CO United Airlines
October 23, 2001

 

By Hand Delivery

Board of Directors
UAL Corporation
World Headquarters
1200 East Algonquin Road
Elk Grove Township, Illinois 60007

Dear Members of the Board:

We live in challenging times.  The very fabric of our country has been, and continues to be, challenged by terrorists whose callous disregard for human life has shattered the dreams of countless numbers of families and left deep scars among all of us that will never heal.  Our economy, already reeling before September 11th, reflects the uncertainties and anxieties of our citizenry. As this Board knows, these challenges have hit the airline industry especially hard, both in terms of the financial losses that the carriers have experienced and in terms of the extraordinary dislocation and economic hardship suffered by the thousands upon thousands of employees who have lost their jobs in recent weeks.

We are, no doubt, at a crossroads.  The weak will dwell on negatives, counsel defeat and never rise to face the challenges that confront us.  The strong will balance their understanding and analyses of reality with the type of optimism required in order to reverse the downward trends reflected in today's economy.  Even more important, the strong will lead.

As President of the International Association of Machinists and Aerospace Workers, AFL-CIO, and as representative of more than 40,000 current or recently laid-off employees of United Airlines, it is apparent to me that UAL and United Airlines suffer from a woeful lack of strong senior leadership.

If UAL and United Airlines had strong leadership:
 


The Chairman's October 17th letter, itself, raises an extraordinary number of profound issues concerning UAL's current leadership.  We trust that the Board will demand that Chairman Goodwin answer, at the very minimum, the following questions:
 


On October 17th, I responded to Jim Goodwin's letter by echoing what I have heard throughout the United system. I stated then, and reiterate now, that United Airlines will continue to fly tomorrow, next month and next year.  It will continue to deliver passengers safely, in comfort and on schedule.  There are nearly 100,000 United Airlines employees who will see that it does exactly that.

It is apparent that Chairman Goodwin has lost the confidence of the constituencies to which the UAL Board is responsible.  The public shareholders have expressed their dismay, moving the stock price to historic lows.  Employee-shareholders wake up each day to the grim reality that the tangible economic sacrifices that they made in the past and continue to make have come to naught.  Employees in and out of the ESOP have called for Goodwin's resignation or removal.  Perhaps it is only United's competitors who favor Mr. Goodwin's continued stewardship.

At this juncture, it is incumbent upon the Board of Directors to take decisive action.  On behalf of the IAM, I call upon the Board of Directors to:
 


Now is not the time to engage in lengthy, public debates.  Now is not the time for self-serving rhetoric designed to prop up one interest group at the expense of other interest groups. Now is the time for action.  There is no question but that this Board will be judged by the manner in which it responds to the challenges currently facing United Airlines.  Your constituents demand and deserve nothing less than decisive action to select new management leadership for the airline, to restore the public's confidence in the underlying strength of this franchise and to demonstrate to the financial community that last week's statements of gloom do not symbolize the manner in which this Board intends to respond to today's challenges.

I look forward to prompt action by the Board.

Sincerely yours,
 
 

R. Thomas Buffenbarger
INTERNATIONAL PRESIDENT

 

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