STOCK QUOTES     More market data...

United attendants want executives ousted

By Melissa Allison
Chicago Tribune

E-mail this article Print this article Search archive Most read articles Most e-mailed articles

"We condemn United Airlines senior management for devising a business plan which, in addition to the termination of pension plans, continues the failed strategy of seeking further concessions from employees who have already sacrificed so much," said Greg Davidowitch, president of the union's master-executive council, in a statement.

The union's leadership unanimously passed a resolution to "take all necessary and appropriate legal steps to seek the replacement of senior management of United Airlines."

United has said it "likely" will terminate its four pension plans in an effort to attract financing to exit bankruptcy. It already missed a mid-July payment of $72 million toward three of the plans.

Yesterday the agency that insures pensions brought liens against three United subsidiaries not in bankruptcy to secure as much of that amount as possible.

"We're currently evaluating the Pension Benefit Guaranty Corp.'s actions to determine what, if any, response is appropriate," said United spokeswoman Jean Medina.

She said the carrier has not made a final decision about whether to terminate the pension plans.

A bankruptcy-court judge warned United less than two weeks ago that it needed to work more closely with employees and others in making such decisions.

But the Association of Flight Attendants said it has not seen enough of a change in United's behavior to warrant backing down. It is not certain what legal action the flight-attendants union will take, but it said in a court filing earlier this month that it anticipated joining another union's motion to appoint a trustee to lead United out of bankruptcy.

The court will hear that motion by the International Association of Machinists and Aerospace Workers on Sept. 17.

United said yesterday that the action by the flight-attendants union is "contrary" to the cooperation the company needs.

Copyright © 2004 The Seattle Times Company

E-mail this article

Print this article

Search archive

More business & technology headlines...