Flytolive

That sounds like Bonds. He is the worst executive left standing.

From what I have heard his days at United were numbered until this PAR/ACE proxy fight started. Let's hope Meyer and Munoz have these clowns stymied.

Flytolive

United Airlines' Contract Progress Draws Labor Into Hedge Fund Battle

By Ted ReedFollow | 04/07/16

A push to sign new labor agreements is helping United (UAL - Get Report) to battle hedge fund investors that want a bigger role in management.

That battle is playing out against the backdrop of United's 90th birthday, which occurred Wednesday, a day when United's pilots and flight attendants demonstrated at the Boston offices of hedge funds Altimeter Capital and PAR Capital, which hold 7.1% of United's shares. They want to add six new members to United's 15 member board, against United's wishes.

The demonstration underscored an effort by CEO Oscar Munoz, who took over in October, to reverse what had been a hostile labor climate. Recent gains have been significant.

A tentative deal with the International Association of Machinists, announced last week, promises 30% pay rate increases over five years and also would bring in at least a hundred jobs that have been outsourced. Meanwhile, long-stalled talks with the Association of Flight Attendants are moving ahead six years after the 2010 merger between United and Continental.

"There is finally a focus on employees and concluding contract negotiations," said Sara Nelson, president of the Association of Flight Attendants, which represents 24,000 United flight attendants. "Prior management was only focused on share value and share price and compensation for the executive team.

"This is an airline with longevity," Nelson said. "That is the significance of the 90th birthday. Now, we need to stick with the vision that Oscar Munoz has put forward.

"These hedge funds want to run the airline as their piggy bank, as opposed to supporting the employees and Oscar Munoz's plan for long-term success," she said.

The hedge funds don't view their effort as one that undercuts Munoz or places them in conflict with employees.

"We have deep appreciation for all the employees of United," a spokesman for Altimeter Capital said Wednesday. "However, under this board of directors, employees, customers, and owners have suffered. We will support Oscar and a new board to make the changes necessary to put United back on top."

On April 6, 1929, a mail flight by United predecessor Varney Airlines took off from Pasco, Wash., for Boise, Idaho, an early example of the U.S. government subsidizing startup technologies that later enabled vast economic gains. Today, the flight is viewed as United's first.

United's 90-year history also includes the first Boeing 777, creating the first flight kitchen, starting the flight attendant profession and becoming the first airline to serve 50 states. Today, United serves every state but Delaware.

Another chapter in United's history involves the 1989 escape from a takeover bid by a Los Angeles billionaire named Marvin Davis.

The getaway wasn't exactly methodical. Davis' $6.2 billion bid was trumped by a $6.75 billion bid by a management-employee group headed by then CEO Stephen Wolf. But the group's announcement that it couldn't come up with financing triggered a one-day 190 point decline in the Dow Jones Industrial Average, which fell to 2,569.

It was the biggest decline in two years and it put a damper on what had been a flourishing market for airline takeovers -- including one by Donald Trump, who wanted to take over American.

United's labor unions sought to ward off Davis' bid by joining with Wolf. Now they back Munoz, who has reversed the course set by predecessor Jeff Smisek, who resigned under pressure in September.

In January, United pilots ratified a two-year contract extension with a 79% approval. "We do not welcome outside influences attempting to raid our financial coffers when those resources should be reinvested into the corporation and its employees, thereby providing a better product for all stakeholders," Todd Insler, chairman of the United chapter of the Air Line Pilots Association, said Wednesday in a prepared statement.

Next week, the 30,000 United employees represented by the IAM will vote on seven tentative agreements that call for 30% pay increases over five years and a 25% hike in defined benefit pension plans. Additionally, the contract brings back work that had been outsourced.

"We're happy with the deal we were able to get with this United management team," said IAM spokesman Joe Tiberi. "We have work coming back, including work with ExpressJet, who they code share with. We've never had that work guaranteed before." The work involves at least 100 jobs, Tiberi said.

Nelson said a tentative joint contract agreement for the flight attendants is likely in "the near future." Since the 2010 merger of United and Continental, the two flight attendant groups have worked under separate contracts. Under, Munoz however, "contract negotiations are finally moving," Nelson said. "We can visualize a conclusion."

Looking back on United's history, Nelson said Munoz is the best CEO since William Patterson, who ran the carrier from 1934 to 1966.

"There was a real recognition that everyone at the airline plays a part in its success," she said. There was a focus on employees, a focus on what Oscar Munoz is calling 'United being United.'"

gettinbumped

No, my logic is based in the facts. You, as usual, just make stuff up.

