United MEC Chair Letter
05-10-2005, 06:53 PM
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United MEC Chair Letter
May 10, 2005
Dear Fellow Pilot:
There has been much recent press speculation regarding United’s bankruptcy. As always, I want to keep you informed on several issues.
The Agreement between the Company and the PBGC
You have undoubtedly read that AMFA, the IAM and AFA amongst others, objected to the agreement United reached with the PBGC regarding the termination of the four defined benefit plans (the A-Plans.) In addition, ALPA raised significant concerns about the impact of the PBGC agreement on our recent Bankruptcy Exit Agreement with United. Over the course of the past week, our concerns were acknowledged by both United and the PBGC, and were addressed in a series of clarifications to the PBGC settlement announced in court today. United now acknowledges that the PBGC settlement will not interfere with the pilot convertible notes, the new C Plan contribution or any other aspect of the Pilot Agreement. The PBGC’s acknowledgement is hedged, reiterating its “regulatory” powers, but the PBGC acknowledges that United is required to provide the C-Plan under the Pilot’s Agreement irrespective of the PBGC agreement with United.
Some have voiced the opinion that the PBGC settlement gave us the right to again fight the Company’s announced intent to terminate our defined benefit plan. In fact, the PBGC settlement agreement approved by the Bankruptcy Court clearly includes the termination of every defined benefit plan at the Company and brings to a close any further effort to force the Company and its creditors to maintain the plans. In the Bankruptcy Exit Agreement ratified this past January, in consideration for the Company’s stated intent to terminate all defined benefit plans, we received the $550 million convertible notes and the 6% C-Plan (in effect creating a 15% B-Plan.) What we will litigate forcefully is the proposed December 30, 2004 termination date, and in that battle United has agreed to support us.
Statements by other unions regarding strikes and strike-related activities
We all have now read about the strike threats issued by other unions. Your MEC and your MEC officers fully understand the level of concern you have regarding the potential for strikes and strike-related activities at United.
Let me be very clear about our responsibilities and duties. Safety of flight will not be compromised under any circumstance. Captain’s Authority will not be abrogated under any circumstance. Do not allow non flight-related issues in any fashion to compromise the safe conduct of your flight as is required by the FARs and the FOM. Insist on the same professionalism of all who deal with your flight as that which you display every time you come to work. We must not become distracted and consumed by events over which we have little or no control. For us to do otherwise is simply unacceptable and the consequences are too great.
ALPA’s long-standing practice is to not comment on the activities of any other union, irrespective of the subject. You can be assured that your MEC is fully informed and will continue to be updated on a real-time basis. We fully understand the impact that any strike or strike-related activity would have on the viability of our airline and the restructuring that we have worked so hard, and sacrificed so much, to accomplish. The MEC is prepared for any eventuality and will inform you immediately via code-a-phone and email as the situation warrants. It would be premature to speculate on what may or may not happen, and to do so only expose us to possible sanctions from others involved. I know your continued professionalism will allow us to work through any issues we may face.
The decision by the Seventh Circuit Court of Appeals
On Friday, May 6th, the Seventh Circuit Court of Appeals overruled the Bankruptcy Court judge and a Federal District Court judge regarding United’s position relative to the aircraft lessors’ group know as the Aircraft Provider Group. The Seventh Circuit Court’s decision is available for your review on the MEC website.
This decision again puts a number of aircraft owned by this group of lessors at risk of being repossessed. United has stated that it clearly wants to reach an agreement with the lessors’ group so as to not lose the aircraft. As of this date, no agreement has been announced. Again, as we learn more information, we will pass it on to you.
As events continue to unfold in United's bankruptcy case this week, you will see numerous press reports and hear an endless stream of speculation and rumor. Don’t believe everything you read or hear. Instead, I urge you to continue monitoring your e-mail inbox, the MEC website and the MEC Code-A-Phone for the facts as circumstances evolve.
We will continue to keep you informed.
