Union HQ Sent This Shot Across the Bow:

United Airlines Association of Flight Attendants, AFL-CIO, Master Executive Council President Greg Davidowitch made this statement on the flight attendants' intention to file an objection with the bankruptcy court over United's proposed new Key Employee Retention Program for mid level management [sic] employees:

"As our country celebrated our nation's birthday, United management celebrated by asking the bankruptcy court to grant gifts to 'key employees' that are being paid for with money provided by United workers' concessions. It's as if United decided that an appropriate way to celebrate the Fourth of July would be to take after former American CEO Donald Carty's idea that a few should prosper at the expense of many.

"The need for this 'KERP' is fabricated. The flight attendants are going to file an objection to this new money grab. People who are committed to United's future success are not leaving the company in any greater numbers than among other employee groups. On the contrary, United's been praised by the media and Wall Street for its ability to lure key talent from competitors and other corporations.

"Flight attendants are outraged at the prospect of a select group of employees receiving bonuses in light of what we have been through the past two years. When we agreed to cut our pay and work rules, it was with the promise of a better future for all United employees. A critical component of the concessionary negotiations is a Success Sharing Program that was designed to be fair and equitable for everyone to share in the rewards of a new United Airlines.

"Senior management should remember how contentious the last KERP was for our members. This new KERP flies in the face of that principle and can only be viewed as divisive and an abrogation of the commitment for shared sacrifice.

"The dedicated, front line employees of United are key to its successful reorganization. If United believes it necessary to reward employees for their service to the company while in bankruptcy, it should implement the Success Sharing Program a year earlier than planned for all employees, not just a privileged few.

"We have worked with United management during the bankruptcy process to ensure our airline's success, and we will continue to do so. But, we will also challenge decisions when they demonstrate the kind of poor judgment shown in the filing of this KERP motion. This type of decision takes us two steps backwards as we struggle to gain forward momentum for a successful emergence from bankruptcy."

United explained:

Jeff Green, UAL spokesman, explained to ANN, "These [ISD] people have experienced layoffs in their ranks; they also took a pay cut on December 16, 2003, anywhere from 3% to 11%, averaging around 7-10%." [These are management-scale people; they are not managers --ed.]

"We're losing 3-5 employees from that department a week. Their skills are highly marketable. We're experiencing a 'brain drain' -- they're getting offers of 20% or better [raises]. The work these people are doing is essential, especially during our restructuring.

"On December 9 [the day UAL filed for Chapter 11 protection], we filed our original 'KERP-1,' essentially for top managers -- it had a $20.7 million cap, and covered 350 people -- executive-level, high-level positions. This one is capped at 600 employees, and $9.5 million. More people -- less money. However, that $9.5 million doesn't mean we'll go all the way to that cap -- it's a cap. We have 1200 employees in the Information Services Division; there are some outside that department who are eligible under this program. However, managers, directors, and executives will not participate."

Jeff let us know that, "More people have left ISD in the first quarter of 2003, than during all of 2002."

FMI: www.unitedafa.org; www.united.com