United's Flight Attendants Threaten CHAOS™
Source: Chicago Sun-Times
Author: Mary Wisniewski
United Airlines' flight attendants say they could strike the bankrupt airline this summer, now that the Pension Benefit Guaranty Corp. has taken over its pension plan.
"Now they've done it," said Greg Davidowitch, president of the Association of Flight Attendants at United, in a statement. "United management, working hand-in-glove with the PBGC, has changed our contract without our consent. This flagrant foul has triggered our right to strike."
In May, a U.S. bankruptcy judge approved an agreement between Elk Grove Village-based United and the PBGC, a federal agency that insures corporate pensions, that allows it to terminate and take over United's four employee pension plans. The takeover, which affects about 121,000 active and retired workers, is the biggest pension default in PBGC's history.
The takeover will cost many United employees thousands of dollars in annual benefits. As of Thursday, the agency had taken over all United pension plans except the pilots' plan, which is in litigation over the termination date.
United claims a strike would be illegal, and that its 20,000 flight attendants are the only employee group which has not worked out a replacement pension plan.
Airline assures customers
Asked what United would do if a strike hit during the busy summer travel season, United spokeswoman Jean Medina said the airline is ready to make sure customers get where they need to go. "Any action like that is bad for the company, bad for the customers and is bad for our employees," Medina said.
The flight attendants' union says United's "sole focus" at the bargaining table is that the defined benefit pension plan must go. The union wants an alternative.
Davidowitch said the union continues to pursue legal and legislative solutions to preserve pensions, but Thursday's termination "sets the stage" for CHAOS strikes this summer.
"CHAOS" stands for "Create Havoc Around Our System" -- a tactic of surprise, intermittent strikes. CHAOS could be in the form of a systemwide, one-day strike, a strike targeted for one specific city, or an individual flight at a remote location.
"This is a cry for attention," said bankruptcy consultant Bill Brandt, head of Chicago-based Development Specialists Inc. "I think it's a very serious threat. If I was on United's side, I would do what I could not to back these people into the corner." Brandt expressed doubt that management was up to the task.
Also Thursday, a U.S. House committee passed the Pension Protection Act, aimed at avoiding future United-type pension crises. The bill includes provisions that would require employers to meet a 100 percent pension funding target, and phases in increases in employer premiums paid to the PBGC.
