and others in Congress are lining up signatures on a letter to the Justice and Transportation departments, according to an aide, asking merger regulators to consider the impact on airline employees and the flying public, not just "corporate interests."
The question is how much labor can realistically expect and whether it's willing to accept equity as well as cash. Mr. Wallach's letter doesn't specify what it would take to get the pilots on board. A union spokesman declines to elaborate.
"They will try to get as much as they can without killing the deal," predicts Mr. Derchin. A part-cash, part-equity deal would be more realistic than restoring pilots' cash pay to pre-bankruptcy levels, which "would seem quite far-fetched, given that oil prices have gone up by billions since those contracts were signed."
The Chicago-based carrier extended an olive branch to its pilots union, starting the delicate dance between labor and management, as reports of merger talks with various carriers accelerated last month.
"It came out of a clear blue sky," says a pilot close to union leaders. "There wouldn't be any connection, I'm sure," he adds facetiously, referring to the merger talks.
A United spokeswoman says the timing was unrelated to rumors about a possible merger. "We've been open to talking with ALPA about how to move forward on these and many other issues for months," she says. "Of course, our unions would be a part of any consolidation discussion."
Shortly after Mr. Wallach became chairman on Jan. 1, and after the union took out a full-page newspaper ad blasting management for a spate of delays, United quietly agreed to two contractual changes sought by the pilots union since the bankruptcy proceedings. The changes assure that pilots are paid for canceled flights and that work rules for pilots of United's low-cost carrier, Ted, will be upgraded to align them with mainline pilots starting in March.
While the deal was not announced publicly, United's other unions are well aware of it, underscoring the many hands that will be outstretched if the airline pursues a merger.
"I want to be the next guy they talk to about doing something for our members," says Thomas Buffenbarger, international president of United's largest union, the International Assn. of Machinists, which represents about 17,000 ramp workers, ticket agents and other front-line employees. "If consolidation is the name of the game, we intend to make this a winner for our members."
©2008 by Crain Communications
Feb 18, 2008
To: United Pilots
From: MEC Communications
Re: Profiles of Leadership
As we celebrate Presidents� Day, we should all take a moment to reflect on what makes great leaders � not only the leaders of our nation, but those leaders who make a difference in our everyday lives.
At United Airlines, there are managers and there are leaders. Managers track absences, fuel burns, APU usage, and brake releases. They question pilots� decisions, ignore contracts, spin facts and generally do whatever it takes to put other people�s money into their own pockets. Leaders remember that our company is a service industry; that safety, service, integrity and responsibility bring back customers. Because of our responsibilities, pilots are leaders of this company. To paraphrase President Theodore Roosevelt, it is not the manager who counts. The credit belongs to the pilots who are actually in the arena, whose faces are marred by dust and sweat and blood; who strive valiantly and actually strive to do the deeds; who know great enthusiasms, the great devotions; who spend themselves in a worthy cause; and who at the best know in the end the triumph of high achievement.
United could be a great place to work given the right circumstances and incentives. The following is only one example of how leaders, not managers, make this airline run.
A Glimpse of the Friendly Skies
By Captain Loren Bohnett, A-320 SFO
On a leg home from Denver last December, we had some VIPs on board who seemed as excited to meet us as we were them. The President of The Greatest Generation Foundation, www.tggf.us, was on our flight traveling out to HNL through SFO with a number of Pearl Harbor veterans. All of these gentlemen stopped by the cockpit, crowding in, in twos and threes to take a quick look, introduce themselves, and shake our hands. Among them was an Air Corps vet who flew B17s, 24s and 29s during World War II. He was impressed by all the glass, but stated for the record that he preferred round dials; who was I to disagree? According to the TGGF President, these gentlemen hadn�t been back to Pearl since the end of the war, but they would be front and center for the festivities this year.
As pushback time approached, a flashing ACARS message got our attention; almost never good news. Our minor EDCT delay had been modified for the worse and it would be at least an hour before takeoff. The low clouds at home were backing up the system again. A little research confirmed our fears: these guys were not going to make it to Hawaii tonight as they would miss the last flight out of SFO. Would UA delay the HNL flight? Not likely. There was some hope though, if everyone could pull together and make it happen.
We sent an ACARS note to Dispatch asking them to involve the ATC Coordinator, explaining the nature of the assembly we had aboard. As the leader of that group waited in the cockpit with us, a look of concern on his face, a message came back: �How soon can you be ready?� A plan had been hatched to add a few minutes of delay to five other flights so that ours could be greatly reduced. Our new EDCT came from Dispatch along with the plea: �don�t miss it!� Everyone involved from our flight attendants, CS, and Ramp jumped into action and we made our departure slot.
Our little piece of the Friendly Skies ran like a first-rate airline that night, LCO or not. Everyone involved stepped up and did their part efficiently and with purpose. During the fast run to the west coast, as I keyed in our request for assistance at SFO, Dispatch sent us another note. Everyone was in the loop already and would be awaiting our arrival. Our gate assignment put us directly across from the HNL flight and CS would be there to serve as escort, we were told. After my flying partner greased our jet onto 28L, we arrived at the gate to find everything in place. A smiling CS supervisor was in fact waiting in the jetway holding a stack of boarding passes.
The best part of this story is still to come. It turns out that back in Denver, one of United�s Global Services customers overheard the travel plans and the importance of the trip our veterans were on. This anonymous person got involved and stepped up as well. Those boarding passes awaiting our arrival were all First-Class upgrades, paid for by this customer.
Many take for granted the incredibly complex task of providing safe transit that pilots perform day and night, flight after flight. From my perspective, as Flight Officers we played the usual leadership role, which is critical to safety as well as to the customer experience. What was special this night was that our extra efforts were well-received early on, which led to effective coordination and a better solution. Employees across the system were eager to help, motivated by the desire to honor this deserving group of veterans.
For me this was a glimpse of what our airline could be like every day for every passenger. We have the equipment, the facilities, and, most importantly, the people to provide this level of service and attention on every flight. Unfortunately, such a renewal of enthusiasm across this company would require a level of genuine appreciation, motivation and leadership from the top that is sorely lacking today. My hope is that we do experience this renewal, and sooner rather than later. For a couple of hours, this was a great place to work.
Jan 12, 2008
Editor,
I would like to bring to attention that the ALPA Web page on legislative issues has Pension Reform at the top and again asks people to write in support of pending legislation. The measures would make age 60 the normal retirement age for those of us that were forced out at 60 and hence get rid of the early retirement penalty. Since active pilots can now go to 65 and collect a full PBGC pension, it only makes sense that they change the penalty on already retired pilots. I hope all retirees will write and ALPA continues to support....$$ for the change.
John Myer
UAL Retired
Sent: Friday, December 28, 2007 8:00 P
Subject: MEC Legislative Update
UAL-MEC Legislative Committee Update
December 28, 2007
Dear Fellow Pilot:
There are several items in the legislative area that need to be brought to your attention. One is a response to a question, two are updates on current legislative efforts, and one is a request from your Committee.
ALPA Input to Age 60 Legislation
There are some who have asked what ALPA has done to make the transition to the new retirement age better for the pilot group. While this issue has been discussed in several venues over the long road to the age change, I want to point out one important part of the process that would not have occurred if the original age change legislation (H.R. 1125 and S. 65) had become law without the ALPA sponsored “Oberstar†language. Simply put, every one of the many contractual changes required to comply with the new retirement age would have been implemented without pilot input or negotiations. The Company would have been free to make whatever changes they felt necessary to comply with the new law without any consultation with your elected representatives. This potential for abuse was averted by ALPA through the insertion of the requirement that each company must utilize the established structure (i.e., the Negotiating Committee and MEC) to make any changes resulting from the age change. If you are of the opinion that there are not many issues, think about the following: Age 59 by-pass bids, long term disability, loss of license insurance, medical insurance premiums and scheduling restrictions only to name a few. This is just a short list of some of the areas which are affected. Did you really want to give the Company the authority to make arbitrary changes to every item that now requires discussion?
The Akaka/Miller legislation (S 1270 and HR 2103)
These bills are very much alive. There is a perception out there that this legislation would only affect those pilots who retired at age 60 prior to December 13, 2007. ALPA Governmental Affairs interpretation of this legislation is that it would apply to ALL pilots whose pensions were terminated and turned over to the PBGC. This has NOT changed due to the retirement age change to 65. If this legislation is passed and signed into law, each affected pilot would be entitled to the full PBGC benefit upon retirement after age 60 even though he or she now has the option to continue flying to 65. Each of us paid for the lost retirement benefit and we should be able to retire at any point after age 60 with the full PBGC benefit that we are entitled to.
