First Quarter Loss: Breaking Down Management Propaganda

AFA Leaders Continue to Meet and Review Status of Industry

Our Union continues to review the conditions of the industry and our airline. As we reported in last Friday’s edition of Dear AFA, the MEC met in special session last Wednesday to review the current state of affairs at United Airlines and across the industry. Your Local Council Presidents met again in special session on Tuesday of this week for another industry update and review of the status of a potential for a merger or consolidation scenario involving United Airlines. There remains a myriad of consolidation scenarios and no definite plan for our airline. We are ready to address any circumstance and your AFA leaders remain consistently engaged in reviewing the state of the industry through regularly scheduled meetings over the coming weeks. 

Higher than Predicted First Quarter Loss

Tilton’s strategy for UAL is falling on deaf ears with workers and Wall Street. Management continues to ignore the realities of our airline, including a Flight Attendant workforce that remains angry about the ravages imposed on us by executives who failed to position United Airlines for success. They refuse to address even the most basic of employee expectations. Conversely, they raised management salaries, created new and unnecessary executive positions and ignored employee input and recommendations on corporate and operational decisions. All of this has culminated in the worst passenger and employee relations as demonstrated by the Airline Quality Report (AQR), passenger and employee surveys. 

It’s no coincidence United Airlines is facing mounting criticism from passengers, shareholders and employees alike. Flight Attendants, other workers and passengers continue to pay for the poor decisions of current United executives. The problems at United Airlines fall at the feet of the executives who have continued to award themselves at every turn. No one should expect that Flight Attendants or other front-line employees will make it right for these executives. 

Clearly, several management decisions AFA has opposed, such as giving away $250 million to shareholders even as the industry remains in tumultuous times, were greed-motivated and contrary to the long-term success of our airline.  This payout to shareholders, executives among them, occurred during the first quarter of this year and equals nearly have of the reported loss. 

Executives are attempting to create an atmosphere of fear at our airline and in the industry. They want to create a circumstance where workers, Wall Street, regulators and the public become submissive to their plans as fear breeds inaction and inability to view the conditions with clarity.

Job Cuts and Fleet Reduction

In response to the first quarter losses, Tilton announced 1,100 job cuts and plans to further “trim” the fleet. Without stating where the job cuts will come from, he announced that 500 salaried and management positions will be cut. This remains to be seen. 

Through on-going analysis by our financial and economic experts, we have argued that management ranks are inflated and a drag on the success of United Airlines. Executives consistently have shifted manager positions and renamed their bureaucratic hierarchy as a means to attempt to distract from their inflated ranks. More recently they have announced newly created director and executive positions. There is no reason to believe that their current claim will actually result in the reduction of management positions.

Flight Attendant ranks will naturally decline due to the previously announced halt of hiring. This hiring freeze cuts 2008 plans for new Flight Attendant numbers by two-thirds from 1200 to approximately 400 this year. There is one class of Flight Attendants still in the training center and after their graduation next week new hire training will cease for the year. As Flight Attendants retire or decide to leave United Airlines, our ranks will naturally decrease.

In addition, Onboard management continues to manage any overage in the Flight Attendant population by offering Special Leaves, awarding ANP and responding to AFA’s advocacy by utilizing other Contractual scheduling provisions. To be clear: the job cuts announced on Tuesday by United management will not affect any current Flight Attendants, either on the line or in Flight Attendant training.

Contractual Job Protections

Should conditions later change to include a large reduction in personnel, remember that our Contract provides significant job protections. Prior to any furlough, the Foreign National Letter of Agreement requires that all Foreign Nationals currently based in Singapore and Bangkok be furloughed or terminated. This in turn would provide a greater number of flight hours for AFA Flight Attendants to help manage any overage in personnel. 

If we find ourselves in a furlough scenario after the release of Foreign Nationals, then Section 21 of our Contract provides us with industry-leading furlough protections. In summary, voluntary furloughs must first be offered prior to imposing any involuntary furloughs. Our Contract provides certain incentives for Flight Attendants to volunteer for furlough status such as providing medical, dental and mainline travel benefits along with seniority accrual equivalent to active Flight Attendants. Full details about our furlough protections may be reviewed in Section 21 beginning on page 154 of our Contract.

Staffing Reductions – Another Bad Decision

Yesterday, Vice President Onboard Service Alex Marren announced plans for additional staffing modifications effective June 1st for United Economy on “all wide-body aircraft and, in some cases, premium cabins on some domestic wide-body flights.” We have identified for management the consequences of this decision and the objections we have to the reduction in staffing – just as we did when management announced staffing reductions on the 757. 

Management is attempting to wring another concession from us by making Flight Attendants work harder by decreasing staffing without providing us with the tools to do our job or the proper compensation for our efforts. We will not make their misguided plan work and we will not pay the price for their poor decision-making.

Safety First – We Don’t Make Up for Poor Management Decisions

As professionals we will ensure that safety always comes first and that our safety procedures are completed first before any service. Our work as safety professionals begins with our preparation before every flight and continues with high activity during the boarding process. Maintaining our boarding positions becomes more critical than ever as we will be charged with monitoring a larger portion of the cabin. Predeparture and other service procedures are secondary to safety. Do not be tempted to violate Federal regulations by taking orders or being up and away from your jumpseat for any reason other than safety during taxi. Avoid working faster and increasing your risk of injury. If the service cannot be completed, don’t jeopardize your safety or the safety of the passengers.

Closely review our safety procedures delineated in the F.A.O.M. to ensure we are in compliance with all of our responsibilities. And remember, tagging bags is not one of those responsibilities. This work is not part of the scope of our jobs as Flight Attendants, and further, it is an FAR violation. Our procedures on board prior to departure require all of our attention for the safety and security of the flight. When the bags are piling up just remember – don’t tag the bag! Go to the review of our safety responsibilities published on our website earlier this week in relation to the reduction of staffing on the 757. Print and carry this review with you (using the underlined link within this paragraph).

Together we can also utilize Contract Section 4.L.2. as we experience the effects of this management decision during our work on the airplanes. This provision provides AFA with the ability to address any staffing issue that creates a marginal service condition such as not being able to complete our standard practice work assignments within the allotted times. Work according to the standards in the F.A.O.M. – no more, no less. If you experience marginal service conditions write a report through DIS*123 and ensure that a hard copy of the report is provided to your Local AFA Office.

Remain Informed

Management will continue to attempt to capitalize on the uncertainty of the coming weeks. Rumor and speculation will continue to run rampant. Don’t allow their ploys to take hold. Remain informed through official information from your AFA.

In Solidarity,

Greg Davidowitch, President
United Master Executive Council