UAL Union Coalition Demands Say on Pay
June 3, 2008
Statement by the Union Coalition at United Airlines
Regarding UAL Shareholder Proxy Proposals on Executive Compensation
Chicago, Ill., June 3, 2008 – As United Airlines executives continue filling their pockets to overflowing proportions, the employees, passengers and shareholders continue footing the bill resulting from management’s failed decision making. Passengers have expressed dissatisfaction with United Airlines, shareholders face devalued stock and employees are outraged at ill-advised schemes the current executives of the airline continue to perpetrate. United Airlines management is utterly failing everyone.
United Airlines Union Coalition leaders released the following statement by Captain Steve Wallach of the Air Line Pilots Association (ALPA), Randy Canale of the International Association of Machinists & Aerospace Workers (IAM), David Bourne of the International Brotherhood of Teamsters (IBT), Greg Davidowitch of the Association of Flight Attendants (AFA-CWA), Craig Symons of the Professional Airline Flight Control Association (PAFCA) and Lou Lucivero of the International Federation of Professional and Technical Engineers (IFPTE):
“When UAL executives continue to be rewarded for lack of performance, the system is clearly broken. There is a clear and reasonable answer to why ‘Say on Pay’ proposals are commonplace in Europe, there are more than 90 similar proposals filed at U.S. corporations and the concept is currently being considered for legislation in Congress.
“Say on Pay is appropriate at UAL. In 2006, UAL’s CEO compensation alone exceeded $39.7 million in a year the company emerged from bankruptcy and employees were forced to accept painful cuts. In 2007 Glenn Tilton was rewarded with $10.3 million and UAL has schemed up an additional plan called the “2008 Incentive Compensation Plan” to again lavishly reward failed decision making. These compensation schemes are excessive in light of company performance and the impact of extreme inequity on the morale of the workforce.
“It is not unreasonable to demand that shareholders be provided a meaningful way to voice their opinion on executive performance and compensation at the annual shareholder meeting. Standing together and speaking with one voice, United Airlines’ unionized employees are working aggressively to give shareholders a say on executive pay. We stand shoulder to shoulder to rein in management greed and hold them accountable for their failures.
“United executives must turn their attention inward and address the myriad of problems and issues identified by passengers, employees and shareholders resulting from their single-minded focus on exploiting consolidation and other actions for their personal gain.”
The Union Coalition at United Represents more than 48,900 United employees.
Captain Steve Wallach
Air Line Pilots Association (ALPA)
International Association of Machinists & Aerospace Workers (IAM)
International Brotherhood of Teamsters (IBT)
Association of Flight Attendants (AFA)
Professional Airline Flight Control Association (PAFCA)
International Federation of Professional & Technical Engineers (IFPTE)
847/292-7170 ext. 524