Angry United Workers Threaten Strikes As Early As Wednesday
From: CBS
Author: Jim Tilmon
A legal victory for United Airlines could lead to some major turbulence for passengers and the airline in the days ahead. A federal bankruptcy judge in Chicago approved United’s plan to dump employee pension plans. Angry workers are now making threats that could affect your next flight! CBS 2 aviation expert Jim Tilmon reports on the pension battle and the impact for the airline and the public.
The judge in the case has cleared for takeoff what will be the largest corporate pension default in American history. United employees now stand to lose a third of their pensions -- essentially thousands of dollars a year for their retirements. That's why they're threatening "CHAOS" as early as tomorrow.
Their anger is understandable. United Airlines flight attendants, pilots, mechanics and retirees feel betrayed.
The world's second largest airline has been in bankruptcy for two-and-a-half years. Its management says the only way it could keep flying, was to ground its pension obligations. On Tuesday, a judge reluctantly agreed.
Airline analyst Brad Bartholomew said, “For employees that are losing their pension this is a horrible event. It's a life-changing event and it's promises that have been made to them for 10, 20, 30 years that are now being broken."
Greg Davidowitch of the Flight Attendants Association said, “We have worked longer, we have worked harder for less money, we have dedicated ourselves time and time and time again to a successful reorganization, despite the efforts of the liars, thugs and thieves who are in control of this corporation today."
Sara Nelson Della Cruz said, “We have come to the table with them, we have presented them with a plan to save the pension plans, to make up for the funding shortfall and keep the pension plan intact, and they want nothing to do with it."
Now, "CHAOS" is coming.
"CHAOS" is the acronym used by flight attendants to warn that if United terminates the pension plans, it will stage surprise, intermittent strikes that could ground your next flight. It stands for Create Havoc Around Our System.
And it could start as early as tomorrow.
"We'll be aggressively looking and seeking to replace this management team, because as I've said before, either they go or we go.”
United officials believe such a strike would be illegal. In the meantime, with fuel costs sky high and fares at record lows, United still needs more financial help. On Wednesday there's a hearing on further wage and benefits cuts for its workers.
