Union Questions Airline's Attempt to Cut Retiree Health
Benefits
Just as the
concessionary contract agreed to by United Airlines management last
spring finally arrived in the offices of the carrier's flight
attendant union, the Association of Flight Attendants alleges
United management announced its intent to illegally cut retiree
health benefits and raise retiree out of pocket costs, raising
legal issues significant enough to jeopardize the signing of the
concessionary agreement by union President Patricia Friend.
"I am not taking any action, including signing the contract,
that could be perceived as affirming the validity of the illegal
cuts United wants to make," said Friend, President of the
Association of Flight Attendants - CWA, AFL-CIO. "The court of
public opinion will decide if United is morally and ethically
bankrupt. We are going to fight in bankruptcy court and through
every other legal means possible to make sure United lives up to
the contract it agreed to so these devastating cuts don't
happen."
Attorneys for the
flight attendants say United management's deceitful actions call
into question the product and validity of the concessionary
negotiations. AFA is considering a number of legal actions in
addition to not signing the contract, including: asking the
bankruptcy court to set aside the 1113 relief (the concessionary
contract approved by the court last May), a bad faith bargaining
suit, a motion to compel United to allow people to return to work
who retired after the airline agreed to limit the health care costs
of retirees, and asking the bankruptcy court to appoint an examiner
to investigate management’s duplicitous actions.
As part of that deal, United management signed a letter of
agreement in May 2003 to ensure that flight attendants retiring
before July 1, 2003 would have access to health care benefits that
were less costly and more comprehensive than those that would be in
place for those who retire after that date. Based on that promise,
over 2,500 flight attendants retired before the July 1
deadline.
AFA claims United is
now seeking to slash the medical benefits and significantly raise
the out-of-pocket costs for those retirees despite the airline's
return to profitability. The union says the cuts are not necessary
for the airline's successful reorganization.
"People I worked with for 30 years retired because the deal
United management made was to limit health costs to those who
retired before July 1, 2003," said Friend. "Now those dedicated
workers won't be able to afford health care, or retirement, without
government assistance because of the lawlessness and callousness
United is displaying by reneging on that deal."
AFA says it has received hundreds of calls from retirees asking
if anything can be done through the courts to help protect them.
The unions claims all callers say they cannot afford the massive
financial hit they will take after United forces them to pay
hundreds of dollars per month of their already modest pensions just
to continue health insurance.