So you think United Airlines Mechanics will Strike?

Travelin' Man · 01-22-2002, 11:51 AM

Could you blame them?

Management lied to them back in the 90's and promised them the sky. The union eaders were stupid enough to go along, and now when it is time to pay up, the piggy bank is empty. No worry though, Wolf and Goodwin have their million dollar mansions and more stuffed away in their piggy banks.

It is too bad that in the end the employees of UAL got shafted while upper management took advantage of their postions and walked away with millions. It will be years before UAL will be profitable again, and if they come close, they will hire Arthur Anderson as their accountants to turn their profits into a loss. What chaffes me is that UAL crys that they are not making any money and can't afford to give their mechanics a raise, but they go out and spend several billion dollars on a corporate jet business Avolar! What is up with that? And to think of the wasted billions spent on that US Airways merger, that would make me sick if I were a UAL employee.

So why should the employees accept nothing short of a huge pay raise with cash in hand? They got duped once, but not again. This could very well be the straw that breaks the camels back and thrusts UAL into BK court.

hernan · 01-22-2002, 02:45 PM

Strike.strike,strike,strike,strike!

Scott · 01-22-2002, 02:56 PM

Not a chance in hell. All T-man says is true, though I doubt either party will chance a trip to oblivion. Most likely a compromise will allow a significant raise this year with a step-increase to parity.
Significantly though, Creighton (new CEO) is beating the "concession" mantra via employee newsline, and aims an arrow directly at the pilots. To paraphrase, he calls for givebacks commensurate with gains made in the last contract. Not sure where that is headed, though time is running short.....

Ming Lee · 01-22-2002, 04:29 PM

Most likely Mr. President will break the strike and make both parties go to the negotiation table.

Travelin' Man · 01-22-2002, 05:58 PM

UAL Management Strategy

OK - let's get the pilots to agree to give back some of their wages so the planes they fly on are in good shape. Whatever you do, keep spending billions of dollars on Avolar. And make sure most of that money is spent on aircraft that is build overseas, so as not to give any American aerospace companies any business.

Call Bush and make sure the Federal Aid check is in the mail and use the proceeds to pay our 2001 year end bonuses. Give more FF miles to our customers to bribe them back into our seats, but make sure we reduce the number of seats available for FF redemption.

UALsprtofSEA2 · 01-22-2002, 09:33 PM

Yes, the upper bigwigs walked away with millions in their pockets.

Avolar and the US airways mistake is costing United millions not billions.

Also, one of the biggest mistakes made was giving the bank to the pilots. We lost almost all of our mail contracts do to the pilots playing their games to get every penny they could get from the company. After loosing about 79% of the mail contracts and loosing many business contracts with large companies the pilots got almost every penny from United. Since that happened its been down hill ever since!!!!!!!

And not to be left out was the many raises given to Management themselves.

Scott

01-23-2002, 09:42 AM

The union woes at UA are not only running their company into the ground, they are putting the industry as a whole into a precarious position. Wages are out of control and unless compensation is revamped, we may be looking at three US carriers in the future because all the others imploded from cost escalation.

First and foremost, I abhore the behavior of Wolf. The fact that he lined his pocket at both UA and US is a travesty. However, that does not mean that every non-union "managment" employee, be it at UA or any other carrier, is making a daily trip to the bank while riding the backs of the unions. Don't confuse Enronesque CEO Wolf with the many hard working analysts, managers, etc. Only a few are getting rich; the pilots and the top executives. Everyone else is trying to make a dollar and get by.

As for the mechanics, UA is merely shifting costs from one group to another. To pay for the mechanics, UA will have to rob from another labor group, and what will happen then? The fundamental that the labor groups fail to recognize is that costs are out of control and if you squeeze the rock too hard it's going to crumble and there will be nothing left.

Instead of asking for ludicrous wages, why not go performance based? Everyone has a rational base salary, payable in good and bad financial times. On top of that, UA (or any other carrier) should agree to set aside a certain percent of operating profits (say 35%) and give this money back to the employees in times of prosperity. When financial times are poor, the bonuses disappear, costs shrink in line with yield declines, and the company remains afloat and doesn't have to seek government handouts to survive.

The sooner this industry realizes that wages are spinning out of control, the sooner this ship can be pointed in the right direction and stability will return.

Just my thoughts...... don't mean to step on anyone else's views.

