Yesterday afternoon, United's pilots ratified the 29% temporary pay cut deal the ALPA leaders had blessed, making that first big step toward helping the airline get taxpayer-backed risk financing from the Air Transportation Stabilization Board, effectively staving off defaults that could get the airline liquidated this Spring.

Such a significant cut, from such a highly-visible group, was important to United's strategy, which includes getting concessions from its other four major unions, all of which (except the IAM Local 141-M) have also agreed to do their parts to keep the airline above ground.

Shortly thereafter, the Air Line Pilots Association (ALPA), the union representing United's pilots, the Transport Workers Union (TWU), representing United's meteorologists, and the Professional Airline Flight Control Association (PAFCA), representing United's dispatchers, also ratified cutback agreements.

UAL-MEC Chairman Captain Paul Whiteford had this to say, in reaction: "Today, our pilots, following the advice of their union leadership, acted in good faith to accept an immediate 29 percent temporary wage cut that provides interim financial assistance to help stabilize the Company in the initial months of bankruptcy and to provide a substantial additional period for further negotiations. Our union leadership now calls upon the Company to reciprocate by working with ALPA on a plan to reorganize the Company." He added, "We have been disappointed at management's approach to labor discussions since the bankruptcy filing and we expect that this significant pilot sacrifice will encourage the Company to engage in a collaborative discussion over a reasonable economic settlement of ALPA's contract."

Glenn Tilton, chairman, president and chief executive officer of UAL, said, "ALPA's, TWU's and PAFCA's ratifications are important steps forward as we work to transform United. We are grateful to the unions' members for their support and for demonstrating that the people of this company are committed to making the tough choices and difficult sacrifices necessary for United to emerge from Chapter 11 as a more competitive business. We look forward to continued cooperation with all of our unions and employee groups as we work to reach consensual agreements that will help us redesign our business and compete more effectively in the long term."

Flight Attendants' Vote to Be Disclosed Next

The Flight Attendants, United's biggest union, should announce their vote's results, on a 9% pay cut arrangement, today (Wednesday).

Whether the bellicose machinists agree or not will probably soon be moot: U.S. Bankruptcy Judge Eugene Wedoff is likely to tell them their contract is toast, late this week. That action would take 'negotiation' out of the trembling hands of United's management, and give the Court the power to decide what the mechanics will make. The ultimate result of that strategy will be a huge factor in the survival of the airline; and it may thus figure prominently in the next union elections.

FMI: www.ual.com