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Author: Thinkertoo One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 610  
Subject: Unions Date: 11/9/2001 9:07 AM
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Recommendations: 4
ProAMT,

I don't watch this board very frequently, so I missed your post (No.
334) when it first came out. I wanted to thank you for the insight you 
shared with us and for the informative link. Your note documents some of 
the problems with unions.

I was disappointed, however, that there was no remorse or apology for 
the work slowdown staged by mechanics last year. Hundreds of flights 
were cancelled because of last-minute mechanical failures. Thousands of 
passengers were not only inconvenienced, but also missed meetings and 
connecting flights and had to wait hours for the next flight. Are we to 
believe that it was purely coincidental that this ocurred when mechanics 
were fighting with UAL?

First, pilots and mechanics chased off thousands of customers with work 
slowdowns. Then, the slowing economy eliminated more customers; not just 
because fewer were flying, but many were finding it easier to schedule 
other airlines. Now, September 11th comes along and large number of 
passengers are afraid to fly. Don't assume that the terrorist's attacks 
were the sole cause of the current problems. UAL had a doomed formula 
before this occrred.

The situation at UAL is serious. Please review this article for an 
update: 

http://www.quicken.com/investments/news/cbsmw/notemplates/frame.dcg?symbol=UAL&ntlink=/relocate/co=quotes_cbs;http://cbs.marketwatch.com/news/intuit/story.asp?guid=%7B6651C707%2D74FB%2D4E64%2D89FF%2D7BEF1722AE48%7D&siteid=intuit&dist=intuit&792716225

The first thing Creighton, the new CEO, did was to call the unions in 
and open the books to show the desparate situation. This is the same 
thing that Goodwyn, the previous CEO, was doing. Creighton is more 
tactful, but the message is the same. 

As an investor, I see a company that is 55% owned by the employees, who 
are operating the company for their personal benefit rather than the 
traditional maximizing return for shareholders. As a taxpayer, I am not 
interested in dumping more money into a company that has a doomed 
formula. That leaves employees, who are the initial cause of this 
situation. It also leaves creditors, who are going to lose lots.
Unions must step up to the plate and right the wrong that they have 
caused first. 

If UAL does not survive, I hope that you personally are not hurt and 
that you are able to land on your feet.

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