Due to your participation, there were almost 800 contacts made with Congressional Representatives via the Legislative Alert “CAPWIZ†program in November. This was up from about 60 in October. The vast majority of the increase came from zip codes around United pilot domiciles. Your support of these efforts helps in several ways and is appreciated.
The “Lost Retirement Savings act of 2007†(S. 2505 and H.R. 4061);
Sen. Maria Cantwell (D-Wash.) introduced the Senate version of this legislation just before the holiday recess. There are links in place in the “members only†section of the www.alpa.org website that will provide you with additional information. Look under “Legislation and Politics,†then “Pilot Related Legislation.†There will be a legislative alert program rolled out after the first of the year along with continued activity in Washington by members of your MEC Legislative Committee. We will continue to work with ALPA Government Affairs as well as the Delta MEC Legislative Committee to secure passage of this legislation in a timely fashion. As a reminder, this legislation would give pilots the option of rolling previously taxed proceeds of the stock claim sale and bond distribution into a Roth or traditional IRA.
UPPAC and ALPAPAC
It is extremely important to have all available tools when working to achieve legislative gains for our pilot group and profession. The most important assets we have are elected representatives who are willing to consider our position on issues of importance to us. UPPAC and ALPAPAC give us a means to support the campaigns of candidates who are willing to listen to the pilot point of view. There is never any guarantee that every vote will be in line with our desires, but if the door is open to the ALPA/Pilot perspective, we then have the opportunity to make our case. You can be sure that those who may oppose the pilot perspective will use whatever recourses they have to influence the debate. We simply must have all available tools to present our perspective. To this end, I request that every pilot seriously consider signing up for both UPPAC and ALPAPAC dues check-off. We need to be engaged in this arena. If you already participate, we thank you urge to you please consider any increase you can afford.
Regarding the retirement age issue, there have been some who decided to limit their support of UPPAC and/or ALPAPAC because of a feeling that the PAC funds were being used in a way that was detrimental to that individual’s personal position concerning the age change. I request that each pilot who feels this way and has decided to not support UPPAC and ALPAPAC reevaluate the current situation. The age change has now become law. The choice we all face now is whether to hold a grudge against our fellow pilots or our union, or move on, reunite and prepare for the many upcoming battles. I suggest that we need to work to become unified. We are a diverse group and will probably never agree on every issue. Lively debate is healthy and essential for any democratic organization and should be encouraged within our union. Even if we occasionally “agree to disagree†on a specific issue, I believe that we are unified in the desire to improve the airline piloting profession. There are others, outside of our group, who see any perceived lack of unity as an opportunity to diminish our profession. They are the opposition; your fellow pilot is not.
Fraternally,
Captain Jeff Greco
Chairman
UAL-MEC Legislative Committee
Pilots of Council 12:
The following press release was sent out this past evening from the White House Press Office:
Thursday December 13, 9:33 pm ET
WASHINGTON--(BUSINESS WIRE)--On Thursday, December 13, 2007, the President signed into law: H.R. 4343, the “Fair Treatment for Experienced Pilots Act,” which raises the mandatory retirement age from 60 years to 65 years for pilots serving on commercial passenger flights within the United States.
Here is the full text of H.R. 4343:
An Act
To amend title 49, United States Code, to modify age standards for pilots engaged in commercial aviation operations.
· Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
· This Act may be cited as the `Fair Treatment for Experienced Pilots Act'.
SEC. 2. AGE STANDARDS FOR PILOTS.
· (a) In General- Chapter 447 of title 49, United States Code, is amended by adding at the end the following:
`Sec. 44729. Age standards for pilots
· `(a) In General- Subject to the limitation in subsection (c), a pilot may serve in multicrew covered operations until attaining 65 years of age.
· `(b) Covered Operations Defined- In this section, the term `covered operations' means operations under part 121 of title 14, Code of Federal Regulations.
· `(c) Limitation for International Flights-
·
o `(1) APPLICABILITY OF ICAO STANDARD- A pilot who has attained 60 years of age may serve as pilot-in-command in covered operations between the United States and another country only if there is another pilot in the flight deck crew who has not yet attained 60 years of age.
·
o `(2) SUNSET OF LIMITATION- Paragraph (1) shall cease to be effective on such date as the Convention on International Civil Aviation provides that a pilot who has attained 60 years of age may serve as pilot-in-command in international commercial operations without regard to whether there is another pilot in the flight deck crew who has not attained age 60.
· `(d) Sunset of Age 60 Retirement Rule- On and after the date of enactment of this section, section 121.383(c) of title 14, Code of Federal Regulations, shall cease to be effective.
· `(e) Applicability-
o `(1) NONRETROACTIVITY- No person who has attained 60 years of age before the date of enactment of this section may serve as a pilot for an air carrier engaged in covered operations unless--
o
§ `(A) such person is in the employment of that air carrier in such operations on such date of enactment as a required flight deck crew member; or
o
§ `(B) such person is newly hired by an air carrier as a pilot on or after such date of enactment without credit for prior seniority or prior longevity for benefits or other terms related to length of service prior to the date of rehire under any labor agreement or employment policies of the air carrier.
·
o `(2) PROTECTION FOR COMPLIANCE- An action taken in conformance with this section, taken in conformance with a regulation issued to carry out this section, or taken prior to the date of enactment of this section in conformance with section 121.383(c) of title 14, Code of Federal Regulations (as in effect before such date of enactment), may not serve as a basis for liability or relief in a proceeding, brought under any employment law or regulation, before any court or agency of the United States or of any State or locality.
· `(f) Amendments to Labor Agreements and Benefit Plans- Any amendment to a labor agreement or benefit plan of an air carrier that is required to conform with the requirements of this section or a regulation issued to carry out this section, and is applicable to pilots represented for collective bargaining, shall be made by agreement of the air carrier and the designated bargaining representative of the pilots of the air carrier.
· `(g) Medical Standards and Records-
·
o `(1) MEDICAL EXAMINATIONS AND STANDARDS- Except as provided by paragraph (2), a person serving as a pilot for an air carrier engaged in covered operations shall not be subject to different medical standards, or different, greater, or more frequent medical examinations, on account of age unless the Secretary determines (based on data received or studies published after the date of enactment of this section) that different medical standards, or different, greater, or more frequent medical examinations, are needed to ensure an adequate level of safety in flight.
·
o `(2) DURATION OF FIRST-CLASS MEDICAL CERTIFICATE- No person who has attained 60 years of age may serve as a pilot of an air carrier engaged in covered operations unless the person has a first-class medical certificate. Such a certificate shall expire on the last day of the 6-month period following the date of examination shown on the certificate.
· `(h) Safety-
·
o `(1) TRAINING- Each air carrier engaged in covered operations shall continue to use pilot training and qualification programs approved by the Federal Aviation Administration, with specific emphasis on initial and recurrent training and qualification of pilots who have attained 60 years of age, to ensure continued acceptable levels of pilot skill and judgment.
·
o `(2) LINE EVALUATIONS- Not later than 6 months after the date of enactment of this section, and every 6 months thereafter, an air carrier engaged in covered operations shall evaluate the performance of each pilot of the air carrier who has attained 60 years of age through a line check of such pilot. Notwithstanding the preceding sentence, an air carrier shall not be required to conduct for a 6-month period a line check under this paragraph of a pilot serving as second-in-command if the pilot has undergone a regularly scheduled simulator evaluation during that period.
·
o `(3) GAO REPORT- Not later than 24 months after the date of enactment of this section, the Comptroller General shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report concerning the effect, if any, on aviation safety of the modification to pilot age standards made by subsection (a).'.
· (b) Clerical Amendment- The analysis for chapter 447 of title 49, United States Code, is amended by adding at the end the following:
·
o `44729. Age standards for pilots.'.
Clearly, this Act is going to cause wide-ranging discussions amongst the pilot group at our airline and especially in a large domicile such as Council 12, which contains some of the oldest and youngest pilots at UAL. However, we must maintain an even keel at all times, with safety uppermost in our minds. As with other contentious issues we have faced over the last few years, this is a subject that may be best left alone and is certainly best level to straight and level flight at altitude if it is to be fodder for cockpit conversation.
That said, let us all understand where we are and from whence we came on this issue:
Almost two years ago, ICAO indicated that it was changing the world standard for pilot retirement age from 60 to 65 years of age. Over a year ago, they did that exact thing. A month before they made the change permanent, ALPA elected a new President who had said that he was personally in favor of the change, but that we needed to move slowly on the issue so that all pilots were educated on the issues. He set up a Blue Ribbon Panel and the FAA Administrator, after giving a speech in late January of this year, set up an Aviation Rulemaking Committee (ARC) composed of people from within the industry and aviation community, and with differing perspectives on the issue.
