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April 9, 2007




RE: United Airlines CEO and executive compensation
Dear Representative:
The alarming growth in wage disparity between executives and workers in this country is in critical need
of Congressional attention. I call your attention to a gross example of this disparity that is emerging at
United Airlines, where I represent 17,000 Flight Attendants in the Association of Flight Attendants-CWA.
United Airlines CEO Glenn Tilton received $39.7 million in 2006, including salary, bonus, incentives,
perks, above-market returns on deferred compensation and the estimated value of stock options and
awards granted during the year. At the same time, United Flight Attendants continue to experience lifechanging
wage, healthcare and work rule concessions, along with termination of their pension plan.
Incredibly, Tilton’s 2006 compensation exceeded the airline’s entire annual profit of $25 million reported
by United’s parent company UAL, Inc (UAL).
The United CEO and senior executive compensation package outpaced other corporate executive
compensation by large margins. The Corporate Library, a corporate governance watchdog group,
surveyed the proxy filings of 1,000 large U.S. companies and found that overall CEO compensation in
increased at a rate of 16% in 2005 and 9.29% in 2006. By comparison, UAL Securities and Exchange
Commission filings show Tilton and his suite of senior executives received increases in compensation
equaling 40% on a year-over-year basis, as well as bonuses throughout the company’s bankruptcy.
This troubling trend continues post-bankruptcy, in addition to generous stock rewards. The Institute for
Policy Studies – United for a Fair Economy, reported in 2006 that executive wages were 411 times the
average pay of workers. At United, Mr. Tilton’s executive compensation is 1,000 times what a Flight
Attendant earns on average at the top of the pay scale, or over 2,000 the pay of a new hire.
The airline industry is expected to report record profits in 2007 after a traditionally slow first quarter.
The Air Transport Association (ATA), an airline trade group, conservatively forecast industry annual
profits to be $4 billion this year, and some analysts predict that the industry could top the record profits
of approximately $5.4 billion set in 1999. The dedication, sweat and sacrifice of all United employees
have led United Airlines on the road toward sustained profitability. Shared sacrifice must now equal
shared rewards. We are insisting that United Airlines executives uphold this premise promulgated by
them during the course of bankruptcy and share the financial rewards management currently enjoys.
The House Financial Services Committee proposed legislation (H.R. 1257) would let shareholders
register disapproval of executive pay packages without the government directly regulating pay. This
legislation is a step in the right direction and we encourage you to support it. We also believe that more
must be done to provide solutions for workers who are suffering at the hands of executive greed.
We call on Congress to act and end the disparity that exists between worker and executive
compensation.
Sincerely,
Greg Davidowitch, President
United Master Executive Council

Now there is a reliable source of information. :laugh:
 
Well, I hate to tell ya that those apples are causing the oranges to go bankrupt because none of them will charge the true costs to cover expenses and make a profit.
Keep in mind that both groups agreed to the CBA. You make it sound like the union just did the old grab and run.
I understand you don't like unions...but unfortunatly in this and many other industries they are a much needed protection from greedy groups that would have them working for min wage.

You can't compare large international operators using multiple fleet types to LCCs with single fleet types using small aircraft. It's apples and oranges. Legacy carriers were for the most part are profitable internationally but the wages and compensation in the CBA carry over into the domestic markets. This doesn't include the expense of operating large aircraft, CAT 3 certification, training and maintenance expense. That is why legacy carriers have given up on domestic and are concentrating on the profitable international markets. Apples and oranges.

Oh, and in the late 90's it was grab and run, times were good. When times got bad, the unions put their heads in the sand and dragged the carriers down with them.

Big picture stuff, I know.. it's hard for many pilots (not all) to comprehend.
 
B19, this is the fractional threads. The fractional industry is NOT the same as the airline industry. Other than the fact that airlines and the frax both fly airplanes, their business models and operations are worlds apart. If you want to rant about airline unions, I suggest you post on the Majors and the LCC/Nationals threads.

Where are the moderators when you really need them?
 
