Controversy at United Over Bonuses Begins

Know More: United Airlines 2.0, United Airlines

////United Airlines has not left bankruptcy protection yet and the uneasiness between the unions and management has begun already.
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Flight attendants at United Airlines are asking a court not to confirm the No. 2 U.S. carrier's plan to exit bankruptcy protection, citing plans to pay bonuses to 400 members of management. The union representing flight attendants at the UAL Corp. on Wednesday also objected to a part of the reorganization plan that allows the airline to reject their labor contract once it does emerge from bankruptcy.

A federal bankruptcy court in Chicago next Wednesday is scheduled to begin a hearing that United hopes will confirm the reorganization plan, paving the way for it to end its bankruptcy after more than three years. UAL infuriated its unions during its Chapter 11 case by slashing wages and benefits and terminating pension plans.

Yahoo! News

American Airline's employees are upset over similar issues. About 1,000 American Airlines executives are set to receive payouts because of the rise in share price of parent AMR Corp. Top executives at AMR would be receiving payouts of nearly $1.7 million and $1.4million. AMR's stock has jumped 169 percent, which outpaced its peers. However, AMR's stock price is still 12 to 15 dollars shy of their 2001 year levels where the price was valued at nearly US$40 per share.

With airlines struggling to make profits for the last few years, the loss of billions of dollars last year, and the cost of fuel still above US$55 a barrel, it seems like payouts and bonuses are irresponsible until the health of the airlines return to pre-2001 levels.

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