It appeared that the FAA had moved off its position of Age 60 in light of the ICAO decision and, possibly, the tacit agreement of the President of the Association. The issue was clearly contentious at all airlines and all levels of all airlines. It was also clear that ALPA’s decision-making ability on the issue was quite limited, to the point of exclusion, unless we were “inside the tent” to provide serious input.
In April 2007, the Executive Council decided that ALPA’s position should change and that we should embrace the change to Age 65 in order to be able to influence the language that was going to determine its mark up in Congress. ALPA was successful in that endeavor and was able to ensure there was no retroactivity (no return with seniority) and no increase in medical standards, pending further study.
Regardless of the perceived minor successes in influencing the legislation, some pilots feel betrayed by their union’s willingness to change it long-standing (since 1980) position on Age 60, specially given the up or down “vote” many felt had been cast in favor of the status quo. Some people felt ALPA had chosen to rely solely on data from a question that was quite leading in the direction of Age 65 in making their decision. In fairness, the issue was not black or white, yea or nay, but rather, (and I am paraphrasing) “what do you want us to do if the proposed changes are being made: attempt to influence the legislation or maintain our status quo position and not be included in the discussions?” That particular “grey area” was a minefield for the Association, as that was EXACTLY the position in which we were being placed. On that specific question, the majority of ALPA pilots wanted some influence on the proceedings, even though the majority of UAL pilots wanted the status quo.
So, December 13th, 2007 appears to be the day the normal retirement age for Part 121 pilots in the United States changed from 60 to 65. However, most pilots expected this day to come, perhaps not so quickly, but it is now here and we must deal with it rationally and professionally. We must not let ourselves be distracted from the most important issue we face as a United Pilot Group, which is restoration of our contract, to include significant changes in our pay, benefits and working conditions.
Based on the near term stagnation this legislation will present, and the massive savings in training and hiring costs the company will gain, we must ensure that we receive our due. What that entails is to be determined, but we must not waste this opportunity to address issues of importance to us all. I will leave further discussion of that particular issue to the MEC Officers, but it is something we must each contemplate, as we seek to form a unified vision of what we seek for the future.
Please look for further communications from your Officers on this and other important issues in the very near future. For now, though,
SAFETY, IN ALL THINGS, AT ALL TIMES.
Fraternally,
Captain Neil Swindells
Chairman, Council 12
Union Coalition at United Airlines Press Release
Union Coalition at United Airlines Demands Repayment with Airline’s 'Found Money'
Chicago, Ill., November 27, 2007--The Union Coalition at United Airlines issued the following statement in response to an announcement by United concerning restructuring current credit agreements in hopes of pursuing “shareholder-oriented initiatives:”
“While searching for ways to pay down $350 million in debt and implementing an additional $500 million in ‘shareholder initiatives,’ United’s management has once again turned a blind eye toward its employees, the very people who saved this airline from extinction.
“The Union Coalition at United Airlines, representing the overwhelming majority of union-represented employees, is absolutely opposed to any transaction United may contemplate that is to the detriment of its workers. Employees have sacrificed billions of dollars in wages, pensions and degraded work rules as a result of United’s 39 month bankruptcy. Since emerging from bankruptcy, United has cut its total debt by billions while ignoring its employees. Should United Airlines undertake any transaction, employees must share in the gain from that process.
“Not a penny of the billions of dollars extracted from United’s employees during the airline’s bankruptcy has been repaid. Yet, management sees fit to reward shareholders with new initiatives without giving a passing thought of recognizing those who have sacrificed the most to return this airline to economic health.
“The Union Coalition at United Airlines is adamant that any undertaking by management earmarked toward rewarding shareholders must first recognize and compensate its employees. There is only one choice to make regarding use of the $500 million in ‘found money.’ Any gain from the ‘credit restructuring’ must be shared with the employees.
For management not to include employees in these new initiatives and the newfound value of an asset spin off is just another insult to every United employee.
“No corporation with even a scintilla of soul or heart would ignore the catastrophic impact bankruptcy has on employees while focusing solely on shareholders, many of whom were mere bystanders as United savaged its employee contracts and eliminated tens of thousands of jobs. The time has long passed for United’s employees – a major stakeholder in United’s operation -- to stop being treated as hired hands. We will pursue every opportunity to protect affected employees and secure our rightful share of rewards.”
Combined, the coalition’s five labor unions represent more than 30,000 United employees.
United MEC Officers-Elect
Transition Update #6
November 7, 2007
THE REAL EARNINGS REPORT
“This morning, we are announcing our third quarter earnings, which are among the best in the industry across nearly every financial metric: profit, margin, cash flow and revenue... Our operating profit, excluding special items, was $589 million, up 93 percent from a year ago, for an operating margin of 10.7 percent, 5 points ahead of the margin we achieved last year…
"We delivered these results by driving fundamental improvements in our core business, both financially and operationally."
Glenn Tilton, October 23, 2007 in announcing UAL Corporation's 3rd quarter earnings
While this is great news for shareholders and of course, our senior management group, it is nothing but disturbing news to the employees and especially the pilots. If you recall, during bankruptcy, our portion of the $2.56 Billion dollar annual labor cost savings demanded by management amounted to $1.1 Billion. Yes - - that’s $1.1 BILLION DOLLARS each and every year from 2003-2010. If one factors in these cost reductions to the present earnings parade you’ll see a dramatically different “earnings” story.
Remember what the pilots were forced to disgorge from their collective bargaining agreements during the bankruptcy process:
Pilots’ C2003 wage, benefit and work rule changes $ 1.1 Billion per year
Pilot’s contribution from A plan discontinuation $ 500 Million (2007)
Pilots’ C2005 average annual Savings from the Bankruptcy Exit $ 180 Million per year
Pilot Total $ 1.78 Billion for year 2007
or looked at from a different perspective
pilot contribution to quarterly earnings $ 445 Million
And let’s not forget the other labor groups’ contributions to these “earnings,, an additional $1.46 Billion per year or $365 Million per quarter.
Total quarterly labor contribution to earnings $ 810 Million
Let’s re-calculate UAL’s earnings taking into account the savings from our bankruptcy contracts:
Third Quarter
UAL Q3 Operating “earnings” $ 589 Million
Pilots’ C2003 wage, benefit reductions $ (275 Million)
A plan reduction $ (125 Million)
Pilots’ C2005 Bankruptcy Exit wage reduction $ ( 45 Million)
Other labor groups’ wage and benefit reductions $ (365 Million)
You do the math!
The next time Glenn Tilton or any other senior manager crows about UAL’s “earnings," realize that it has nothing to do with how they “...[drove] fundamental improvements in [their] core business, both financially and operationally." It has nothing to do with them managing their most key asset – the employees. Rather, it has everything to do with their ability to mine one asset and one asset only, your pocketbook! Without the draconian concessions wrought during bankruptcy, this management group has absolutely no idea how to run an airline.
Wall Street knows these people are not long term planners nor are they airline managers. They are nothing more than portfolio managers. Glenn admitted as much during the 3rd quarter analysts call, when he said: “We are identifying how to unlock the value associated with the portfolio of businesses such as Mileage Plus and our maintenance division." So we have to ask this latest group of carpet baggers, when did we stop being an airline and become, as one industry analyst put it “…a conglomerate of portfolio assets just ripe for the picking?” Is this why management wants to sell the maintenance center? Is this why management wants to spin-off and eventually sell the Mileage Plus program? Is this why management is looking for a dance partner? Maybe, this is why management has no interest in “managing” the airline?
Never forget that it is the employees who have suffered the most under this management group. Never forget that it is the employees who have toiled and continue to toil under draconian bankruptcy contracts. Never forget that it is the employees who are paying for the company’s earnings and management’s obscene bonuses. Never forget that it is the employees who are the true asset of this company.
And most importantly, NEVER FORGET that if any of the assets are picked, THE EMPLOYEES WILL DEMAND THEIR SHARE.
Leverage does not just show up, unannounced, on one’s doorstep. Unified pilots create leverage.
