UAL losses mount; United union threatens

[Dover]

CHICAGO/NEW YORK (Reuters) - UAL Corp. (UALAQ.OB: Quote, Profile, Research) on Wednesday reported a $1.1 billion first-quarter net loss as ground workers for its United Airlines unit voted overwhelmingly to authorize a strike if a judge allowed the carrier to end their union's contract.
The vote from members of the International Association of Machinists and Aerospace Workers was another sign of labor unrest at United. The No. 2 U.S. airline on Tuesday won court approval to terminate pension plans for thousands of employees, a step it says was needed to cut costs and exit bankruptcy.

"Our members know the risk of a strike, but if United fails to respond to our members' needs, it is a step they are prepared to take," IAM District 141 President Randy Canale said in a statement. "United used the bankruptcy court to point a gun at their employees -- they can only blame themselves if it backfires."

...snip...

The trial is scheduled through the middle of next week, although talks between United and the two unions continue and Chief Financial Officer Jake Brace said United would still prefer to reach agreements with the unions.

United does not believe ground workers would have the right to strike even if the airline receives, and exercises, the authority to reject its agreements, Brace said. ...cont'd

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-05-12T012425Z_01_N11215389_RTRIDST_0_BUSINESS-AIRLINES-UNITED-IAM-DC.XML

[BrainRants]

1. Is it just me, or is United a powder keg just waiting to explode?

With the pension default and now this, how long before the employees begin demanding heads?

[Dover]

2. I think you're right. And I'll bet it spreads beyond United

This is the new corporate business model; unions and worker's rights are NOT part of the plan. THAT is explosive!

[blondeatlast]

11. They already are--this is the BIGGEST issue for the flight attendants.

IF Tilton resigns, the strike could be averted.

http://www.unitedafa.org/mec/president/ltrs/details.asp?ID=125

If this isn't throwing down the metaphorical gauntlet, I don't know what is--it came almost immediately after the ruling:

This is the end of labor relations at United Airlines with Glenn Tilton and his henchmen at the helm. The United Airlines that we have worked so hard to build is gone. Our efforts today are focused on creating a new airline from the ashes of the old and we will do this by employing escalating CHAOS™ activities focused on bring down this management group. The decisions that they have made are short-sighted, destructive and are contrary to a successful reorganization.

This management team has long since proven it cannot run an airline. Now it has shown that it has no common sense – you cannot run a service business while waging war on your front line employees. The United Board of Directors must act quickly to remove these executives before they destroy this airline.

All emphasis mine.

[BR_Parkway]

3. WTF? United does not believe ground workers would have the right to strike

So are they going to send armed guards to their home if they just don't show up for work?

They act like the Union is supposed to continue to operate/negotiate on good faith, even though the company isn't. Seems like the workers might be better covered if they just caused the whole thing to shut down and sell off the assets vs trying to keep it afloat anymore.

[Wright Patman]

4. During the last Robber Baron era

100 or so years ago, the Rockefellers put a major hurt on some mine workers in Colorado. I think they damn near massacred a whole community. This is what is about to happen all over this country. That's why the NWO neocon scum needed the USA PATRIOT Act.

http://www.hartford-hwp.com/archives/45b/030.html

[flygal]

5. The CEO made $1.1 million

Now, I think that's reasonable. I also think my husband's salary of $80K is reasonable. But, my husband runs a small plant in which the workers have great wages, awesome benefits, and the company turns a nice profit.

I guess what I'm trying to get at is - treat your workers like fricken human beings and maybe the rest will all fall into place. Telling your workers - many are low wagers - that they are screwed doesn't do much to get ahead, put your company in a position that royally pisses off your workers - and that CEO is not worth his salary at that point. United is going to fail with that leadership.

My husband's boss is a good example of a good manager. He did away with a lot of stupid perks for management - preferred parking spots for one, and treated his workers with the respect they deserved. He's been a very successful businessman and would be well worth a salary of $1.1 million.

[no_hypocrisy]

6. Uniform pain: let the CEO reduce his salary and forego his bonus.

After all, it's the SHAREHOLDERS' money, not the union's, and certainly not his. Just taking the principle to its logical conclusion . . .

[MaineDem]

7. Now that just makes too much sense

That's the logical action, of course.

[losdiablosgato]

9. I agree, most of the top executives of any company should get paid only if

The company is profitable. Ford started doing this a while back and they started to show a profit. You will find it hard to be profitable if your workers are not on board with it. Treat them fairly and give them a stake in the success and they become the most important assest in your success.

[losdiablosgato]

8. My Grandfather was union and then management

He sat on both sides of the table. He told me something that I will never forget. "Unions don't organize a plant the managers do. If you treat your workers fairly, the way you want to be treated. Pay a fair wage. But demand a fair days work. You will not have much problem with the union."

[Jensen]

10. Your Grandfather is so right.....

but the new "corporate Amerika" run by the old plantation owners now called "republicans" are bound and determined to make us all slaves!

I hope the DNC takes a hold of this story on UAL pensions and what can & will happen to us, the slaves, if Social Security is touched by the * privatization!