Sentinel Chicken · 01-23-2002, 10:44 AM

You'd think folks would have remembered the fiery tenure of Charlie Bryan at Eastern Airlines before it self-destructed. Not the Bryan was the proximate cause of Eastern's collapse- that was all the Frank Lorenzo Dog and Pony Show. Bryan was just a bucket of Jet-A tossed onto the fire.

Wingman · 01-23-2002, 10:57 AM

If United really wants to shut down that badly, then let the mechanics strike.

Sentinel Chicken · 01-23-2002, 11:23 AM

Latest news off the wire is that management has approved a 37% pay raise for the mechanics at United. The union will vote on the management's proposal- if approved, no strike.

However, the management approved the pay raise with "reservations".

01-23-2002, 11:39 AM

Quote:

You'd think folks would have remembered the fiery tenure of Charlie Bryan at Eastern Airlines before it self-destructed

Good one Doc. You'd think the way the unions are pounding the table and potentially running the company into the ground that Bryan is somehow behind all of this.

"Reservations" is probably an understatement. They're probably sitting in their office wondering how much more money they can lose per day before Ch. 11 must take place. I can't wait to listen to their Feb. 1 earnings conference call. The analysts are going to jump all over them.

Sentinel Chicken · 01-23-2002, 12:12 PM

Yep, unfortunately they can't use bankruptcy to abrogate the union contracts anymore. Congress very nicely plugged that loophole after Frankie went through Continental with a machete. Gordon Bethune has repeatedly voiced concerns about the cost structures at United and USAirways..of course, Gordon has a reputation for openly saying what other airline execs think but are afraid to say.

01-23-2002, 12:39 PM

Yeah, my boss is the brash one. Look how he was the first one to address federal intervention following 9/11. He sees the writing on the wall and knows that unless UA, DL, and AA don't do something with their labor wage rates CO will be in the same boat when it comes time to negotiate our contracts. I somehow doubt ALPA will go easy on us just because we're not a Big Three carrier.

01-22-2002, 11:51 AM	#1
Travelin' Man Insane Collector Join Date: May 2000 Location: Aspen USA!!! Posts: 1,919	So you think United Airlines Mechanics will Strike? Could you blame them? Management lied to them back in the 90's and promised them the sky. The union eaders were stupid enough to go along, and now when it is time to pay up, the piggy bank is empty. No worry though, Wolf and Goodwin have their million dollar mansions and more stuffed away in their piggy banks. It is too bad that in the end the employees of UAL got shafted while upper management took advantage of their postions and walked away with millions. It will be years before UAL will be profitable again, and if they come close, they will hire Arthur Anderson as their accountants to turn their profits into a loss. What chaffes me is that UAL crys that they are not making any money and can't afford to give their mechanics a raise, but they go out and spend several billion dollars on a corporate jet business Avolar! What is up with that? And to think of the wasted billions spent on that US Airways merger, that would make me sick if I were a UAL employee. So why should the employees accept nothing short of a huge pay raise with cash in hand? They got duped once, but not again. This could very well be the straw that breaks the camels back and thrusts UAL into BK court.

01-22-2002, 02:45 PM	#2
hernan Senior Collector Join Date: Mar 2001 Location: CAROLINA,PUERTO RICO Age: 42 Posts: 426	Strike.strike,strike,strike,strike! __________________ FLY SOUTHWEST. THE ONLY WAY TO FLY ! COLLECT STAR JETS. THE BEST MODELS!

01-22-2002, 02:56 PM	#3
Scott Insane Collector Join Date: Mar 2000 Location: Escondido, Ca. USA Age: 49 Posts: 2,763	Not a chance in hell. All T-man says is true, though I doubt either party will chance a trip to oblivion. Most likely a compromise will allow a significant raise this year with a step-increase to parity. Significantly though, Creighton (new CEO) is beating the "concession" mantra via employee newsline, and aims an arrow directly at the pilots. To paraphrase, he calls for givebacks commensurate with gains made in the last contract. Not sure where that is headed, though time is running short..... __________________ Fly the Friendly Skies of United uniTED takes wing Feb 12, 2004