UNITY OF PURPOSE BRINGS POWER
THERE IS POWER IN UNITY
------------------------------
October 11, 2007
Note: To access most links contained in this Update, you must be logged onto the MEC website (www.alpa.org/ ual)
The MEC concluded its regularly scheduled meeting this week in downtown Chicago. This morning, in open session the MEC unanimously passed the following resolutions:
WHEREAS, numerous press reports have stated that United is considering partial spin-offs of Mileage Plus or the MOC, and
WHEREAS, assets integral to the value of United, if they are partially spun-off, should not be used to only enhance shareholder value but should be used to recognize the sacrifice and investment of the employees as well,
THEREFORE BE IT RESOLVED, that the UAL-MEC is adamantly opposed to any partial asset spin-off that does not have a component of return to the employees, and
BE IT FURTHER RESOLVED, that the Master Chairman is directed to use all available resources to aggressively pursue inclusion of the employees in any return derived from partial asset spin-off, and
BE IT FURTHER RESOLVED, that the Master Chairman is directed to aggressively pursue the amendment of ERISA section 4047, or other actions directly with the PBGC, so that the PBGC would be compelled to seek restoration of pension plans and fund them through the partial or complete asset sales of Mileage Plus or the MOC, or other similar transactions.
Also:
BE IT RESOLVED the UAL-MEC will enforce the MEC policy pertaining to Article VIII charges against those individual members that ignore, or purposely violate, ALPA policies or Officer directions with respect to interaction with UAL management.
The MEC adjourned at 10:30 this morning.
The Pilot to Pilot Program arrives in San Francisco next week on October 17th. Look for Pilot to Pilot volunteers in the San Francisco Flight Operations area and feel free to ask for current information on the activities of your union.
The MEC Strike Preparedness Committee announces:
An Informational Picketing Event
ONT Ontario International Airport
Los Angeles pilots and flight attendants have scheduled an informational picket event at Ontario Airport
THURSDAY -- October 18, 2007 @ 0930 AM
0930 - 1000 Meet & Brief in the Parking Lot across from the United Terminal
(West End of Terminal 2)
1000 -1200 Informational Picketing/Leafletin g in front of Terminal 2
1200 -1215 Police the area and terminate activities
Please let Capt. George Bowling know you'll attend via email at
picketont@alpa. org
(include your name and mobile phone number)
All Employees, Flight Attendants, Family and friends are encouraged to attend.
The uniform will be short sleeve shirts (no jackets) with hats.
The pilots of Kansas City have scheduled an Informational Picketing event at the Kansas City International Airport (MCI) on Monday, October 15, 2007. Let’s show our unity in KC! Please make an effort to attend.
Contact Rob Ravencamp by cell phone at (816) 686-8126 or via email at robbiev3@comcast. net if you plan to attend. Please include your name, cell phone number, and any questions you might have.
Schedule of events:
0715 – 0730 Meet at Starbucks across from UAL gates (Complimentary coffee provided).
0730 – 0750 Informational picketing briefing in Terminal A parking garage.
0800 – 1100 Informational picketing at MCI Terminal A
1130 – 1300 Lunch at Zona Rosa (152 hwy and I-29). Complimentary beverages will be available.
Family and friends are encouraged to attend. Informational leaflets will be distributed to the general public.
Uniform will be short sleeved shirts, jackets and hats. We will leave our jackets at the picketing briefing if weather permits. Please be in uniform while picketing. Parking is at your discretion. Either use employee parking or Terminal A short-term parking garage.
If you have any questions, please contact Rob Ravencamp at (816) 686-8126 robbiev3@comcast. net or Chuck Newton at (816) 668-7278 figav8r@aol. com.
************ ********* ********* ********* ********* ********* ********* ***
At the October meeting of the United MEC yesterday Retirement and Insurance Committee Chairman Marty Torres briefed the MEC on the first week’s activity concerning the new PDAP “AutoPilot†Funds. Captain Torres reported that $15.9 million flowed into these new funds in the first week and he stated that number is expected to grow significantly. The committee is targeting a March 1, 2008 date for closing the “balanced funds†and will communicate this information to the pilot group so that funds may be moved voluntarily prior to that date.
Central Air Safety Committee Chairman Captain Mary McMillan gave her final report to the MEC as CASC Chairman as she has assumed an ALPA National Safety Committee position. Captain Mc Millan thanked the MEC for its support of the CASC and reported that the committee is working toward a comprehensive fatigue mitigation policy with UAL management. The MEC thanked Captain Mc Millan for her service to the United pilots and wished her well in her ALPA National work on environmental issues.
Captain Mary Mc Millan, Chairman
Central Air Safety Committee
EAP Chairman Hal Schichtel gave his final report to the MEC on the work of his committee which is totally confidential but has produced very positive results for many pilots over the years of his service. Mr. Schichtel reported that there has never been a greater need for the EAP program as there is right now due to the stresses of the company’s bankruptcy and it’s related effects on our careers and families and urged the MEC’s continuing support. The MEC passed a unanimous resolution of gratitude for Hal Schichtel’s selfless work for the pilots of United Airlines and wished he and his wife the very best in his upcoming retirement.
Hal and Lori Schichtel
FOQA/ASAP Committee Captain Jim Smith reported on the restructuring of the Event Review Committee as a result of movement of his committee members. The committee is now up to full strength and working on updating the MOU (Memoradum of Understanding) governing the activities of the ERC.
System Schedule Committee Chairman Captain Jeff Nooger thanked the MEC for their support after more than 8 years of service. Captain Nooger stated that he has always attempted to seek and mentor the greatest talent for his committee and thanked his committee for their tireless service to their fellow pilots. Captain Nooger reported on recent pairing construction and vacancy bids and the company’s winter flying schedule. Captain Nooger reported the final statistics on the recall of furloughed pilots:
Captain Nooger also reported that the first new hire class was comprised of 19 pilots and the next new hire class which began on October 8th contains another 20 pilots. New hire classes are now planned for at least the next five weeks.
The MEC then began debate and action on over 30 agenda items.
One of the agenda items passed this morning included the following:
BE IT RESOLVED the MEC directs that the UAL-MEC Policy Manual be revised to include wording specifying that, although allowed in the Collective Bargaining Agreement, the UAL-MEC does not endorse the use of JRM/SRM as a manpower planning tool.
This agenda item was approved unanimously and final language was directed to be written for inclusion in the MEC Policy Manual at the January, 2008 MEC meeting.
Tuesday, during the regular meeting of the UAL-MEC, the members of the MEC unanimously elected 747-400 Captain Steve Wallach as MEC Chairman and ALPA Member of the UAL Board of Directors. The MEC also unanimously elected A-320 Captain Jeffrey Barath as MEC Vice-Chairman and A-320 Captain Joseph Genovese as MEC Secretary Treasurer.
The following pilots were elected to MEC Committee positions:
Ana Vegega – Chairman, Central Air Safety Committee
Bill Norteman- Member, Domestic Code Share Committee
Craig Korsgard – Chairman, EAP Committee
Jon Dudley – Vice-Chairman, EAP Committee
Tami Halloran – Member, EAP Committee
Jerry Schoofs – Chairman, Grievance Committee
Todd Insler – Vice-Chairman, Grievance Committee
Mark Wurtz – Member, Grievance Committee
Drew Wacker – Member, Grievance Review Panel
Steve Rothstein- Member, Grievance Review Panel
Brian Finley – Member, Grievance Review Panel
Dick Kane- Alternate Member, Grievance Review Panel
James Belton- Alternate Member, Grievance Review Panel
John Briggs- Chairman, Hotel Committee
Pete Pellegrino- Vice Chairman, Hotel Committee
Rick Cauich – Member, Hotel Committee
Mike Biesecker- Member, Hotel Committee
Jim Cowen – Member, Hotel Committee
Ray Stratton –Chairman, International Committee
Carolyn Pasqualino – Member, International Committee
Herb Hunter- Chairman, International Code Share Committee
Ron Abel- Member, International Code Share Committee
Bob Spadea – Chairman, Jumpseat Committee
Garry Kravit- Member, Jumpseat Committee
Jeff Greco- Chairman, Legislative Committee
Carlos Rodriguez- Member, Legislative Committee
Jim Mc Clellan – Member, Legislative Committee
Glen Gulliver- Chairman, Membership Committee
Jeff Cramer – Member, Membership Committee
Scott Batzel- Member, Membership Committee
David Smith- Chairman, Merger Committee
Garth Thompson-Member, Merger Committee
Jeff Ruark- Alternate Member, Merger Committee
Mindy Sanderson – Chairman, Parental Issues Committee
Judy Lee- Chairman, Professional Standards Committee
Kathi Hurst- Vice-Chairman, Professional Standards Committee
Ed Folsom- Chairman, Security Committee
Jeff Nooger, Chairman, System Schedule Committee
Heather Loomis- Chairman, Training Committee
Chuck Hogeman- Member, Training Committee
Steve Knopf- Member, Training Committee
Ron Maty- Member, Training Committee
Ken Redmond- Member, Training Committee
Doug Trotter- Member, Training Committee
Richard John- Member, Training Committee
Chris Bruce- Chairman, Uniform Committee
Kent Moffer-Vice- Chairman, Uniform Committee
The October MEC meeting was opened by Chairman Captain Mark Bathurst at 9:00 am at the W Hotel in downtown Chicago. Captain Bathurst reviewed the MEC election process which will take place after lunch tomorrow and the strict guidelines we must follow dictated by ALPA policy and Federal labor law. All MEC Officer positions, the ALPA Member of the Board of Directors and most MEC Committee positions are open for election.
