International Federation of
Professional and Technical Engineers

E-ACTIVIST NEWS CENTER
Tell UAL Executives That Honesty and Fairness Matter

Responsible for both daily and long-term maintenance, the engineers, technicians and specialists at United Airlines make sure that the airline's aircraft fleet is flying safely and efficiently. These workers, part of United Airline's United Services division, perform their work while maintaining high quality, ensuring passenger safety and helping United Airlines recover from bankruptcy.

In 2004 alone, these engineers and related employees saved United Airlines some $167 million by identifying inefficiencies and showing management how they can perform the same level of quality work at less expense. These efforts demonstrate that it is United's workers that are saving the airline, not United's management.

Yet, instead of being rewarded and receiving encouragement for their efforts, workers have already faced year after year of salary and benefit cuts. Most outrageously, the unionized United Services workers who saved the airline $167 million have no contract after two years of collective bargaining.

The principle bargaining issues in dispute are market-based pay raises and the outsourcing. The Company's short-sighted, mean-spirited approach to these negotiations has cost UAL dearly. UAL now faces an attrition crisis among IFPTE represented employees that, according to UAL's chief negotiator, has reached "the point where Engineering's ability to perform its mission could be placed in jeopardy." There is only one solution - immediate, market-based pay raises for all IFPTE employees, and a fair, and sensible limitation on outsourcing.

Meanwhile, UAL's leadership has not only failed to bring the Company out of bankruptcy after nearly three years, they have found creative, nonproductive ways to spend the Company's limited cash resources. UAL has paid legal fees of over $53 million since declaring bankruptcy to one single law firm, and awarded top executives triple digit "Success Sharing" bonuses.

Sample Letter for Campaign

Subject: Fairness and Honesty to Workers, Creditors, Passengers and Vendors Counts!

Dear [ Decision Maker ] ,

I am very concerned about the salaries and "Success Sharing" bonuses paid to UAL's executive committee, especially CEO Glen Tilton. I am also very concerned about the legal fees charged by Kirkland and Ellis, the law firm retained to bring UAL, United Airlines' parent corporation, out of bankruptcy.

While many UAL employees have taken large cuts to their salaries and benefits, Glen Tilton's salary has actually gone up in each of the last 3 years. In fact, in 2004 Tilton received a triple digit "Success Sharing" bonus. This makes me wonder, "How does UAL measure success?" The company continues to hemorrhage money; the everyday faces of the company continually suffer; yet Tilton's salary increases. It doesn't add up.

The law firm retained by UAL to help it exit bankruptcy and save the company has taken larger bites from the ever-dwindling apple than Tilton. Kirkland and Ellis has charged over $53 million in legal fees and expenses since UAL filed for Chapter 11 relief December 9, 2002, yet their client, UAL, has failed to accomplish the goal of Chapter 11: submit a viable plan of reorganization. One Kirkland and Ellis attorney alone billed UAL $1.89 million in fees last year. It doesn't add up.

Meanwhile, in a concerted effort to help keep UAL alive, IFPTE union members - the engineers at United Airlines - have reportedly saved the company over $167 million last year. That works out to over $500,000 per IFPTE member. With an average annual salary of $55,400 UAL is getting almost ten-fold in return for every IFPTE represented employee. Yet these employees have consistently been forced to accept cuts in salary and benefits since UAL declared bankruptcy. It doesn't add up.

I am shocked that UAL ignores the efforts of these employees. They work hard to make the company more efficient and are repaid with below market salaries and benefit cuts. On the other hand the company loses money and the CEO gets salary increases. Please stop balancing the UAL budget on the backs of these employees. Give them a fair collective bargaining agreement and pay attention to their cost cutting ideas.

Sincerely,

Campaign Launched:
April 08, 2005


Background Information

The engineers, technologists and specialists at the bankrupt United Airlines have witnessed first hand how UAL management is driven by an interest in generating cost savings by slashing their salaries and benefits. In doing so, UAL management has reduced morale, created an exodus of knowledgeable workers, and done little to encourage its workforce to identify opportunities to save costs and improve quality.

Even though the engineers and related employees at United - members of the International Federation of Professional and Technical Engineers union (IFPTE) - have endured salary and benefit cuts, they stepped up and saved their airline over $167 million in the last year. In return, UAL management is terminating their pensions, thereby reducing the retirement income that loyal United employees are counting on. These very same workers are leaving UAL at an alarming rate for other industry jobs paying 20-40% more than UAL.

Furthermore, UAL management has unnecessarily delayed giving these engineers their first union contract, even though the engineers voted for a union in fall 2002 and have been negotiating with United ever since.

This campaign is a response to UAL management's failure to produce real cost savings, deal fairly with the workers who are helping the airline recover from bankruptcy and improve the quality and the image of the airline. This campaign was created to voice the concerns of engineers, technicians and specialists represented by the International Federation of Professional and Technical Engineers (IFPTE), an AFL-CIO affiliated union.