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Unions rap United exec pay
Published March 27, 2007 at midnight
Several of United Airlines' largest unions, expressing "outrage" over pay and reward packages given to the company's top executives, have banded together to lobby the carrier for improvemed compensation.
The groups, which represent 30,000 flight attendants, pilots, mechanics, air traffic controllers and engineers, have formed a coalition "to demand our fair share in the financial rewards that management currently enjoys," according to a statement released Tuesday.
United employees took two rounds of benefit and pay cuts to help the carrier through bankruptcy. The carrier emerged from Chapter 11 in February 2006 after slashing more than $7 billion in costs.
Now that United is profitable, unions are pushing for improved compensation and success-sharing benefits. They also want the airline to address some work-rule issues and move up contract bargaining dates currently scheduled to start in 2010.
"There are a few executives reaping these great rewards, while everyone else is being treated poorly," said Sara Nelson, a spokeswoman for the Association of Flight Attendants. "Throughout the bankruptcy the only thing these executives kept talking about was that were in this together. We now want to know our sacrifices were worth something."
The announcement by Uniteds unions comes a day after the carrier filed documents with U.S. regulators showing that it rewarded its top executive with nearly $40 million in compensation last year, including salary, stock awards and options and other perks. The calculations include the value of those stock awards and options on the day they were granted, although they vest over a four-year period and could be worth more or less when cashed in.
The union representing United's ticket agents, baggage handlers and other ground workers is not part of the coalition.
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