Captain Bathurst reported on a number of national issues including the FAA reauthorization bill, the situation at US Airways and the organizing effort at SkyWest. Captain Bathurst encouraged all United pilots to actively engage the Sky West pilots at every opportunity on the benefits of ALPA membership.
Captain Bathurst recognized the contributions of Captains Wendy Morse, MEC Vice Chairman and Mike Hamilton, MEC Secretary/Treasurer . Commenting on the past four years, one of the significant events in our pilots’ lives was the June 2004 ATSB loan guarantee denial. That started the second round of bankruptcy negotiations, required by the bankruptcy court as necessary for exit. Without a doubt the last four years have been difficult in a way no one could forecast. The company exited bankruptcy on February 1st, 2006. Needless to say, there has been tremendous strain on all employees. Last year we re-activated the labor coalition. Important lines of communications have been established and he urged the new leadership to continue working with the coalition.
In closing Captain Bathurst stated, “Four years ago I stood before this body and talked about most of the same things I’m sure we’ll hear tomorrow:
Unity, common sense of purpose, common sense of direction, and high ethical standards so that our members can have faith in their union. An election is always a matter of choice, of decision, of belief. In the coming years, the world won’t be the same as we think we know it now. We’re all here for the same reason, the right reason: to provide the best representation for our pilots!.â€
“Recent contractual achievements on other properties sets the stage for others, including United. We can now leverage achievements rather than fight the sacrifices. Not only are we talking about our own ALPA unions, but we have a great opportunity to talk to the pilots of other pilot unions. Organizing is important for us to be THE pilots union. We are much stronger as we go out and talk to new pilot groups. “
At the end of his remarks, Captain Bathurst recognized ALPA National Communications Director Don Skiados for his many years of service to all ALPA pilots and, on behalf of the MEC and all United pilots, presented him with honorary gold and silver “battle star†ALPA pins.
ALPA Director of Communications Don Skiados (L) with
Captain Mark Bathurst, Chairman, UAL-MEC
MEC Vice Chairman Captain Wendy Morse presented her report which highlighted recent meetings with new System Chief Pilot Keith Rimer who she characterized as “firm, but fair.â€
MEC Secretary Treasurer Captain Mike Hamilton highlighted the financial condition of the Association and the MEC, and presented a number of ideas on how the United MEC could possibly save money in the future by cutting back on special meetings and closely monitoring flight pay loss.
ALPA Executive Vice President Captain Mark Seal reported on recent meetings concerning the US Airways merger situation. The situation is still fluid and there are a number of upcoming meetings which could materially affect the outcome of this contentious situation. After much debate, the Executive Council accepted the Nicolou decision and therefore, is bound to defend it. Captain Seal closed by also asking all of us to reach out to the Sky West pilots. Sky West management is trying very hard to keep them from receiving information and it behooves us all to provide the best information we can about the benefits of ALPA membership.
Representing Captain Jay Santiago, Chairman of the Professional Standards Committee was Chicago Captain Kathi Hurst, member of the Council 12 Professional Standards Committee. Captain Hurst reported that activity of the Professional Standards Committee had increased three fold over the past two years. The stresses of bankruptcy and fatigue have caused more interpersonal problems. The committee does all of its work under the cloak of confidentiality so our story is not widely known but there are a lot of good results from our work. The committee is always looking for more volunteers.
Following the lunch break Captain Jerry Schoofs reported on the status of a number of MEC grievances and settlements. Captain Schoofs was especially pleased to report the recent System Board award of $1.1 million to the United MEC for the value of benefits withheld by the company when determining flight pay loss. “This was a significant award and underscores the value of a strong grievance system,†Captain Schoofs stated in his remarks. He reported that the Grievance Committee has 25 System Board days on the schedule with numerous grievances to hear.
The committee is also working on getting a telephone “hotline†set up for contract questions. A number of volunteers are being trained and the project is nearing readiness.
July 2, 2007
Mr. Glenn Tilton
Chairman, President and Chief Executive Officer
United Airlines, Inc.
77 West Wacker Drive
Chicago , Illinois 60601
Dear Glenn :
At the June 13, 2007 Merrill Lynch Global Transportation Conference, United’s Chief Financial Officer Jake Brace announced that United management will propose paying several hundred million dollars to United shareholders at the end of this year. Mr. Brace repeated this pledge in last week’s interview with the Wall Street Journal. While you’ve mentioned the possibility of shareholder payments in the past, the Company’s aggressive media posturing indicates that you are ready to proceed down this road.
I am highly alarmed that you would propose to make a massive shareholder payoff in light of the problems I have previously cited, and reiterate in this letter. On behalf of all United pilots, I strongly urge you to reconsider this ill-advised course of action.
United is only 18 months removed from a cataclysmic bankruptcy. We are a highly leveraged company in a cyclical industry entering a difficult domestic revenue environment. Our corporate credit rating remains at B/B- (junk grade or worse). We are being outperformed by American, Continental, Delta and others by most financial measures. We contemplate giving away United flying to carriers such as Aloha. We operate on a bare bones non-aircraft capital expenditure budget after years of deferred spending. We are the only major airline without a fleet modernization plan. We rank poorly in customer satisfaction surveys. Our on-time performance is mediocre at best.
At the same time, based on my many conversations with my fellow union leaders, employee dissatisfaction with the current management team has reached its highest point – ever – and it continues to grow. Since my letter of May 29, 2007, hundreds of United pilots and other employees have expressed their anger and frustration with your failure to deliver on the promises of shared sacrifice, shared reward and management accountability. Your decision to reject out of hand my suggestion to move up contract negotiations has not helped. Your employees are disengaged, Glenn . They are desperate for a vision of the future and a leader who they can respect and follow. It is my belief that they increasingly do not enjoy working for United and they see little hope for improvement.
Under these circumstances, it is inconceivable that you would propose a massive shareholder payment. I believe the message this action will send to your employees is: you don’t care about employee engagement, alignment and morale enough to spend any money to improve our workplace; you aren’t interested in investing in the future of the airline; you can’t compete with our mainline peers; and finally you think it’s the “right thing to do” to pay off shareholders using the financial sacrifices of your employees.
United’s employees will regard this as another hard slap in the face. Did we really sacrifice our wages, our quality of life and our pensions so you could pay shareholders before investing in the employees, the airline and its future? Are the overlapping three circles of Employees, Customers and Investors you mention so frequently still equal in size? It seems they are not.
If you’re truly interested in building long-term value for United’s employees, customers and shareholders, there are obvious and much better uses of the Company’s cash:
· Invest in your employees. You can still fix this airline. There is no reason why United shouldn’t outperform every one of it peers. We have the strongest asset base, a great global network, the lowest unionized labor costs and the most loyal customers. But you will not succeed without the support – the enthusiastic support – of United’s more than 55,000 employees. Now is the time to make a meaningful investment in your employees by improving wages and working conditions and pledging to move up contract negotiations, as Continental and their pilots today jointly announced. If it’s the right thing for Continental to do, it’s the right things for United to do. An investment in your employees will “cost” the airline far less than a massive shareholder payment, and no other use of the Company’s cash could possibly pay higher dividends to United and its shareholders.
· Pay down debt. Despite bankruptcy, we remain among the most highly leveraged airlines in the world. The critical measure of our debt burden is the ratio of our net debt (including capitalized leases and cash reserves) to the reported cash we generate from operations (EBITDAR). By this measure we are far more leveraged than our network competitors, including those who did not benefit from resorting to Chapter 11, as shown in the graph to the (left). Things change quickly in the airline industry, and we need a much stronger balance sheet to weather the next inevitable downturn. We also need to be poised to grow the airline where and when we should. No management committed to the long-term health of United would consider returning cash to shareholders until substantially strengthening the balance sheet.
