Pilots, flight attendants to protest executive pay at first meeting in years
Source: Daily Herald
Author: Anna Marie Kukec
When UAL Corp. shareholders gather Thursday in Chicago for their first meeting in five years, they may have to cross a picket line of United Airlines flight attendants and pilots.
The unions have been railing against an estimated $40 million compensation package provided to UAL Chief Executive Officer Glenn Tilton, which was revealed in a March federal filing.
The unions said Tuesday the pickets are necessary to show the "shared sacrifice" mantra they followed throughout the bankruptcy did not turn into a shared reward, said Sara Nelson, spokeswoman for the Association of Flight Attendants.
"It will reinforce the Union Coalition message that executives must follow through on their promise of shared rewards," said Nelson. "No one does better unless everyone does better, employees, passengers and shareholders alike." The Union Coalition was formed to represent five unions while United worked through its bankruptcy, which it emerged from in February 2006.
The shareholder meeting is scheduled for 10:30 a.m. Thursday at the Field Museum, 1400 S. Lake Shore Dr., Chicago. Despite the likelihood of a picket, UAL officials will carry on their business, UAL spokeswoman Jean Medina said.
"It's a great day for United; it's our first shareholders' meeting in five years, and we are looking forward to talking directly with our investors about everything we have accomplished together as a company," Medina said.
Certain numbers in the proxy are estimates, based on how United performs over a 10-year period. They do not reflect what executives, such as Tilton, actually received or what they were eligible for in 2006, which in all cases, is less than half of what is reported, Medina said.
The management equity incentive plan is not new. The plan was approved by the court and UAL's creditors committee, which included the unions' participation and oversight.
Still, the pilots are determined to express their concerns before the shareholders.
"While the pilots of United Airlines have been quietly and safely delivering our passengers to their destinations, current airline management has gutted our families' financial security by terminating our pension plan and slashing our pay by an average of 50 percent," said Dave Kelly, spokesman for the Air Line Pilots Association.
The unions last picketed at the May 2001 shareholders meeting regarding the proposed merger with US Airways, which later failed.
In a related matter, about 470 UAL salaried and management employees last week were sent a letter, along with copies of proxy and voting materials, because they may not have received them when they were first mailed around March 26, wrote UAL General Counsel Paul R. Lovejoy.
"Due to an administrative error, many (Management Equity Incentive Plan) participants did not receive these materials," Lovejoy wrote.