Flight Attendants Urge Senate to Constrain Executive Pay
August 3, 2009
Chicago –Flight attendants, represented by the Association of Flight Attendants-CWA, AFL-CIO (AFA-CWA) at United Airlines, applaud the U.S. House of Representatives for approving legislation that would put new constraints on executive pay, and urge the Senate to adopt a similar measure. This important milestone in passing the measure represents one of the first pieces of President Obama’s overhaul of financial regulations.
“If these last years have taught us anything, it’s that executive greed, while a company and it’s employees are struggling, leads to disastrous results. One has only to look at the financial meltdown of our recent recession to realize the necessity of reform,” stated Greg Davidowitch, president of the AFA-CWA at United Airlines. “Our country is still reeling from the turmoil that resulted from unchecked and limitless executive compensation, despite the consequences to our society.”
The flight attendant union members have long been advocates for “say on pay” at United Airlines, and in 2008 Greg Davidowitch urged shareholders to adopt a policy that gives the opportunity at each annual meeting to cast an advisory vote on executive compensation. Similarly, legislation soon to be before the Senate would give shareholders of public companies annual, nonbinding advisory votes on executive pay and golden parachute provisions.
Under current circumstances most shareholders have no mechanism to provide feedback or express dissatisfaction with the performance of executives or their compensation. Oversight in this area is long-overdue and a critical component of ensuring the financial stability of our airline and our countries financial future.
“Flight attendants have a deep connection to the communities in which they work and live,” Davidowitch stated. “When executives at United Airlines or any corporation continue to be rewarded for a lack of performance or potential financial catastrophe, the system is clearly in need of reform.”
“We urge the Senate to move quickly, act responsibly and do the right thing by employees and taxpayers who ultimately end up holding the bag for too much corporate excess. We have championed this cause for many years and believe it to be vital to the success of our company and nation.”
More than 55,000 flight attendants, including the 16,000 flight attendants at United, join together to form AFA, the world’s largest flight attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at www.unitedafa.org.