UAL Corp. (NYSE: UAL), the parent company of United Airlines, commented today on the ratification of an agreement on interim wage reductions by the Air Line Pilots Association (ALPA), the union representing Unitedå‘s pilots, the Transport Workers Union (TWU), representing Unitedå‘s meteorologists, and the Professional Airline Flight Control Association (PAFCA), representing Unitedå‘s dispatchers.
Glenn Tilton, chairman, president and chief executive officer of UAL, said, “ALPA’s, TWU’s and PAFCA’s ratifications are important steps forward as we work to transform United. We are grateful to the unions’ members for their support and for demonstrating that the people of this company are committed to making the tough choices and difficult sacrifices necessary for United to emerge from Chapter 11 as a more competitive business. We look forward to continued cooperation with all of our unions and employee groups as we work to reach consensual agreements that will help us redesign our business and compete more effectively in the long term.”
The wage reduction agreements were ratified by ALPA, TWU and PAFCA in conjunction with UAL’s filing of a conditional motion under Section 1113(c) of the Bankruptcy Code as part of the company’s Chapter 11 case. The results of the Association of Flight Attendants’ (AFA) vote on ratification of their interim wage reductions should be available shortly.
In addition, United has asked the court to impose interim wage reductions under Section 1113(e) of the Bankruptcy Code for employees represented by the International Association of Machinists and Aerospace Workers (IAM) District 141 and 141-M, because this union did not reach interim agreements on wage reductions with the company. The Court is expected to rule on UAL’s 1113(e) motion against the IAM by January 10, 2003. Pending Court approval of United’s motion, the interim relief will help the company meet the terms of its DIP financing and provide more time for negotiation of long-term wage and work rule changes between UAL and the unions.
United Airlines operates more than 1,700 flights a day on a route network that spans the globe. News releases and other information about United Airlines can be found at the company`s website at www.united.com