· Invest in the airline. Our annual budget for non-aircraft capital expenditures is less than 50% of what we need to modernize United after years of deferring critical capital projects. Through the 1990s, we regularly spent well over $1 billion each year on non-aircraft projects. The amount allocated to non-aircraft projects in the current budget simply won’t cut it in the race to capture and retain high-yield business passengers. Our systems are old and costly, our technology is tired and we are falling behind our competitors in the development of customer-facing products and services. Why not invest our cash to replace the failing Unimatic system that recently grounded the airline? Why not invest to provide better customer service tools? Why not invest to build solutions to the flight disruptions that plague the airline? The list is endless, but it does not include shareholder payments.
· Invest in the fleet and international growth. You tell us that United does not “need” to replace its fleet in the next several years and that domestic margins are not strong enough to justify domestic fleet expansion. Even so, why aren’t we investing a portion of our cash balance in additional wide-body aircraft to grow our profitable international operations? Delta continues to expand international flying (and international profits) with a weaker global network. Why can’t we? How is United going to stack up against the competition early in the next decade, when our competitors plan to operate super-efficient B-787s and A-350s and we’re stuck with an aging fleet? Even Delta is talking about ordering 125 next-generation aircraft. The available delivery dates for new aircraft are getting more distant. At some point, we need to demonstrate our resolve to compete in this industry by investing in the future.
Many United employees are substantial shareholders and we, too, are concerned about the erosion of shareholder value since bankruptcy exit. Our financial and sweat-equity investment in United demands your responsible investment in United’s employees and its balance sheet while modernizing the airline and demanding a management team that can get the job done. A shareholder dividend or stock buyback, by contrast, accomplishes nothing for United Airlines other than artificially propping up the share price for a few days or weeks. The Company’s employees cannot sit idly if you choose to squander our sacrifices and our future this way.
Sincerely,
Captain Mark Bathurst
Chairman, UAL-MEC
cc: UAL-MEC
United pilots
.
With a Special MEC Meeting Update for Friday, June 15, 2007, this is MEC Communications Chairman Steve Derebey.
Today's Update includes 4 items:
1. MEC Adopts 3 Resolutions
2. MEC Sends Strategic Plan On Contractual Improvements
3. MEC Conducting Fatigue and Safety Survey
4. Upcoming LEC Meetings
1. The United MEC concluded its two-day special meeting today, adopting the following three resolutions:
Resolution #1:
WHEREAS, United Airlines & Aloha Airlines have announced plans to enter into a new codeshare agreement, and
WHEREAS, our contract gives ALPA the right to propose labor protective provisions (LPPs ) before any such agreement is concluded,
THEREFORE BE IT RESOLVED, the UAL-MEC directs the Master Chairman to use appropriate resources to develop LPPs that protect United pilots' flying and jobs, and that such LPPs are promptly communicated to the Company.
Resolution #2:
WHEREAS, at least one press article has stated that Aloha Airlines CEO Banmiller has speculated that Aloha Airlines may receive United 737s, and
WHEREAS, the UAL-MEC considers any possibility of aircraft transfer to any other airline extremely detrimental to its pilots,
THEREFORE BE IT RESOLVED, the UAL-MEC directs the Master Chairman to express to UAL Corporation's Board of Directors and United Airlines' Senior Management the extreme displeasure, frustration and anger any transfer of United aircraft to another carrier or air transportation company would trigger among all United pilots, and
BE IT FURTHER RESOLVED, the UAL-MEC directs the Master Chairman to use all available resources to resist any transfer of United aircraft.
Resolution #3:
WHEREAS, ALPA and United Airlines negotiated the 777 Crew Rest Facility Letter of Agreement with the explicit understanding that it was tied to the Line Guarantee and LCO Pay Rig Letter of Agreement, and
WHEREAS, on February 21, 2007 the MEC ratified the 777 Crew Rest Facility Letter of Agreement also with the understanding that it was tied to the Line Guarantee and LCO Pay Rig Letter of Agreement, which was not ratified by the membership, and
WHEREAS, the Company, by making public statements about the cost of the Line Guarantee & LCO Pay Rig Letter of Agreement, improperly interfered in the ratification process and materially influenced the outcome, and
WHEREAS, the Company has not itself complied with its commitment with respect to the implementation of the 777 Crew Rest Facility Letter of Agreement,
THEREFORE, BE IT RESOLVED, that the UAL-MEC hereby rescinds its ratification of the 777 Crew Rest Facility Letter of Agreement;
BE IT FURTHER RESOLVED, that the UAL-MEC directs the Master Chairman not to sign said Letter of Agreement, and
BE IT FUTHER RESOLVED, that the UAL-MEC directs the MEC Grievance Committee to expedite the filing of a grievance seeking to enforce the provisions of Letter of Agreement 01-01, 777 Over 12-Hour Flights.
2. Today the United MEC unanimously endorsed the MEC Strategic Plan Contractual Improvements for the pilots of United Airlines. The Strategic Plan was emailed to all pilots this afternoon, and has been posted on the MEC website under the "What's New" banner.
Click Here to read the Strategic Plan.
3. The UAL-MEC is very concerned about pilot fatigue and its potential impact on the operation of our airline. To that end, we have developed a web-based "UAL-MEC Safety and Fatigue Survey" in which we encourage all eligible active United pilots to participate. Please take the time to fill out the survey and give us your views. As in all polling we conduct, your responses are anonymously collected and never individually identified. The survey is conducted by the Wilson Center for Public Research, which conducts all polling for the MEC. Your MEC thanks you for taking the time to give us your feedback.
To participate in the survey:
https://www.ballotpoint.com/SPALPA
In the upper left you will see "ID:" and "PWD:"
* For "ID:" Use your ALPA Member ID.
* The "PWD:" Use your Employee number.
Then follow the menu prompts. If you would like detailed login instructions they are as follows:
* Click the button titled "Login"
* Along the left you will see "View Surveys" Click on that item.
* In the middle of the screen you will see a box listing the survey titled: "UAL-MEC Safety and Fatigue Survey."
* Click on the "Request Survey" button to start your survey.
If you have difficulty accessing the survey, please e-mail mailto:survey@alpa.org.
From: MEC Communications <ualmec-fastread@ames.alpa.org
Reply-To: ualames@alpa.org
To: "ualmec-fastread" <ualmec-fastread@ames.alpa.or
The following letter from MEC Chairman Captain Mark Bathurst was sent to United CEO Glenn Tilton today:
May 29, 2007
Mr. Glenn Tilton
Chairman, President and Chief Executive Officer
United Airlines
77 W. Wacker Dr.
Chicago, IL 60601
Dear Glenn:
As Chairman of the United Master Executive Council of the Air Line Pilots Association, I write to express my deep concern about the future of our company and the deteriorating relationship between the management and employees of United Airlines.
In September of 2002, you arrived to save this company from a jumble of failed programs and failed managers. Over the next four years, you said to anyone and everyone: "Things cannot stay the same. We all have to
sacrifice. We need the tools to change. We have to change. We have to do better and get better at everything we do." The rules of engagement in bankruptcy gave the employees little choice in the matter. We sacrificed - we provided you with the tools you asked for - so you could change our company. "Shared sacrifice" became your mantra.
Four and half years later, and 15 months out of bankruptcy, where are we now? We are not in a good place. Let's face it: United currently lags behind its peers by most measures. Our operating margin is among the
worst of the network carriers. Our operating costs are still not where they should be - despite the lowest-cost labor contracts in the network industry. Our revenue performance last quarter was unacceptable. We are the only network carrier without a new aircraft order and seemingly, without a vision for the future. United consistently ranks at or near the bottom of airline quality surveys by institutions such as the University of Michigan. To compound matters, labor relations are at their lowest point in years and getting worse.
Why? Why do American and Continental do a better job than United at managing revenue? Why do American's non-labor costs remain lower than ours? Why is Delta expanding its international reach every month
while we can't make our international operations work as well as others?
Why are we reducing mainline domestic flying - and shifting United routes to United Express or code share partners such as Aloha - while our competitors are enhancing their domestic systems? Why are we hearing
rumors concerning the sale of aircraft to Aloha (if you believe Aloha's Chief Executive Officer) when we've heard nothing from United? What happened to our ability to compete in the marketplace with United
pilots flying United aircraft? It seems to many employees that management has given up -- that they are content to muddle along in the middle of the pack, collecting their stock and limping through the next several
years in a fog of mediocrity.
From where the pilots sit, this growing sense of lost opportunity resonates throughout every aspect of the company every employee conversation, every flight and every day. The employee survey results reported on Skynet, as bad as they were, are just the tip of the iceberg. The hundreds of employees, not just pilots, who showed up at
the UAL shareholder meeting to demonstrate their anger with management were not symptomatic of a "vocal minority." They are fully representative of their peers across employee groups and divisions.