01-23-2002, 09:42 AM	#7
CAL 757-300 Guest Posts: n/a	UA Unions The union woes at UA are not only running their company into the ground, they are putting the industry as a whole into a precarious position. Wages are out of control and unless compensation is revamped, we may be looking at three US carriers in the future because all the others imploded from cost escalation. First and foremost, I abhore the behavior of Wolf. The fact that he lined his pocket at both UA and US is a travesty. However, that does not mean that every non-union "managment" employee, be it at UA or any other carrier, is making a daily trip to the bank while riding the backs of the unions. Don't confuse Enronesque CEO Wolf with the many hard working analysts, managers, etc. Only a few are getting rich; the pilots and the top executives. Everyone else is trying to make a dollar and get by. As for the mechanics, UA is merely shifting costs from one group to another. To pay for the mechanics, UA will have to rob from another labor group, and what will happen then? The fundamental that the labor groups fail to recognize is that costs are out of control and if you squeeze the rock too hard it's going to crumble and there will be nothing left. Instead of asking for ludicrous wages, why not go performance based? Everyone has a rational base salary, payable in good and bad financial times. On top of that, UA (or any other carrier) should agree to set aside a certain percent of operating profits (say 35%) and give this money back to the employees in times of prosperity. When financial times are poor, the bonuses disappear, costs shrink in line with yield declines, and the company remains afloat and doesn't have to seek government handouts to survive. The sooner this industry realizes that wages are spinning out of control, the sooner this ship can be pointed in the right direction and stability will return. Just my thoughts...... don't mean to step on anyone else's views.

01-23-2002, 10:44 AM	#8
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	You'd think folks would have remembered the fiery tenure of Charlie Bryan at Eastern Airlines before it self-destructed. Not the Bryan was the proximate cause of Eastern's collapse- that was all the Frank Lorenzo Dog and Pony Show. Bryan was just a bucket of Jet-A tossed onto the fire. __________________ *Piss on noise abatement!*

01-22-2002, 04:29 PM	#4
Ming Lee Collector Join Date: Jul 2000 Posts: 63	Most likely Mr. President will break the strike and make both parties go to the negotiation table.

01-22-2002, 05:58 PM	#5
Travelin' Man Insane Collector Join Date: May 2000 Location: Aspen USA!!! Posts: 1,919	UAL Management Strategy OK - let's get the pilots to agree to give back some of their wages so the planes they fly on are in good shape. Whatever you do, keep spending billions of dollars on Avolar. And make sure most of that money is spent on aircraft that is build overseas, so as not to give any American aerospace companies any business. Call Bush and make sure the Federal Aid check is in the mail and use the proceeds to pay our 2001 year end bonuses. Give more FF miles to our customers to bribe them back into our seats, but make sure we reduce the number of seats available for FF redemption.

01-22-2002, 09:33 PM	#6
UALsprtofSEA2 Master Collector Join Date: May 2000 Location: Chicago Age: 45 Posts: 894	Yes, the upper bigwigs walked away with millions in their pockets. Avolar and the US airways mistake is costing United millions not billions. Also, one of the biggest mistakes made was giving the bank to the pilots. We lost almost all of our mail contracts do to the pilots playing their games to get every penny they could get from the company. After loosing about 79% of the mail contracts and loosing many business contracts with large companies the pilots got almost every penny from United. Since that happened its been down hill ever since!!!!!!! And not to be left out was the many raises given to Management themselves. Scott

01-23-2002, 10:57 AM	#9
Wingman Registered User Join Date: Aug 2000 Location: Bangor, ME Age: 34 Posts: 429	If United really wants to shut down that badly, then let the mechanics strike.

01-23-2002, 11:23 AM	#10
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	Latest news off the wire is that management has approved a 37% pay raise for the mechanics at United. The union will vote on the management's proposal- if approved, no strike. However, the management approved the pay raise with "reservations". __________________ *Piss on noise abatement!*

01-23-2002, 12:12 PM	#12
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	Yep, unfortunately they can't use bankruptcy to abrogate the union contracts anymore. Congress very nicely plugged that loophole after Frankie went through Continental with a machete. Gordon Bethune has repeatedly voiced concerns about the cost structures at United and USAirways..of course, Gordon has a reputation for openly saying what other airline execs think but are afraid to say. __________________ *Piss on noise abatement!*

01-23-2002, 12:39 PM	#13
CAL 757-300 Guest Posts: n/a	Gordo Yeah, my boss is the brash one. Look how he was the first one to address federal intervention following 9/11. He sees the writing on the wall and knows that unless UA, DL, and AA don't do something with their labor wage rates CO will be in the same boat when it comes time to negotiate our contracts. I somehow doubt ALPA will go easy on us just because we're not a Big Three carrier.

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