Unions at United Airlines are asking "Where's mine?"
A coalition of five labor unions representing more than 30,000 United employees Wednesday blasted United parent UAL Corp.'s request to accelerate repayment of $350 million in debt and funnel $500 million to shareholders through such tactics as stock buybacks.
The unions accused the Chicago-based carrier of turning "a blind eye toward its employees, the very people who saved this airline from extinction."
In a prepared statement, the coalition said it is "absolutely opposed to any transaction United may contemplate that is to the detriment of its workers.
"Employees have sacrificed billions of dollars in wages, pensions and degraded work rules as a result of United's 39-month bankruptcy," the coalition said. "Since emerging from bankruptcy, United has cut its total debt by billions while ignoring its employees.
"Yet management sees fit to reward shareholders with new initiatives without giving a passing thought of recognizing those who have sacrificed the most to return this airline to economic health."
UAL spokeswoman Jean Medina said, "All our stakeholders were impacted during our restructuring, including our shareholders who were wiped out. Our shareholders today expect a return on their investment. Our employees benefitted from $2 billion in equity and notes at exit, and they share in our success when we are profitable.
"Every time we pay down debt, reduce our costs and improve profitability it is a direct benefit to employees who receive 15 percent of our profits, more than $100 million so far this year. To suggest that we should increase our costs in an environment of $90 [per barrel of oil] fuel is ludicrous."
The coalition insists any gain from credit restructuring must be shared with employees.