United unions protest 'excessive' executive pay


By Marilyn Adams, USA TODAY
In a rare joint protest, five unions at United Airlines issued a statement Tuesday complaining of low pay, short staffing and excessive executive compensation at the No. 2 airline.
The protest from unions representing 30,000 United employees came one day after the Chicago-based carrier reported 2006 executive compensation in a securities filing, and 14 months after it exited Chapter 11 bankruptcy reorganization.
United said its top five executives received $25.7 million in the form of cash, stock or exercisable stock options. Of that, CEO Glenn Tilton received $9.3 million, the filing said.
"Throughout United's bankruptcy, 'shared sacrifice' was the mantra employees heard from upper management," the unions' statement said. "Executives have failed to lead by example, as employees have watched these individuals collect millions of dollars worth of stock, pay raises and bonuses."
United's labor leaders say cost cuts made during the airline's three-year stay in bankruptcy are hurting customer service.
FIND MORE STORIES IN: United Airlines | Air Line Pilots Association | Chicago-based | International Association of Machinists | Jean Medina | CEO Glenn Tilton
Last year, United drew more complaints for every 100,000 passengers than any other airline, according to the U.S. Department of Transportation.
"Many of our airports are severely understaffed in terms of gate agents, ramp workers and support staff," said Steve Derebey, Air Line Pilots Association spokesman.
The rank-and-file are still working under contracts negotiated during bankruptcy in which they took deep pay cuts.
United said Tuesday that its top executives took home less than what was reported because United's shares aren't worth what was estimated, and executives did not exercise all the options they could. United spokeswoman Jean Medina said Tilton received about half the $9.3 million reported.
Union leaders representing United's pilots, flight attendants, mechanics and other workers called on United's management to beef up profit-sharing, negotiate richer labor contracts sooner than scheduled and hire more help to relieve short staffing.
During bankruptcy, United slashed $7 billion from annual expenses. It shed 20,000 employees, 100 jetliners, $8 billion in debt and all its pension plans. After exiting bankruptcy on Feb. 1, 2006, United earned a $25 million profit for the rest of 2006.
United's largest union, the International Association of Machinists, representing customer service workers and others, was not part of Tuesday's statement and was expected to issue its own.
Medina said United has been working with the unions to address issues that concern them. United recently agreed to start paying pilots for their time when their flights are canceled, for example.
She said the airline won't move up scheduled contract talks. She noted United's executive pay plan was approved by a majority of the bankruptcy creditors committee, which included union members
 
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By THE ASSOCIATED PRESS
Published: August 11, 2008
The union representing pilots at United Airlines urged the chief executive, Glenn F. Tilton, to resign Monday, accusing him of steering the carrier down a path to poor customer service, employee morale and financial performance.
Skip to next paragraph
air190.jpg
Charles Krupa/Associated Press
Glenn Tilton, United’s chief executive, was hired in 2002.



A spokeswoman for the airline, based in Chicago, did not immediately respond to an e-mail message seeking comment.
The pilots have stepped up criticism of United’s top executives, angry that they have not gotten additional compensation since their pay was reduced sharply during the company’s bankruptcy overhaul from 2002-6. Their pension was also terminated while the UAL Corporation, the parent of United Airlines, was under bankruptcy protection.
In a statement, the United chapter of the Air Line Pilots Association said United needs new leadership and it has started a Web site to draw attention to what it says have been Mr. Tilton’s failures since he took over in September 2002.
“Under Glenn Tilton’s tenure, United has gone from being the finest airline in the world, with the best route structure and safety record, to a shell of its former self,” said Steve Wallach, chairman of the pilots union’s executive committee. “He has had every opportunity to turn this company around, and tap the abilities of its first-class employees, but instead he has run it into the ground.”
The Transportation Department said last week that United had the second-worst on-time rate in June, with 59.3 percent of flights arriving at scheduled times. Over all, the nation’s airlines were on time more often in June compared with a year ago.
The United pilots union also cited a recent survey conducted by United showing that only 38 percent of United employees took pride in United, down 15 percentage points from 2006.
“This is not a personal attack on Glenn Tilton,” Mr. Wallach said. “These dismal numbers speak for themselves. They are a reflection of his inability to lead, his incompetence as a manager and his failure in virtually every category that can be measured. We have tried every conceivable way to convince him to invest in, and maximize the good will of, his employees. He has failed miserably.”
In March, United said it planned to ground as many as 20 airplanes, or 4 percent of its fleet, and further cut capacity in 2008 to soften the blow of soaring oil prices. At the time, United’s pilots criticized the plan, saying that “shrinking the airline to achieve profitability has been demonstrated to be a failed business practice.”


Any FLOPS pilot can relate to that last sentence!!!
 
B19, this is the fractional threads. The fractional industry is NOT the same as the airline industry. Other than the fact that airlines and the frax both fly airplanes, their business models and operations are worlds apart. If you want to rant about airline unions, I suggest you post on the Majors and the LCC/Nationals threads.

Where are the moderators when you really need them?

First, I don't rant... that's Dimeline's job.

I didn't start the direction of this thread in that direction.

You are dead wrong about the two business models being worlds apart. The revenue models are different, but operationally, they are in fact quite simular and require virtually the same infrastucture.

I reject your suggestion as complete garbage.
 
Hey DA19, revenue and profit are two different things

Without revenue there can be no profit.

I don't see you complaining about the United CBA taking up nearly 30% of the revenue there dimeline...

How's this sound, what's fair is fair, right?

Let's cut both Tilton's payroll by 50% and the pilot labor cost by half that.. let's say.... 25%.

Then, Tilton will only get $20 million, and there will be an additional $1.5 billion from the pilot side gone.

Now UAL will be profitable, won't it?

Drop in the bucket...
 
Power percieved=Power achieved

It might be a drop in the bucket (i do agree)
But the the CEO of yesterday, part of his job was to motovate employes, the CEO of today is doing nothing but screwing employes, while lining his own pocket.


Just because there is revenue, doesnt mean there is profit.

In 2006 Uniteds CEO made more money than the company made that year.
 
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First, I don't rant... that's Dimeline's job.

I didn't start the direction of this thread in that direction.

You are dead wrong about the two business models being worlds apart. The revenue models are different, but operationally, they are in fact quite simular and require virtually the same infrastucture.

I reject your suggestion as complete garbage.

That's Ok, Don. I reject everything you say as complete garbage, too.
 

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