Mon, Jan 19, 2004
Airline Wants To Cut Retiree Benefits
The United Airlines Master Executive
Council of the Association of Flight Attendants-CWA, AFL-CIO, says
it's filed a grievance against the carrier, asking for an expedited
hearing to stop airline management from unlawfully seeking to
impose devastating cuts to retiree medical benefits by unilaterally
changing the agreement reached between the parties in the spring of
2003.
The union says United signed a letter of agreement in May 2003
to ensure that flight attendants retiring before July 1, 2003 would
have access to health care benefits that were less costly and more
comprehensive than those that would be in place for those who
retire after that date.
Over 2,500 flight attendants retired before the July 1 deadline
believing their medical benefits were protected. United is now
seeking to slash the medical benefits for those retirees by
exploiting Section 1114 of the bankruptcy code despite the
airline's return to profitability. The cuts are not necessary for
United's successful reorganization.
"We will employ every legal means
necessary to stop United management's attempt to make 2,500 loyal
employees become dupes of management's dishonesty," said AFA United
MEC President Greg Davidowitch. "United management's attack on
these workers will cause incredible harm to these retirees who are
now surviving on the fixed, modest pension of a flight
attendant.
"The sacrifices of front-line employees and recent retirees are
the reason United has begun to return to profitability,"
Davidowitch said. "Cooperation among management and workers is the
only way for our carrier to successfully navigate the bankruptcy
process. For the sake of our airline, I sincerely hope management
sees the value of abandoning this ill-conceived plan before it
hurts thousands of long-time employees."
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