United Ginger Beers 37% pay claim
 

Caught a quick glimpse on the news tape at the bottom of the CNN screen that said United Airlines mechanics had turned down a 37% pay offer and will strike next week. Is this correct? What's wrong with the offer? There's obviously a hidden bug in the contract, so what do the rest of us watch out for?

**********************************. .Through difficulties to the cinema

Just listened to a radio program where a Union Offical presented their reasons.

(1) We have had a 7 year wage freeze.. .(2) The 37% increase only brings us up to the average wage of the largest 3 or 4 airlines.. .(3) There is language that says they must give back some of the 37% but does not say how much.

I assume his reason for stating (1) is to imply that (2) is not enough because the want to "make up" what they missed out on for 7 years.. .I cannot comment on (3). He stated that the language is very vague and said no more.

United is financially sick. But the union and members have over 7 years built up an emotional level that prevents them from looking at the present situation logically. United lost $3.8 Billion last year operationally.

[ 14 February 2002: Message edited by: polzin ]</p>

Another caller to the same radio program who stated he was a retired United manager stated a few interesting things.

He said that 7 years ago when the company offered an ESOP to the employees that the employees knew they would not get raises for 5 or 6 years. ESOP stands for Employee Stock Option Plan. Employees want this because unlike wages the stock is not taxed while it hopefully is increasing in price. When they quit or retire they can sell their stock and be taxed at capital gains of 18% max. So they were able to buy stock around $60 or $70 which split 4 for 1 and rose again to $60. Everyone was happy. Then 2 years ago the pilots got a 30% wage increase. The price of the stock started to decline. Im not stating that the pilot raise was the fault of the stock decline , Im just saying that it happened at approximately the same time. Now wages became important again!!

[ 14 February 2002: Message edited by: polzin ]</p>

Haven't had a pay rise in fifteen years and our Corporate Affairs people wouldn't know what a Stock Option was even if we were quoted on any stock market. So, nothing for me to watch out for - except when United goes tits up and its disappearance tightens the market up a bit of course... <img src="frown.gif" border="0">

**********************************. .Through difficulties to the cinema

Could not agree more.

The world economy is going down. If anyone does not believe it, May I remind you , it has happened before.

Try <a href="http://the-mechanic.com/mainbb.html" target="_blank">http://the-mechanic.com/mainbb.html</a> if you want to find out what the objections were to the Presidential Emergency Board contract recommendations. A lot of the mechanics feel that they shouldn't have to accept a flawed contract just to protect the pilot's wages, since this contract is the only contract at the airline with negotiated pay givebacks. The pay givebacks should be negotiated after the contract is voted in, like the rest of the unions on the property. While the pay increases look impressive initially, it is doubtful anyone will see the increase in their paychecks with the current contract langauge. It also does not help that the membership does not trust the union leadership, and the union leadership did not come out against the PEB recommendations until just before the vote, when they realized which way the wind was blowing with the mechanics.

This isn't Eastern Airlines yet, it is more like Northwest. Except there isn't going to be any strikes.

Oops, failed to mention in the last post that the current union representing the mechanics at United Airlines, the International Association of Machinists (IAM) wants United to fund an additional IAM pension plan for the mechanics, as a way to keep the mechanics from switching to a competing union.

Is it complicated enough yet?