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Asset Sale Proceeds Belong to Flight Attendants

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Source: AFA

Date: Oct 18, 2007

October 18, 2007

Ladies and Gentlemen:

It has been widely reported that the United Airlines Board of Directors has blessed Tilton's plan to post a sale sign on assets valued - on the high side - at $13 billion dollars.  Publicly management has identified United Services "Maintenance" and United Loyalty Services "Mileage Plus" as the two purported expendable assets. 

We have watched with growing concern as it has become public that current management and the UAL Board of Directors are considering the sale of key company assets.  Many question the wisdom of selling assets once deemed vital to a successful reorganization.  

During the course of the bankruptcy filed by UAL Corporation and its subsidiaries, thousands of workers lost their jobs, pensions, medical benefits, work rules and compensation based on representations by United executives and their attorneys that these cuts were necessary.  The potential sale of assets now under consideration belies the completeness and accuracy of the information provided by management to support their claims that these cuts were necessary.

If certain assets are not essential for the business of United Airlines then the proceeds of any such sale must be returned to the Flight Attendants, and proportionately to other workers, who were forced to sacrifice for the success of United Airlines.  The proceeds resulting from the sale of key assets rightfully belong to Flight Attendants and other workers.

Through a letter sent earlier this week to the UAL Board of Directors, on behalf of the 17,000 AFA-CWA members at United, the United Master Executive Council laid claim to a proportionate share of any and all proceeds United Airlines realizes as a result of "unlocking the value" of business units such as United Services and Mileage Plus or any other major asset which UAL determines to sell.

We call upon the Board of Directors of UAL, Inc. to direct current management to engage in meaningful negotiations to restore our wages, benefits and working conditions and to establish how United Airlines will allocate a proportionate share of the proceeds of any asset sale to the Flight Attendants.

In Solidarity,

Greg Davidowitch, President
United Master Executive Council

More President Letters >

 

 

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