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FA's to Strike UAL on 7/1/05?

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Can't open the article, its a subscription.
 
It open for me without a subscription, but I will cut and paste it from the Chicago Tribune



Flight attendants at United threaten Friday strike

By Mark Skertic
Tribune staff reporter
Published June 30, 2005



United Airlines flight attendants could begin random walkouts Friday if the airline goes ahead with its decision to turn over their pension plan to the federal government.

"We're continuing our fight to save our plan," Sarah Nelson Dela Cruz, a spokeswoman for the flight attendants, said Wednesday. She said a strike campaign could be one of the tactics used to achieve that.

The announcement comes as airlines are preparing for the busy Independence Day weekend. If the union follows through with threats not to board aircraft, it could cripple United's system, because federal regulations stipulate that planes must have flight attendants.

The federal Pension Benefit Guaranty Corp. on Thursday will assume administration of the pension plan covering United's flight attendants and another covering management, administrative and public-contact workers.

Shedding the pension plan will change the terms of the union's contract with the airline, opening the door to a strike, Dela Cruz said.

In a message on the union's Web site, strike co-coordinator Ellen Boone urged members to "remain focused on our efforts to save our pensions and reject any assertions by the company or any other group that our actions are in vain."

A United spokeswoman said that "any actions to disrupt our operations would be illegal and would only punish our customers and employees."

"The AFA is the only union whose leadership has yet to negotiate a replacement plan for the employees they represent," said Jean Medina. "We are prepared to meet with the AFA at any time to negotiate a replacement pension plan, as we have with all the other unions."

Even the threat of a strike could hurt United, which lost $93 million in May.

"Some business travelers are going to say that if they're making these noises, I'm not booking," said Michael Boyd, president of the Boyd Group, a Colorado-based airline consultant.

"I'd question how much support this really has. Because most know that if they do this, they won't have to worry about their pensions. They won't have an airline.

"They have every reason to be angry," Boyd said of the flight attendants. "It's an awful thing that's happening to them. But the solution isn't to kill the airline."

The union has been fighting efforts to kill its pension plan on several fronts. It appealed an order by a U.S. bankruptcy judge in Chicago that allows the pension agency to assume control of its retirement plan.

It also has appealed a decision by a federal judge in Washington denying the union's request for an injunction to prevent the plans from being taken over by the agency.

The agency has taken over the ground workers' plan, but assumption of the pilots' pension program has been delayed by litigation over the date the move to the pension agency takes effect.

Last week, the U.S. House of Representatives approved an amendment that would prevent the agency from spending any money to take over United's pensions. However, its chances of becoming law are considered remote because of opposition in the Senate and by the White House.

The carrier announced late last year that it was unlikely to attract the financing it needs to leave bankruptcy protection if it remained saddled with its nearly $10 billion in unfunded pension obligations. Since reaching the deal on its pensions and obtaining other concessions from workers, United has said it expects to exit bankruptcy this fall.

Elk Grove Township-based United has said it plans to replace its company-sponsored plans with less expensive retirement benefits, such as a 401(k). Such plans often are less appealing to workers because the payout amount isn't guaranteed.

Most United workers and retirees opposed shifting their pensions. The day the government takes over the plans, workers stop accruing benefits. For many, that will mean thousands of dollars less in retirement than they had anticipated.

Those fears were somewhat lessened when United agreed to give its unions convertible notes that could be sold when the airline emerges from bankruptcy. The notes could be used to raise cash, which the unions plan to distribute to members to offset some of the pension losses.

The only group United has not reached such a deal with is the flight attendants. The prospect of issuing similar notes to the group has come up in discussions, but the union is focused on preserving its pensions, Dela Cruz said.

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If you haven't learned that nothing is going to happen at United, then I suggest you start paying attention. United could say that it's going to cut costs by flying with one wing, and the judge would okay it. And don't even get me started on CHAOS. Talk about all bark and no bite.....
 
What happened to the House (Congress) voting to NOT allow United to default on it's pension obligations? I know the Senate was looking at it, but did the PBGC already take it over?



Bye Bye--General Lee
 
As I understood it, it was only a vote to bar the PBGC from using government money to fund the pensions. They don't use government money anyway so it didn't have any effect.
 
Hardknock said:
They're pu$$ies. They won't strike.

The said the same thing when the pensions got dumped too.

What do you mean? The pilots were the ones that bent over . . . and over . . . and over. The F/A's are the only ones with stones.

But, no, they won't strike. They're just trying to get the Company to make a better offer.
 

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