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.

FMI: www.unitedafa.org