Ellen

United unions protest exec pay;
5 groups also cite staff shortages

BYLINE: Marilyn Adams

BODY:

In a rare joint protest, five unions at United Airlines issued a statement Tuesday complaining of low pay, short staffing and excessive executive compensation at the No. 2 airline.

The protest from unions representing 30,000 United employees came one day after the Chicago-based carrier reported 2006 executive compensation in a securities filing, and 14 months after it exited Chapter 11 bankruptcy reorganization. United said its top five executives received $25.7 million in the form of cash, stock or exercisable stock options. Of that, CEO Glenn Tilton received $9.3 million, the filing said.

"Throughout United's bankruptcy, 'shared sacrifice' was the mantra employees heard from upper management," the unions' statement said. "Executives have failed to lead by example, as employees have watched these individuals collect millions of dollars worth of stock, pay raises and bonuses."

United's labor leaders say cost cuts made during the airline's three-year stay in bankruptcy are hurting customer service.

Last year, United drew more complaints for every 100,000 passengers than any other airline, according to the U.S. Department of Transportation.

"Many of our airports are severely understaffed in terms of gate agents, ramp workers and support staff," said Steve Derebey, Air Line Pilots Association spokesman.

The rank-and-file are still working under contracts negotiated during bankruptcy in which they took deep pay cuts.

United said Tuesday that its top executives took home less than what was reported because United's shares aren't worth what was estimated, and executives did not exercise all the options they could. United spokeswoman Jean Medina said Tilton received about half the $9.3 million reported.

Union leaders representing United's pilots, flight attendants, mechanics and other workers called on United's management to beef up profit-sharing, negotiate richer labor contracts sooner than scheduled and hire more help to relieve short staffing.

During bankruptcy, United slashed $7 billion from annual expenses. It shed 20,000 employees, 100 jetliners, $8 billion in debt and all its pension plans. After exiting bankruptcy on Feb. 1, 2006, United earned a $25 million profit for the rest of 2006.

United's largest union, the International Association of Machinists, representing customer service workers and others, was not part of Tuesday's statement and was expected to issue its own.

Medina said United has been working with the unions to address issues that concern them. United recently agreed to start paying pilots for their time when their flights are canceled, for example.

She said the airline won't move up scheduled contract talks. She noted United's executive pay plan was approved by a majority of the bankruptcy creditors committee, which included union members.


LOAD-DATE: March 28, 2007