AMFA Local 9 LEC Expresses 'No Confidence' in UAL Board Nominees.

SAN FRANCISCO -- The Aircraft Mechanics Fraternal Association (AMFA) Local 9 Executive Council (LEC) voted unanimously to withhold support from the United Airlines board of directors on shares that Local 9 owns. The Local owns 100 shares of United Airlines (NASDAQ:UAUA) based on a decision made by the members in 2004.

"This board of directors deserves a vote of 'no confidence' from employees and shareholders, as it ignores the sacrifices of employees while it compensates senior executives with unwarranted bonuses," said Joseph Prisco, AMFA Local 9 President.

AMFA joins fellow Union Coalition at United Airlines members, the Air Line Pilots Association and the Association Of Flight Attendants, in strongly urging any of its members that hold UAL stock to "vote to withhold" in the Board of Directors election.

"This ten-member board rewarded the senior executives at UAL with astronomical pay packages and bonuses," Prisco said. "The board quickly forgot about the company's call for 'shared sacrifice and shared rewards' during a three year plus bankruptcy itinerary."

"The board had no problem proposing the elimination of pensions during bankruptcy," according to Prisco. "Now the board lavishly awarded CEO Glenn Tilton with $39.7 million in 2006, a combination of pay, stock, and stock options. This excessive reward of senior management contrasts sharply with the rank-and-file employees who endured cuts to pay, benefits, and work rules during one of the longest and most expensive bankruptcies ever.

"This company, led by Glenn Tilton, Chief Operating Officer Pete McDonald and other senior executives, entered bankruptcy in 2002 and stripped its employees of decades of hard-won gains. Over 38 months of bankruptcy saw United force its employees through two rounds of devastating cuts to pay and benefits.

"Now that the blood, sweat, and toil of employees produce a modest 2006 profit, this board over-reacts and grants lucrative pay and bonuses to executives that act entitled," he said.

"UAL's executives rationalize their huge bonuses due to a high percentage of their pay being 'at risk,'" Prisco added. "Employees learned a hard lesson during bankruptcy that large chunks of employee pay, including pensions, were indeed 'at risk.' These compensation losses were extracted under the duress of bankruptcy with a gun to the head of employees."

According to United for a Fair Economy (UFE), if the minimum wage had risen at the same rate as CEO pay from 1990 to 2005, the 2005 minimum wage would have risen to $22.61 per hour instead of the actual $5.15 per hour. UFE is a national, independent, nonpartisan, nonprofit organization.

AMFA Local 9 encourages all United Airlines employees, many of whom hold UAL stock in 401(k) plans, to "vote to withhold" in the Board of Directors election.

Local 9 Represents over 3000 Mechanics at United Airlines San Francisco Maintenance Center. It is the largest AMFA Local.