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Officer Letter: Jan 20, 2004
MEC Officer Letter
United management intends to exploit Section 1114 of the Bankruptcy Code
January 20, 2004
Ladies and Gentlemen:
Last week United management announced that they will exploit Section 1114 of the Bankruptcy Code by seeking substantial changes to the Contractual medical benefits for those Flight Attendants who retired prior to July 1, 2003. This action by senior management has the potential to put everything for which we have worked in jeopardy.
We're sure that each of you knows someone who retired after dedicating her or his working life to this Company. In fact, over 2,500 Flight Attendants retired before the July 1, 2003 deadline believing their medical benefits were protected. Management now seeks to slash all retirees' medical benefits by abusing Section 1114 of the Bankruptcy Code in spite of the airline's return to profitability. The cuts are not necessary for United's successful reorganization.
In many ways, the life changing decisions our former flying partners were forced to make changed our lives as well. Prior to 2003 only 1,600 Flight Attendants had ever retired in the 77-year history of United Airlines. As a result of the large number of retirements last year, Flight Attendants were recalled from involuntary furlough to active status. The sacrifices of those who retired have secured the career and future for many of those junior to them. The actions they took saved many of our junior Flight Attendants jobs and millions of dollars for the Company in the form of lower wages and benefits. We all have a vested interest in protecting these retirees who have already given so much.
We have received hundreds of calls from retirees and retiree advocacy organizations vowing to stop management's plan to change retiree medical benefits in a court of law. Failing a successful outcome, the retirees will seek the right to return to work at United Airlines. They simply cannot afford the changes being contemplated.
Effective in May 2003, a Letter of Agreement was put into place to ensure that Flight Attendants who retired before July 1, 2003 would have access to health care benefits less costly and more comprehensive than the benefits to be provided after that date.
We filed a Master Executive Council Grievance for an expedited hearing to
stop senior management of our airline from unlawfully imposing devastating
cuts to retiree medical benefits by unilaterally changing the Agreement reached
between the parties in the spring of 2003.
Clearly, changing these benefits is not needed for the Company's emergence
from bankruptcy and continued success. United is performing well, has met all
of its financial goals and is scheduled to emerge from Chapter 11 later this
year. It is obvious that United management is taking this action simply because
they can within the context of the bankruptcy proceedings. If management actually
needed to cut these benefits to successfully emerge from bankruptcy this would
have been attempted during our concessionary negotiations when United's situation
was dire. This is nothing more than a brazen attempt to take more from us.
We must not allow this action to go unchallenged.
The sacrifices of Flight Attendants, other employees and recent retirees are
the reason United has begun to return to profitability. Cooperation between
management and workers is the only way our carrier can successfully navigate
the bankruptcy process. For the sake of our airline, we sincerely hope management
sees the value of abandoning this ill-conceived plan before it hurts thousands
of dedicated employees.
The United Master Executive Council unanimously passed a resolution that emphatically
confirms its commitment to represent the retirees, condemns United for its
actions and initiates an aggressive and escalating campaign involving the traveling
public, Congress and all AFA members, active or retired. We are forming a Master
Executive Council Committee of retired Flight Attendants and every Local Council
is forming a committee of active and retired Flight Attendants to coordinate
our response to this devastating announcement. Every United employee who ever
set foot on the property is under the same assault, whether management, non-management,
or Union. We are organizing a daunting coalition of these people and their
representatives to protect what we've been promised. We need your help.
Contact your Local Council to
volunteer your time or talents in this effort. Be sure to visit our
website at www.unitedafa.org for complete and up to date information.
AFA remains committed to all of you who have helped to build the Flight Attendant
profession and this airline. We will fight this through every means available
in the court and in the arena of public opinion.
Our Solidarity Will Lead Us To Our Future Success!
| Greg Davidowitch President |
Helen McArdleVice President |
Shirley Barber Secretary-Treasurer |