United’s Demands for Changes to our Contract
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On December 12th and 13th, United management met with the Members of the Union Coalition to provide a status of the airline and give each labor group a list of savings to reach management’s suggested $2.4 billion in annual labor savings.
Our legal and financial advisers are in consultation with the advisors from the Union Coalition and are now attempting to evaluate information contained in the company’s presentations. They are, however, still awaiting detailed financial information on the initial concepts outlined by the company. Unfortunately, management provided incomplete and inconclusive information to AFA, and all of the Unions, which has caused a significant amount of time to be wasted.
AFA finds the company’s list to be overreaching and unrealistic. Our negotiators are currently engaged in trying to obtain the information we need, and we stand ready to negotiate in good faith to provide United the savings needed for a successful reorganization.
Our goal continues to be, to have control and influence over changes to our Contract and to prevent United from petitioning the Court to change our pay, benefits, and work rules unilaterally.
The Company has indicated that nothing in its presentation is “take it or leave it,” and that “there is room for negotiations.”
An 1113 motion is a procedural step in a bankruptcy proceeding and is one that is often expected. The company announced this week that 1113 motions will be filed on December 26th. This filing is simply procedural and will not immediately change our Contract.
However, we are concerned that many of the Contractual issues targeted by the Company are neither necessary to the reorganization, nor are they fair and equitable. AFA will continue to negotiate with the company throughout the 1113 proceedings.
While we had hoped to gain clarity for you about the extensive list of Contractual changes initially presented by the Company, we are now aware that with or without clarity, each of these areas will be named in the 1113 filing on December 26, 2002. Therefore, although we do not have specific information about what will be required of Flight Attendants for United’s successful reorganization, we do believe that it’s important that you are aware of the Contractual changes that will be named through the 1113 motion.
The company’s list of conceptual Contract changes is incredibly extensive and represents nearly every Section of our Contract. This list will change through negotiations. As you view this list, know that you will be able to participate in an on-line and phone-in survey starting Monday, December 23, 2000 at noon EST, to help guide the Financial Review Committee and AFA advisors in the final days of the talks, when the most difficult choices will be made. The survey will be completed by January 6, 2003 at noon EST. On Monday, instructions for completing the survey will be listed on our website, www.unitedafa.org, sent in AFA E-lines, or available through your Local Council.
Remember, AFA does not have clarification or specifics about the majority of targeted Contractual items listed. We will provide as much information as we have available throughout this difficult process. Continue seek the most current information and actively support our solidarity as we navigate this difficult time.
