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United Strike Talk Clouds Holiday Travel Flight Attendants Voice Displeasure Over Pension Plan

Posted on: Monday, 11 July 2005, 21:00 CDT

United Airlines says it will be business as usual this Fourth of July travel weekend but United flight attendants are threatening strikes and picket lines.

The Association of Flight Attendants said Thursday its members have the right to strike or picket because the bankrupt airline on Thursday handed over their pension plans to a government insurance agency, which will pay only part of what United would have owed them.

Calling its strategy C.H.A.O.S., or Create Havoc Around Our System, the Rosemont-based union maintains United unilaterally changed its contract, giving the union the right to strike or picket anywhere and anytime.

The Elk Grove Township-based airline, in response, said any walkout would be illegal and it will fire strikers.

"They don't have the right to fire people," said Sara Nelson Della Cruz, a spokeswoman for the union. "But we're not going to do anything to permanently damage our airline."

How the union can strike and not damage the airline has some observers stumped.

"If you pull this stupid C.H.A.O.S. stuff, it will kill the airline," said Michael Boyd, a Colorado-based airline consultant. "Even threatening to strike causes damage to the airline."

UAL Corp., the parent of United, continues to restructure under bankruptcy court protection. It has terminated its employee pensions, which were underfunded by billions of dollars. The Pension Benefit Gauranty Board, a federal agency, agreed to assume administration of those plans, but the flight attendants union is appealing the move in court.

The flight attendants union is the only United union that has not agreed to a re-negotiated contract based on the pension board taking control of the plans and the airline providing substitutes such as 401(k) plans.

Last week, the U.S. House of Representatives voted for an amendment that would stop United from unloading its pensions. However, analysts say the amendment is likely to be opposed by both the Senate and President Bush. The airline lost $93 million in May.

- Daily Herald news services contributed to this report.

Source: Daily Herald; Arlington Heights, Ill.

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