Most United employees are gravitating toward a deeply cynical view of management: You demanded sacrifice, and we gave it. You took your reward at a level higher than other airline managements exiting from
bankruptcy, and we will be left with what--the mess?
Glenn, we have reached a crossroads, an inflection point in the lifecycle of United Airlines. You can either take bold, dramatic steps now to reverse the decline or stand by and watch things continue to
deteriorate. What can you do? I have three basic suggestions:
* First, meet with the leaders of the six unions, and
representatives of the salaried and management employees. Listen to
our concerns. Engage us constructively. Since consolidation seems to be
high on the list of the plausible, negotiate agreements that ensure
cooperation and provide appropriate protections to your employees if
we do have to march down the consolidation path.
* Second, demand a management team that can get the job done.
When will United hold its managers accountable? American,
Continental, Delta - even US Airways - have brought in managers that perform
quarter after quarter. It appears that our managers do best at making
excuses. The current management team has had their shot with every employee
sacrifice needed to make United better. We gave you the tools you
said you needed. It's time to reassess.
* Third, open negotiations for new labor agreements on August
1, 2007 with the goal of putting new agreements in place for every union
by February 1, 2008 - the second anniversary of our emergence from
Chapter
We will jointly declare that day as a new beginning for the new
United. Why not? What should we be afraid of? I strongly urge you
to consider the following: last week, the Chief Executive Officer of
Continental Airlines reached out to the ALPA MEC Chairman at
Continental and offered to talk about opening pilot contract negotiations a full
18 months ahead of the December 31, 2008 amendable date. The world did
not end. To the contrary, Wall Street continues to value Continental at a 25% or
better premium to United. I think Continental clearly understands labor relations
in the 21st Century. Do we?
Now is the time to save our company. You came here in 2002 with the
respect and goodwill of your employees. You asked us to sacrifice and
we stuck by you through a terrible 39 months in Chapter 11. You said
that you would change the company for the better. Employees from all
divisions are looking to you for hope, any hope, that their sacrifice
and sweat equity have not been for naught.
It's not too late to respect and recognize the most important part of United Airlines: the people who, day in and day out, make our airline fly. We've done our part. It's now up to you. I look forward to your response.
Sincerely,
Captain Mark Bathurst
Chairman, UAL-MEC
Cc: UAL-MEC
United pilots
By Paul Merrion
April 20, 2007
(Crain’s) — Pilots at United Airlines firmly rejected a tentative deal to ease possible shortages of flight crews during the busy summer travel season.
Voting more than 2-to-1 against a tentative agreement reached by management and union leaders, pilots set the stage for hard bargaining to win back pay and benefit cuts they took to help pull United out of bankruptcy last year.
“The message you've sent is clear: While contractual improvements are critical, you are through providing this management relief in any way, shape or form,” Capt. Steve Dereby, communications chairman of the Air Line Pilots Assn. at United, said in a message to pilots Friday.
The agreement would have given United more scheduling flexibility and allowed senior pilots to fly more hours per month. In exchange, pilots would have won a higher minimum number of guaranteed hours of flying time each month and elimination of a lower pay structure and other cost-saving provisions for junior pilots who fly for United’s low-fare Ted subsidiary.
While the agreement was not expected to increase or decrease United’s overall costs, it became controversial because many pilots viewed it as a lopsided deal that would reduce jobs and time off for pilots.
Some pilots also viewed the deal as a missed opportunity to gain leverage over United this summer, because it would have helped the company cope with a potential shortage of pilots that they believe will cause flights to be canceled or delayed.
Related story:
COUNCIL 34 VICE CHAIRMAN’S REPORT
April 2007
Pilots of Council 34,
Most of you are aware that I was one of the six members of the MEC that voted not to accept or endorse the tentative agreement. I have been asked why I voted NO; and my report for this month will explain that vote, as well as my personal opposition to this agreement. First though, let me again share the first couple of paragraphs from last month’s report.
“This management group’s future vision for us includes dramatic increases in international code sharing, ever increasing domestic code sharing-direct or indirect, a dramatic reduction in short haul and narrow body flying-and the outsourcing of virtually all nonessential labor. Their definition of ‘nonessential’ does not coincide with ours.
This management group is operating on a 15-20 year strategic game plan designed to dramatically reduce or minimize our labor force, our overall fleet size, and our wages and benefits…Step by step, this management group is methodically maneuvering us in a seemingly logical strategic direction of their design that is totally counter to our objectives. Each step will reinforce the logic and inevitability of the succeeding steps. Their answer to our complaints will always be, “It is only logical and realistic in light of the marketplace in which we compete. With each passing year these people will continue to structure that “marketplace” such that it validates their arguments.”
FLEET INFO:
UAL 11.5 yrs average; CAL 8.8, LCC 11.3, DAL 12.6
Using 25 years as life of an aircraft;
Looking at BOTH 787 and A350 for 2012 and beyond
Aircraft will be available (Boeing and Airbus)
United Airlines has to EARN THE RIGHT to buy new aircraft�
Replacements can be 320 or 737NG family, but neither aircraft is real “next generation� aircraft
UAL looking for new technology aircraft to refurbish fleet with max efficiency
Galleys in some domestic aircraft to be replaced by seats
e fact that this management team, despite the most comprehensive and powerful route network in the industry, is still struggling to ensure consistent execution of our own business plan. In addition, it is imperative that we show a consistent profit stream as a stand-alone enterprise, which is the true test of our ability to master our own existence, let alone someone else’s. It is not lost on any of us that most suggestions by employees for improvement or change fall into the black hole of the “not invented here” syndrome, again troublesome as we contemplate any consolidation or foreign control scenario.
We – the United MEC and ALPA National -- will continue to oppose relaxed constraints on foreign control. No one from the labor side of the equation sees any benefit in turning the reins over to a foreign entity. Congress has heard you loud and clear, and they agree with us. We’ve told the Department of Transportation that the current foreign control restrictions must not be relaxed. Your voices need to continue to reach our elected leaders in Washington. They need to hear that you are with them.
IN CONCLUSION
It is not my intention to deliver a “doom and gloom” message, or one that carries the “more of the same” theme. Notwithstanding the fact that we have seen little change in the actions and attitudes of the Company to reasonably predict anything other than the status quo, there is a new vitality and vibrancy within the organization we call ALPA. I see significant, positive changes in the way we will do business internally and nationally. This new approach and philosophy will ultimately affect the way management responds to us and does business with us. We will soon have new tools in our bag, utensils that will make us a much stronger and powerful national union supporting our efforts.
Change can only happen if we each resolve to unify our efforts to bargain collectively and create a better life for all of us. Stay safe, stay strong, stay focused and stay solid. Our collective future demands it.
Fraternally and in solidarity,
Captain Mark Bathurst
Chairman, UAL-MEC
Flight Operations Announces Staff Changes Spurred by Key Retirement
----------------------------------------------------
A key retirement in the Flight Operations Division has prompted several organizational changes, all effective May 15.
First, after 19 years of service to United, Captain Brad Thomann, managing director-Flight Standards and Training at the Denver Flight Training Center (DENTK), has elected to retire effective May 15. He is leaving United to join Alteon Training, a wholly owned subsidiary of The Boeing Company, as executive vice president-Training and Operations. In his time with United, Thomann also served the company as a line pilot, instructor, flight manager, O'Hare chief pilot and head of training.
Captain John Winter will become managing director- Flight Standards and Training at DENTK. Winter is currently United's managing director of Domicile Operations and system chief pilot. He has been with United for 30 years and served in a variety of roles.
Captain Pat Durgan has accepted the position of managing director-Domicile Operations and system chief pilot, replacing Winter in this role. Currently United's chief pilot in Seattle, Durgan has been with the company for 20 years.
In Pat's place, Captain Ulrika Wallitner has agreed to become the acting chief pilot for Seattle. Wallitner currently is a Seattle-based 737 captain.
"It is with mixed emotions that we say goodbye to Brad," says Captain Steve Forte, senior vice president-Flight Operations. "His service to United has been invaluable, and he leaves us one of the strongest and most highly regarded training organizations in the business. We congratulate him on this great opportunity, and thank him for his service. Thank you, also, to John, Pat and Ulrika for stepping up to greater responsibility, and for their continuing service to the company."
To: UAL Pilots
What's New
Friday, April 14, 2006
View Letter from Capt.Bathurst to President Woerth
United pilot's widow defends crew's role in 9/11
Former flight attendant has been waiting 4 1/2 years to tell of Flight 93's final minutes
The release of Flight 93's cockpit recording meant that the widow of the hijacked plane's pilot could finally tell her husband's story.
