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United's Pilots Union Forms Strike Committee >UAUA
CHICAGO (AP)--The pilots union of UAL Corp.'s (UAUA) United Airlines will form a "strike preparation committee," a sign that there is mounting labor unrest at the nation's second-largest airline.
The Air Line Pilots Association has voted unanimously to start the committee even though the current contract for pilots and other union employees runs through 2009 and it can't legally strike until then.
The union's main reason for starting the committee is a response to what pilots see as a widening disparity between employee pay and management pay.
Union spokesman Herb Hunter said pilots have given up at least 40% of pay while executives received 40% pay raises in September.
"Somewhere, it seems to us, the notion of shared sacrifice has gone away," Hunter told the Chicago Tribune.
Hunter said the union isn't planning a strike yet, and the Tuesday vote to form the committee is a preparatory step to opening contract negotiations.
Officials from the Elk Grove Village, Ill.-based company said it won't reopen a contract reached just last year.
"Now is the time for us to focus on our customers, and that's what we're going to do," said United spokeswoman Jean Medina. "We worked very hard with ALPA to consensually and successfully negotiate the current contract. We look forward to doing the same when this agreement becomes amendable."
Though a potential strike is a long way from happening, analysts said unrest among pilots could create havoc. For example, in 2000 pilots didn't work overtime and caused numerous flight cancellations, according to Ray Neidl, an aviation analyst with Calyon Securities Inc.
He said the company can't afford to give back pay concessions workers allowed during its three-years in bankruptcy.
(END) Dow Jones Newswires
December 07, 2006 11:15 ET (16:15 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.- - 11 15 AM EST 12-07-06
CHICAGO (AP)--The pilots union of UAL Corp.'s (UAUA) United Airlines will form a "strike preparation committee," a sign that there is mounting labor unrest at the nation's second-largest airline.
The Air Line Pilots Association has voted unanimously to start the committee even though the current contract for pilots and other union employees runs through 2009 and it can't legally strike until then.
The union's main reason for starting the committee is a response to what pilots see as a widening disparity between employee pay and management pay.
Union spokesman Herb Hunter said pilots have given up at least 40% of pay while executives received 40% pay raises in September.
"Somewhere, it seems to us, the notion of shared sacrifice has gone away," Hunter told the Chicago Tribune.
Hunter said the union isn't planning a strike yet, and the Tuesday vote to form the committee is a preparatory step to opening contract negotiations.
Officials from the Elk Grove Village, Ill.-based company said it won't reopen a contract reached just last year.
"Now is the time for us to focus on our customers, and that's what we're going to do," said United spokeswoman Jean Medina. "We worked very hard with ALPA to consensually and successfully negotiate the current contract. We look forward to doing the same when this agreement becomes amendable."
Though a potential strike is a long way from happening, analysts said unrest among pilots could create havoc. For example, in 2000 pilots didn't work overtime and caused numerous flight cancellations, according to Ray Neidl, an aviation analyst with Calyon Securities Inc.
He said the company can't afford to give back pay concessions workers allowed during its three-years in bankruptcy.
(END) Dow Jones Newswires
December 07, 2006 11:15 ET (16:15 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.- - 11 15 AM EST 12-07-06
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