December 12, 2005 - The Machinists Union today filed an objection in bankruptcy court to UAL Corporation’s Joint Plan of Reorganization. All IAM members at United Airlines are encouraged to read the objection to understand the greed-fest United executives are planning.
The IAM objects to confirmation of the Plan because it includes two vague, yet lavish incentive plans to reward United’s management and board of directors for their bankruptcy achievements. Any such reward is more properly shared by all the company’s stakeholders, all of whom (except top management) made huge sacrifices as part of this restructuring.
"This management team and board of directors should not be rewarded for the sacrifices made by employees," said District 141 President Randy Canale. "While United’s management and board were busy gutting the wages, pensions and benefits paid to IAM-represented employees, they were also devising a plan to enrich themselves with the savings."
The plans are offensive, in part, because they could potentially provide bonuses to CEO Glenn Tilton of more than $100 million. According to Fortune Magazine, Mr. Tilton is the highest compensated airline CEO in 2005 (up from the third highest paid airline CEO in 2004).
"It is grotesque that Mr. Tilton is poised to receive a huge bonus for his 'achievements' in United’s bankruptcy," said Canale. "Any success attributable to Mr. Tilton is a direct result of the substantial cost savings provided by IAM-represented employees and other constituencies. United Airlines’ employees are still struggling to deal with the effects of corporate mismanagement. At the same time, the executives who have kept the airline firmly entrenched in bankruptcy for three years are looking to gorge themselves on your concessions. This is simply unacceptable, and the IAM strongly objects to these provisions of United's Plan of Reorganization."
A hearing will be held on the IAM’s and other objections on January 18, 2006.