1) September 8th, 2015 OM named CEO of UAL
2) October 26th, OM has heart attack (except according to you he didn't really...)
3) November 6th, UAL opens up early negotiations with IAM
4) March 8th, GB announced as leader of attempted board takeover

You assertion that the IAM decided to go with "the pig in the poke" instead of an unknown is simply WRONG, as I tried to point out to you once already. You are 4 months too late with your dumb beetle headed theory. You psychopathic theories are never based in any sort of relevance, fact, or even common sense.

AllenAllert

Continue with the insults - it's clown like.

Fact is ALPA, F/A's and the IAM are buying into the 'pig in the poke' to avoid the takeover attemp by the GB and outsider group. Yes, contracts were being negotiated while JS was running the show and continued under OM. With the exit of JS, some of the real airlines people at the airline in a position to make change did. Here we are at 6+ years into merger and we still don't have it done. Common sense should prevail and did. As triple7 pointed out the mechanics were low-balled by some of what is left of the JS gang and overwhelming voted down a take-it-or-leave-it contract.

The fact that several of the union groups meet at the outsiders headquarters office prove the 'pig in the poke' theory. They know the impact of a GB lead outside takeover would have on labor. Has nothing to do with how great you feel OM is as others perceived weakness in OM and his management team that resulted in putting United in play.

This is your attemp to anoint him as surpreme leader number 1. OM has not been on property or actually running the show that long. If anything, you should give credit to Hart for running the show while OM laid in his sick bed. Many of the changes have occurred with Hart at the helm.

Carry On with the OM Lovefest - at least it's hope.

baseball

1. UAL is always in play. it's a publicly traded company.
2. Your hang nail statement is stupid and illogical.
3. No one on the UAL BOD, other than OM has an operations background into anything more complex than running a candy store.
4. The BOD was moving cautiously, slowly and prudently. No other action was necessary nor justified as you seem to state they needed to move "swiftly." No point when still assessing the situation.
5. The BOD lost an operations guy when OM got promoted. There would be a both a need and a vacancy. if GB gets the nod then so be it. So what. who cares? OM will want someone with an ops background who can walk the walk and talk the talk. The employees also want someone with a proven track record of performance and so do the shareholders. it may be GB, or it may be Captain Sully. It's not our decision. GB knows allot of key people at Boeing and has excellent relationships within the world aviation community and vendors alike.
6. Anything "cookey" sounding or divisive is Mike Bonds talking.
7. There is allot of BOD politics going on, most of which we never know about due to confidentiality agreements and gentlemen's agreements.

Most of what you write is pure malarkey.

baseball

1 Union groups meet where they meet. Proves nothing. I've seen 3 separate labor union groups meet at a titty bar once. Big deal.
2. The impact of a GB presence (not a takeover) would have on labor is miniscule. ALPA runs UAL and GB knows it. UAL doesn't pee without ALPA giving permission. The unions run UAL and no one is going to change that. it's based in Chicago in labor friendly country and the local politicians have their influences and their protection mechanisms within UAL. GB's presence is to pacify the shareholders and to assist in communicating on culture and helping negotiate with Boeing and GE.
3. All of Hart's actions were sanctioned by OM. OM orchestrated all employee actions and policies, etc.
4. I just met Hart. He can't spell airline yet. He doesn't get anything operationally related. Has no clue what PBS is or why we care about that. He hasn't even read our contract. He is a very honest man, and that I do respect.

baseball

This airline needs a savior. Operationally it has been a total joke. This airline needs an honest broker to work with employees to regain trust. It needs a leader to push things in the right direction, and it needs someone to hold middle management accountable for their inefficiency and lack of initiative.

Right now OM is the best we have, so I'll be happy to have him as our leader until he does something that warrants his removal, replacement, or retirement.

Regularguy

Baseballed

I'm sorry you think ALPA runs UAL, but the facts don't make that true. Yes pilots who are organized and work together have a huge influence on where this Company goes, but it is the banks and debtors who run UAL. Additionally at one time it was a Hedge fund which steered the process and made the ESOP happen in the day. I believe their name was Coniston something.

The merger was a bank/finance deal and if you want to see where UAL will go, follow the money.

As far as OM goes all he has to do to make Jeff look like a fool is speak kindly about his fellow employees at UAL (yes he's an employee too). Jeff set a very low bar.

gettinbumped

Yup, that's it. Everyone else is wrong. The delicate genius AllenAlert has it all figured out. Wonder who will *fake* a heart attack next

AllenAllert

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Why did you select baseball to represent your little covey?