November 13, 2007
Machinists Oppose United’s MPI & Maintenance Proposals
Printable Version
Letter to UAL CEO Glenn F. Tilton
Dear Sisters and Brothers,
There has been much speculation recently about United potentially selling
of its United Services and Mileage Plus divisions. The Machinists Union
has informed United CEO Glenn Tilton that we will strongly oppose the sale
of any UAL asset that would negatively impact the jobs of any of our
21,000 UAL members.
Some have proposed that assets of such a sale should be used to reinstate
the terminated pension plans now in the hands of the Pension Benefit
Guaranty Corporation (PBGC). After an exhaustive legal review of the
possibility that the PBGC could reinstate the pension plans, IAM
attorneys, in conjunction with the law firm Lowenstein Sandler, have
concluded that such a prospect is not possible. Although the PBGC has the
legal authority to reinstate a pension plan and return it to an employer,
they explicitly forfeited that right as part of their 2005 agreement with
United to terminate the plans.
Should United decide to sell assets that do not affect the jobs of
Machinist members, the IAM would insist the profits from any such sale be
used to improve the future pension benefits of United employees, including
those whose pensions were terminated in bankruptcy. The sale of any
valuable UAL assets should not disproportionately benefit financiers and
executives with outrageous stock grants and options. The IAM cannot allow
our members to suffer further hardships while executives, banks and major
shareholders stuff their already full pockets with cash.
United Airlines would not exist today if not for the sacrifice, hard work
and dedication of IAM members and other front-line workers. Employees have
suffered greatly because of the decisions of the same United executives
who rewarded themselves for bankrupting the company. In the event of a
sale of assets that would not impact the jobs of our members we expect IAM
members to share in the value of such a sale. United has been advised,
however, that the Machinists Union will vigorously oppose the sale of any
UAL asset that could impact our members’ jobs.
Fraternally,
S.R. (Randy) Canale
President & Directing
General Chairman
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