Transcripts

United Shareholders Meet United Picketers

SUSIE GHARIB: United Airlines shareholders got an unexpected greeting today at the company's annual meeting, union workers with picket signs demanding better wages and benefits. As Diane Eastabrook reports, those informational picket lines could become more common for carriers if profits continue to fly high.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: Frustrated pilots, flight attendants and mechanics paraded outside United Airlines annual meeting today in Chicago. The unions are furious that United Chairman and CEO Glen Tilton recently negotiated a new contract and a heftier pay package. The labor groups are still working at reduced wages negotiated when United was in bankruptcy. Veteran United airlines pilot Herb Hunter calls it bad business.

HERB HUNTER, PILOT, UNITED AIRLINES: When Mr. Tilton's compensation package came out and it said $39.7 million and we're getting zip, it was just the last straw and so we just felt we had to make it public.

EASTABROOK: United emerged from bankruptcy early last year. During a three-year reorganization, the carrier slashed thousands of jobs, scrapped pensions and cut wages up to 50 percent for its hourly workers. The wage cuts United negotiated with its unions last another three years. But flight attendant Sara Nelson says United should return to the bargaining table sooner.

SARA NELSON, FLIGHT ATTENDANT, UNITED AIRLINES: These executives spoke consistently about shared sacrifice would equaled shared rewards. Now that they've renegotiated their contracts outside of bankruptcy and improved their lifestyle, we know that there is money to go around.

EASTABROOK: United had no comment today on the actions of its unions. But it isn't the only airline feeling heat from labor. Thousands of hourly workers at American, Delta and Northwest Airlines accepted pay and benefit cuts during the industry's recession after the 9/11 terrorist attacks. American Airline pilots are already demanding a 30 percent wage hike when they negotiate a new contract next year. Fitch Ratings airline analyst William Warlick says even though the airline industry was profitable last year, it is still struggling.

WILLIAM WARLICK, AIRLINE ANALYST, FITCH RATINGS: First quarter revenue trends were somewhat discouraging and so you might argue that the unions are coming at this at a very inopportune time for the industry, at a point when revenue may have peaked.

EASTABROOK: United's unions say they will continue to put pressure on the company to return to the bargaining table early, but they say that pressure will not include any actions that would disrupt the day to day operations of the carrier or its profits. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Chicago.