United's Unions Want Their Due

Recent contracts for flight attendants at Alaska Air(ALK) and for ramp workers and agents at Hawaiian(HA) may provide models, Swelbar says.

Not only do both groups get raises, but also, flight attendants will join management in a performance-based incentive plan, while the clerical workers, who are IAM members, will have incentive-based compensation and performance and profit bonuses.

United is "looking forward to collaborative discussions with all of our unions," says spokeswoman Megan McCarthy.

So far, United workers are focused on making up for lost ground. Tiberi says the IAM last negotiated a contract between 1999 and 2002. In bankruptcy, United terminated defined benefit pension plans for all employees. Today, only the IAM has a defined benefit plan, administered by the union. However, IAM members saw wage cuts of 13.5% in 2003 and 5.5% in 2005.

Pilots took minimum pay cuts of 40%, Heppner says. The average for a 10-year A320 captain is $127,431 annually today, down from $187,722 in 200. A 10-year A320 first officer makes $69,958 today, down from $101,432 in 2000. Many pilots lost far more, moving to smaller aircraft and to the first officer's seat.

Meanwhile, since negotiating two five-year contracts in 1995, flight attendants have seen work-rule changes, reductions in medical and pension benefits and 30% pay cuts, Clarke says. "United has consistently managed to find a way to pay executives their bonuses and salaries," he says. "They can find a way to pay us too."

>To order reprints of this article, click here: Reprints