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June 19, 2002
United Pilots' Leaders Endorse Airline's Economic Recovery Plan, Prepare to Ballot Union Membership
Rosemont, IL -- Leaders of the United Airlines pilotsí Master Executive Council (UAL-MEC), represented by the Air Line Pilots Association, International (ALPA), tonight concluded a three-day meeting with a vote endorsing an economic recovery plan that the union's negotiators and airline management reached last week. Through this vote, the MEC -- the governing body of the United pilots -- agreed to submit the proposed terms, estimated to provide the airline approximately $560,000,000 in cost savings over three years, to a vote of their membership with a recommendation for the terms' adoption.
"After thoroughly studying the issues, our representatives determined that participating in this recovery plan meets the best interests of the pilots, as both employees and stakeholders in this enterprise," said Captain Paul Whiteford, UAL-MEC chairman. United management has indicated that, combined with other cost-cutting measures and the participation of other employee groups, the pilots' contribution will help United Airlines qualify for a loan from the federal Air Transportation Stabilization Board (ATSB), which Congress established to assist airlines in the aftermath of the Sept. 11 terrorist attacks.
"The pilots' representatives came to the conclusion to endorse the recovery plan only after receiving detailed presentations from their negotiators and consultants. They exhaustively investigated the issues, carefully weighing the costs against the benefits and the risks against the opportunities. Our pilots will study the same information and undertake the same deliberations before they can make a well-informed decision," Whiteford said.
The UAL-MEC represents 10,000 United Airlines pilots, who own 28 percent of the airline's stock. ALPA is the world's largest and oldest pilots union, representing approximately 66,000 pilots at 43 air carriers in the United States and Canada.
ALPA Contact: Capt. Steve Derebey (847) 292-1700