January 9, 2005
While a bankruptcy judge threw out an agreement between United Airlines and its pilots that would have cut pay and pension contributions by $180 million a year in exchange for notes convertible into stock, the struggling carrier has managed to secure concessions for its cabin attendants.
United management had sought additional concessions as the airline continues to reorganize in bankruptcy. The agreement for contract changes is now subject to approval by the flight attendants' Master Executive Council and ratification by the union's membership.
Earlier, a judge scrapped the renegotiated deal with pilots, saying it would unfairly shift pension obligations onto the government while giving pilots undue control over other labor contracts.
"Under the onerous realities of the bankruptcy process, flight attendants are faced with difficult decisions about our future," said Greg Davidowitch, President of the AFA's United Master Executive Council. "We have fought management every step of the way to ensure that this agreement would not provide a penny more from flight attendants than is legally necessary. We sought to ensure that any contractual change would be shaped in a way that avoids destruction of our career."
This newest agreement for concessions does not include changes in the area of pensions, and AFA said it will continue to forcefully oppose the elimination of the flight attendants' pension plan. Additional details of the agreement will not be announced until after the union's leadership meets to review and consider approval of the contractual changes.
"While a consensual agreement avoids the destructive potential for court rejection of the flight attendant contract, no one should minimize the decision our members face in considering additional sacrifices," Davidowitch said. The AFA United Master Executive Council will meet in Chicago for a special closed session on Tuesday, January 11, 2005, to discuss the agreement.
