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Today, management announced a $250 million dividend to shareholders to be paid in January 2008, as approved by the UAL Board of Directors. Executives have forecast this action for some time. They have pushed through their personal agenda at your expense while ignoring serious concerns raised by nearly every stakeholder, industry trends and the company's financial position. Most of all, this is being done with utter disregard for the interests of employees.

Make no mistake, this action results in a cash windfall for the executives who have already richly rewarded themselves time and again regardless of the financial position of our airline or the views of the employees. Remember, on November 27, 2007 the Union Coalition made it clear that the corporation must recognize the sacrifices and contributions of its employees in any program that returns cash to shareholders. The executives at United Airlines issued a statement that failed to respond to the concerns of employees and instead attempted to confuse, distract and misguide the reader. To review, the management's statement said:

"All our stakeholders were impacted during our restructuring, including our shareholders who were wiped out. Our shareholders today expect a return on their investment."

The truth is that shareholders in the pre-bankrupt United Airlines were issued new stock in the same manner as every other constituency when United emerged from bankruptcy. It is disingenuous that management would point to an expectation of a return for shareholder investment under the guise that somehow shareholders were harmed more than employees who lost their pensions, their pay and continue to suffer the effects of the bankruptcy in both our professional and personal lives everyday.

Their statement continued:

"Our employees benefited from $2 billion in equity and notes at exit, and they share in our success when we are profitable. Every time we pay down debt, reduce our costs and improve profitability, it is a direct benefit to employees, who receive 15 percent of our profits, more than $100 million so far this year."

The truth again is that employees were treated no differently than any other unsecured creditor upon United's emergence from bankruptcy. The difference is we continue to work and live under concessions forced during bankruptcy. Further, any time an employee gets a supposed return on United's success, executives are getting an even bigger return on top of their renegotiated compensation packages. Just take a look at your "success sharing" check and compare it to Tilton's success sharing bonus as an example of that.

Their statement concludes:

"To suggest that we should increase our costs in an environment of $90 fuel is ludicrous."

The truth is that this statement makes "Ludicrous" the middle name of oil-man Tilton since according to the New York Times United Airlines currently has 18 percent of its fuel needs hedged at a price cap of $93 with no hedging for 2008-2010. Meanwhile, Southwest is hedged for 90% of fuel needs at a price cap of $51 today. Southwest holds that price cap through 2009 for the majority of its fuel needs and secured a quarter of its fuel needs at a $63 cap for 2010. Management's statement on its face is ridiculous because you can't talk about the increase in fuel costs without talking about the increase in fares which have effectively passed fuel costs directly onto the traveling public.

Shareholder "initiatives" that are anti-worker are not in the best interests of United Airlines. They are nothing more than an executive induced plan to enrich themselves at the expense of the working women and men of United Airlines. How could it be a "good thing" to pay cash to shareholders but "ludicrous" to pay the same cash to employees? What's ludicrous is that Flight Attendants and other employees who are responsible for turning our airline around continue to suffer fatiguing work schedules, paying utility bills with credit cards, losing homes and experiencing retirement insecurity. Is it right that we are feeling the loss of time with our families so that Glenn Tilton and his suite of executives can pay our cash to themselves and shareholders?

The actions of current executives are absurd. They have renegotiated excessive executive compensation packages for themselves. They have renegotiated their agreements with lenders. Earlier this week J.P. Morgan and Citigroup rejected management's negotiations offer to pay down $350 million in debt. But subsequently the lenders approved an agreement for United to pay $500 million in debt. Management had the ability to "pay" for that agreement. What are they going to do with the money saved by paying down debt? If they have the ability to enter negotiations for their own Contracts, if they have the ability to enter negotiations with lenders, if they have the ability to negotiate with shareholders and give "excess cash" to them – another management bonus - then they have the ability to enter negotiations with us.

Management's actions are not only absurd, ridiculous and ludicrous; they are shameless; they are reckless; they are irresponsible. Executives and the UAL Board of Directors are telling us that they value short-term shareholder returns over anything else – over stronger motivation and engagement, over a better customer experience and over the long-term health of our Company. Their payout undercuts the real gains that shareholders could make. The best shareholder initiative would be one that invests in the employees. There can be no mistaking where we stand. By their actions today this management has repudiated any pretense of working in partnership with its employees to distinguish United Airlines as a premier airline.

I know you're fed up. We are all fed up with the actions of the executives at United Airlines. And, we are not alone. While discussing today's events with the leadership of the International Association of Machinists and Aerospace Workers (IAM) and the Air Line Pilots Association (ALPA) it is clear management's action approved by the UAL Board of Directors, dismisses the workers of United Airlines and may be the straw that breaks the proverbial camel's back. Management has made it clear to all employees that any interest you have in forging a decent career at United is simply "ludicrous." No employee group is going to take that lying down. Tilton's continued assault on us will only serve to galvanize our resolve to rebuild our careers.

The executives at United Airlines are nothing more than charlatans, sweetening the pot to flip our airline like unscrupulous real estate agents. Over 1200 Flight Attendants have publicly protested the actions of current management at events around the system. In the coming days, you have the opportunity to join informational picketing and other Flight Attendant "initiatives." We've heard you loud and clear: you want action and you want it now. Together with our colleagues on the front lines we are a powerful force for the right change at United Airlines.

In Solidarity,

Greg Davidowitch, President
United Master Executive Council