While everyone from the federal commission analyzing the Sept. 11, 2001, terrorist attacks to Hollywood filmmakers has lauded the passengers who fought back against the hijackers and spared the plane from hitting its intended target in Washington, Sandy Dahl believes the crew's contributions have been overlooked.
UPDATE ON NEXT SCHEDULED STOCK ALLOCATION TO ALL EMPLOYEE GROUPS AND ALL CREDITORS
At the special MEC meeting on April 5, 2006, the MEC took action to revise the stock allocation model and work with United to continue stock distributions in accordance with our Contract. We were advised of a timeline that indicated ALPA’s and all others' next distribution should occur the last week of April. We have now been advised by the Company that the next allocation date has not been determined but can be expected in early May. This delay is due to several issues outlined below:
1. Per ERISA and by ALPA agreement, the Company has to comply with the requirements of the Plan Document controlling equity distributions. The Plan Document outlines the equity allocations for pilots along with other employee groups. The Plan Document describes in detail UAL's rights and responsibilities as the sponsor of the plan. Pilots will recognize this plan as the PDAP.
Within this document are descriptions outlining who and when a pilot is eligible to participate in the plan, employee and employer contribution amounts and timing, withdrawal and distribution rules, stock allocation methodology, and other ERISA-required information. To view the Plan Document, log on to SKYNET, go to employee benefits, retirement plans.
2. ComputerShare, the outside vendor UAL has retained to handle the non-qualified portions of equity distributions, requires a review period before they will process stock distributions. That review period cannot begin until the Company's internal compliance review is complete. The legal review of the Plan Document will take longer than the Company estimated.
As we have previously discussed, any allocation and distribution of stock has to be reviewed in light of internal compliance, IRS, ERISA and all applicable legal regulations. When we receive further information we will communicate it to you.
UAL-MEC Retirement and Insurance Committee
-------------------------------------------------------------------------------------------
Captain Bathurst Writes Captain Woerth: Help Change IRS Code Regarding Note
In a letter to ALPA International President Captain Duane Woerth, United MEC Chairman Captain Mark Bathurst has asked ALPA to use every resource possible to work toward persuading Congress to amend the Internal Revenue Service code to treat proceeds from corporate securities issued to or for participants in a terminated benefit plan as a "qualified" rollover contribution, as defined in IRC 401 and 415. "Such legislation would allow pilots to roll ($550 million convertible note) proceeds until retirement," said Captain Bathurst. "The proposal would provide the greatest benefit to those who lost the very most from pension termination -- older pilots who cannot build a meaningful defined contribution account and who will receive substantial proceeds from the notes or other securities."
United MEC Week In Review
(Produced by the MEC Communications Committee)
Friday, February 24, 2006
What's New
Today in Chicago, the 7th Circuit Court of Appeals conducted oral arguments regarding an appeal by the retired pilots regarding the approval of the ALPA-United 2005 Restructuring Agreement.A three-judge panel heard the arguments . The retired pilots were seeking reversal of Judge Wedoff's approval of the Agreement so that the Bankruptcy Code Section 1113 process might be invoked to permit the appointment of an authorized representative for the retired pilots. The retired pilots' attorney indicated they wanted a chance to negotiate over the proposed elimination of the non-qualified benefits.
Questions were posed by the judges to lawyers from the Company, ALPA and the retired pilots regarding their arguments.
Some of the areas of interest were: the provisions of the Restructuring Agreement regarding pension issues; how the Bankruptcy Code
Section 1113 process dealt with collective bargaining agreements; what legal rules would be at issue if the retired pilots were afforded a representative; whether case law from another Circuit Court of Appeals that was issued prior to enactment of Bankruptcy Code Section 1114 (in which a representative is appointed for retiree health issues) would apply in United's case; and the difference between Bankruptcy Code Section 1113 and Section 1114 regarding the applicable procedures. United had filed a motion to dismiss the retired pilots' appeal on the grounds of the company's exit from bankruptcy. This motion was not addressed today, nor were arguments that the appeal was not permitted on other procedural grounds. There was no indication from the three-judge panel when a decision might be issued.
We will keep you informed as developments occur.
Post-Bankruptcy Exit Employer Contributions
UAL-MEC R & I Committee
The R & I Committee continues to monitor the post-exit contractual employer shares and cash contributions to the PDAP. We have confirmed that the following employer contributions have been made:
* 5.6 Million UAUA shares valued at $202 Million.
* $70.4 Million of Claim sale proceeds absorbed into the PDAP
* $7 Million representing January 2006 C-Plan contribution
* $27 Million representing C-Plan contributions between June – December 2005
The figures above do not include cash and stock distributed directly to pilots.
Q1. WHERE CAN YOU FIND YOUR INDIVIDUAL EMPLOYER CONTRIBUTIONS?
A1. Go to the PDAP website at http://resources.hewitt.com/pdap. Once online:
1. Click on “Your Investment and Account Summaries” located to the right of the blue box which shows total account balance.
2. Then click on the yellow “Investment Transaction” tab.
3. Scroll down toward the middle of the page to see your “Activity Detail- United Airlines Pilot Directed Account Plan”.
Here you will note the following transactions:
* All transactions dated on February 2, 2006 showing an “Employer C Account” represent your 2005 June-December retroactive employer C-Plan contribution(s).
* All transactions dated on February 3, 2006 showing an “Employer C Account” represent your January 2006 employer C-Plan contribution(s).
For those pilots who participated in the claim sale, you will note the following transactions:
* All transactions dated on February 6, 2006 showing an “Employer C Account” represent proceeds from your claim sale if elected. There are at least two entries representing the IRS 415 “Headroom” available and contributions made for Plan Year 2005 and 2006.
If you received a stock allocation, you will note the following transactions:
* All transactions dated on February 7, 2006 showing an “Employer C Account” represent your stock allocation that was subsequently transferred to your Schwab Individual Brokerage Account. There are at least two entries representing the IRS 415 “Headroom” available and contributions made for Plan Year 2005 and 2006.
Please note, that depending on your C-Plan investment elections; you may see multiple entries on each date. Each fund you elected will show an allocation of C-Plan money.
Q2. WHERE CAN I FIND MY STOCK ALLOCATION?
A2. Stock allocated to you has been posted to an individual brokerage account at Charles Schwab & Co.
If you have yet to receive your Schwab account number, contact the PDAP Service Center at 1-866-OUR-PDAP (1-866-687-7327) between 0700-1900 CST, pressing *0 (Star/Zero) at any time during your call will take you to a funds representative. After confirming your information they should be able to give you your assigned Schwab account number.
You can also contact the Schwab Personal Choice Retirement Account (PCRA) Team directly at 1-888-393-7272, or you can…
Access your account on-line at www.schwab.com. To do this:
1. Sign-on with your log-in ID and Password (for help contact the Schwab PCRA Team at 1-888-393-7272).
2. Click on the top left “At-A-Glance” tab located below your toolbars.
3. You can find your UAUA shares under the “Holding Summary”.
Q3. HOW DID YOU DETERMINE AVAILABLE ROOM UNDER IRS SECTION 415 LIMITS. HOW WERE 2006 EARNINGS ESTIMATED?
A3. Earnings for 2006 were projected by United using your actual 2005 earnings plus the May 1, 2006 contractual pay raise. An analysis was completed to project your employer B & C contributions, which were calculated by multiplying your estimated 2006 annual earnings projection by 9% and 6% and the sum of these projected contributions were subtracted from the available IRS Section 415 limits for 2006. The remaining IRS Section 415 “headroom” was then used to absorb either your claims cash or stock to the maximum extent possible. Actual Employer B and C contributions will continue to be contributed into the PDAP during 2006. If it looks like you had IRS Section 415 room that wasn’t used, it is probably because you haven’t allowed for 2006 B & C contributions.
Claim sale proceeds that were not able to fit into your PDAP will be forwarded to you in the same manner in which you receive your paycheck.
Stock Allocation shares that were not able to fit into your PDAP will be available to you through Computershare, UAL’s transfer agent. The Company will mail you a letter tomorrow detailing how to activate your Computershare account online or via a phone representative. The letter will also walk you through how to sell your shares via Computershare or transfer your shares to the brokerage account of your choice. MEC Communications will also email this information to as soon as we receive it, hopefully on Thursday, February 9.
Lastly, remember that the C-Plan contributions are a separate money type within the PDAP. Failure to make an investment election will result in your Employer C-Plan contribution defaulting to default to the Money Market Fund.