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AFA-CWA Demands United Keep Promise to Retirees
AFA-CWA has been fighting back against United Airline's effort to renege on its pledge to protect the retiree health benefits of 2,500 flight attendants who retired before July 1, 2003.
Hundreds of flight attendants agreed to early retirement because of the airline's commitment not to increase their health care costs. But United has sought to use the bankruptcy court procedure to force retired flight attendants to pay as much as $650 a month - more than 10 times what they now pay - just to continue their health care.
An independent examiner was appointed by the bankruptcy judge to investigate whether United had purposely misled flight attendants about the security of their benefits. While no outright fraud was found, United's Chief Financial Officer admitted that the airline was likely to seek the additional changes to retiree health through the bankruptcy court process.
United had sought - and received - $2.56 billion in annual concessions from employees as part of its plan to emerge from bankruptcy. Greg Davidowitch, president of the United AFA-CWA master executive council, said it was wrong for United senior management to conceal vital information "while thousands of employees made the difficult decision to end their careers."
Flight attendants have been leafleting at a number of airports, including Washington Dulles, Seattle, Chicago, Newark, N.J., Oakland, San Francisco and San Jose, Calif. and others, calling on United to keep its promise to retirees. Letters from thousands of flight attendants were delivered to United executives.
Davidowitch also pointed out that the recent passage of the Pension Stability Act, which will help secure the pensions of thousands of flight attendants, airline industry workers and others, means United now can abandon its attempts to further cut flight attendants' retiree health benefits.
This measure provides temporary relief for employers by allowing for deferred contributions over the next two years. This assistance is especially critical for airlines and will produce a deferred savings of about $1.6 billion over that period for the airline industry.
Hundreds of flight attendants agreed to early retirement because of the airline's commitment not to increase their health care costs. But United has sought to use the bankruptcy court procedure to force retired flight attendants to pay as much as $650 a month - more than 10 times what they now pay - just to continue their health care.
An independent examiner was appointed by the bankruptcy judge to investigate whether United had purposely misled flight attendants about the security of their benefits. While no outright fraud was found, United's Chief Financial Officer admitted that the airline was likely to seek the additional changes to retiree health through the bankruptcy court process.
United had sought - and received - $2.56 billion in annual concessions from employees as part of its plan to emerge from bankruptcy. Greg Davidowitch, president of the United AFA-CWA master executive council, said it was wrong for United senior management to conceal vital information "while thousands of employees made the difficult decision to end their careers."
Flight attendants have been leafleting at a number of airports, including Washington Dulles, Seattle, Chicago, Newark, N.J., Oakland, San Francisco and San Jose, Calif. and others, calling on United to keep its promise to retirees. Letters from thousands of flight attendants were delivered to United executives.
Davidowitch also pointed out that the recent passage of the Pension Stability Act, which will help secure the pensions of thousands of flight attendants, airline industry workers and others, means United now can abandon its attempts to further cut flight attendants' retiree health benefits.
This measure provides temporary relief for employers by allowing for deferred contributions over the next two years. This assistance is especially critical for airlines and will produce a deferred savings of about $1.6 billion over that period for the airline industry.