Fraternally,
Captain Mark Bathurst
Chairman, UAL-MEC
Dear Fellow Pilot:
There has been much recent press speculation regarding United’s bankruptcy. As always, I want to keep you informed on several issues.
The Agreement between the Company and the PBGC
You have undoubtedly read that AMFA, the IAM and AFA amongst others, objected to the agreement United reached with the PBGC regarding the termination of the four defined benefit plans (the A-Plans.) In addition, ALPA raised significant concerns about the impact of the PBGC agreement on our recent Bankruptcy Exit Agreement with United. Over the course of the past week, our concerns were acknowledged by both United and the PBGC, and were addressed in a series of clarifications to the PBGC settlement announced in court today. United now acknowledges that the PBGC settlement will not interfere with the pilot convertible notes, the new C Plan contribution or any other aspect of the Pilot Agreement. The PBGC’s acknowledgement is hedged, reiterating its “regulatory” powers, but the PBGC acknowledges that United is required to provide the C-Plan under the Pilot’s Agreement irrespective of the PBGC agreement with United.
Some have voiced the opinion that the PBGC settlement gave us the right to again fight the Company’s announced intent to terminate our defined benefit plan. In fact, the PBGC settlement agreement approved by the Bankruptcy Court clearly includes the termination of every defined benefit plan at the Company and brings to a close any further effort to force the Company and its creditors to maintain the plans. In the Bankruptcy Exit Agreement ratified this past January, in consideration for the Company’s stated intent to terminate all defined benefit plans, we received the $550 million convertible notes and the 6% C-Plan (in effect creating a 15% B-Plan.) What we will litigate forcefully is the proposed December 30, 2004 termination date, and in that battle United has agreed to support us.
Statements by other unions regarding strikes and strike-related activities
We all have now read about the strike threats issued by other unions. Your MEC and your MEC officers fully understand the level of concern you have regarding the potential for strikes and strike-related activities at United.
Let me be very clear about our responsibilities and duties. Safety of flight will not be compromised under any circumstance. Captain’s Authority will not be abrogated under any circumstance. Do not allow non flight-related issues in any fashion to compromise the safe conduct of your flight as is required by the FARs and the FOM. Insist on the same professionalism of all who deal with your flight as that which you display every time you come to work. We must not become distracted and consumed by events over which we have little or no control. For us to do otherwise is simply unacceptable and the consequences are too great.
ALPA’s long-standing practice is to not comment on the activities of any other union, irrespective of the subject. You can be assured that your MEC is fully informed and will continue to be updated on a real-time basis. We fully understand the impact that any strike or strike-related activity would have on the viability of our airline and the restructuring that we have worked so hard, and sacrificed so much, to accomplish. The MEC is prepared for any eventuality and will inform you immediately via code-a-phone and email as the situation warrants. It would be premature to speculate on what may or may not happen, and to do so only expose us to possible sanctions from others involved. I know your continued professionalism will allow us to work through any issues we may face.
The decision by the Seventh Circuit Court of Appeals
On Friday, May 6th, the Seventh Circuit Court of Appeals overruled the Bankruptcy Court judge and a Federal District Court judge regarding United’s position relative to the aircraft lessors’ group know as the Aircraft Provider Group. The Seventh Circuit Court’s decision is available for your review on the MEC website.
This decision again puts a number of aircraft owned by this group of lessors at risk of being repossessed. United has stated that it clearly wants to reach an agreement with the lessors’ group so as to not lose the aircraft. As of this date, no agreement has been announced. Again, as we learn more information, we will pass it on to you.
As events continue to unfold in United's bankruptcy case this week, you will see numerous press reports and hear an endless stream of speculation and rumor. Don’t believe everything you read or hear. Instead, I urge you to continue monitoring your e-mail inbox, the MEC website and the MEC Code-A-Phone for the facts as circumstances evolve.
We will continue to keep you informed.
Fraternally,
Captain Mark Bathurst
Chairman, UAL-MEC
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