March 19, 2008  

(Washington, D.C.) – The Teamsters Union said Wednesday that it’s time for UAL Corp. chief executive Glenn Tilton to run the airline like a company, not a tag sale.

The union was responding to the announcement that the airline plans to cut capacity and ground as many as 20 airplanes, or 4 percent of its fleet. UAL has began charging $25 for passengers to check a second bag and last week raised some fares by $50 per round trip.

“Glenn Tilton is all too willing to cut the fleet and slash workers’ wages, but he’s not so eager to trim his own exorbitant pay package,” said Teamsters General President Jim Hoffa. “Unless he shows genuine interest in rebuilding United, an airline that employees were once so proud to work for, it’s time for him to go.”

United consistently receives failing grades for customer service. Its employees, who sacrificed billions in pension benefits and wages during UAL’s bankruptcy reorganization, continue to earn concessionary salaries. Meanwhile, Glenn Tilton took home a pay package of salary, bonuses, and incentives worth $39.7 million in 2006.

Since United (Nasdaq: UAUA) emerged from bankruptcy in 2006, Tilton touted airline consolidation as the wave of the future. He eagerly sought a merger partner for United Airlines, while simultaneously breaking down the No. 2 airline into pieces for sale.

Tilton proposed in August 2007 the sale of UAL’s maintenance division, including its heavy maintenance base in San Francisco, which employs more than 4,000 mechanics. Shortly thereafter, UAL also announced plans to sell off its profitable Mileage Plus frequent flier program.

“United should be run like a company, not a tag sale,” Hoffa said.

United Airline mechanics are in the midst of voting to switch representation to the Teamsters from the Airline Mechanics Fraternal Association. The voting period ends March 31.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. There are 40,000 Teamsters airline employees, including more than 9,000 mechanics and related at 11 airlines.