This month United Airlines will begin talks with unions representing 88% of United’s workforce, as United hopes to “negotiate” contracts for the first time since 2006. Most unions are expected to ask for higher pay, a make-up for the pay lost in previous years during the restructuring. However United is expected to cringe, and management will have to control the increase in pay closely to weather the economic and demand struggle airlines are facing.
You might recall that United emerged from bankruptcy on the 1st of February in 2006, ending the 4-year / longest-airline-bankruptcy in history. It was airline bankruptcies and the events of September 11 that shook loose money out of airlines’ pockets, giving little room for carriers to make payroll. Over the past 15 years, salaries and benefits for working groups that support airlines declined dramatically. Many working groups, such as pilots, have seen their schedules double and their salaries cut in half. Yet it wasn’t until a few years ago that most airlines began churning up profits and in turn began raising salaries once again. However United has been caught in the middle of a bankruptcy and has struggled to make a profit since the time preceding 9/11.
“It has been nearly a decade since our members had an opportunity to propose changes to their collective bargaining agreements,” said Rich Delaney, president of a Machinists local for 16,000 employees, including ramp workers. “The challenge we face in these negotiations is bridging a canyon of distrust.”- Bloomberg.
Distrust! Have I mentioned Glenn Tilton? … the Chairman, President, and CEO of United. Pilots of United have set up a website dedicated to removing Mr. Tilton from office. I think United still has yet to learn that if your own staff is not happy with you, your airline is not going to get very far. It brings back memories of the Continental bankruptcy days in the early 90′s, where employees tore off their Continental logos and ensignias from shirts & jackets because they were ashamed of who they worked for – this, of course, was prior to Gordon Bethune’s arrival. Mr. Tilton brings the fine (do note my sarcasm) spirit of success with the line: “Shared Sacrifices, Shared Rewards,” after vowing to cut salaries and benefits and restructuring. I don’t like to rave on and criticize, but something has got to be done about United.
