Flight Attendants Secure Deal for Retirement
January 18, 2006
Ladies and Gentlemen:
After an exhaustive fight in the courts, on Capitol Hill and by leveraging the power of our CHAOS™ campaign, we have won retirement security with a replacement pension plan. We have a tentative agreement for a defined contribution plan that more than doubles the company's original proposal. Within the context of bankruptcy and today's political climate, this agreement provides us with a foundation of retirement security for all Members. The agreement is now subject to Membership ratification - you will have the final say in the resolution of our year-long pension fight.
The tentative agreement includes a 3% company match effective January 1, 2006 coupled with a 2% direct contribution effective on the same day, escalating to a 2.5% direct company contribution effective January 1, 2007 and a 3% direct company contribution effective January 1, 2008 - for a total of 6% defined contribution plan. The agreement also includes $20 million in convertible notes and immediate vesting for all Flight Attendants currently employed by United. The full Agreement will be posted on our website and sent to your home so that you may cast an informed vote. We will conduct Pension Agreement meetings during the time ballots are open, so that you will have the opportunity to ask questions about the agreement and the process through which the agreement was reached. Complete details about the balloting process and thorough information about the replacement plan will be posted and printed for mailing as soon as possible.
Every track of our pension fight has played an important part in our efforts to preserve our retirement security. Our efforts have brought the issue of retirement security to the forefront of public and political debate. With your participation in our three-track fight on Capitol Hill, in the courtrooms of Chicago and Washington DC as well as within our powerful CHAOS™ campaign we were able to successfully leverage our position to more than double the original company proposal for a Flight Attendant pension replacement plan.
This tentative agreement signals more than what it provides in retirement security. It is a product of the hard work, tenacity and perseverance of our efforts as a Union. We look forward to United's exit from bankruptcy and a better time in which we can stand together to recover our sacrifices and fight for the compensation we have earned and rightly deserve. There is no doubt that we will continue to face many challenges together, but we know that every challenge or opportunity will demand nothing less than the best from all of us. We can be proud of what we have achieved together and hopeful for all that we have yet to accomplish.
Remember to check AFA Communication channels regularly for full details of the Pension Tentative Agreement. Ask the difficult questions, understand the agreement as relates to your retirement security and then cast an informed vote. The decision is yours.
Greg Davidowitch, President
United Master Executive Council