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 CHICAGO, Sept. 30 /PRNewswire/ -- The following was issued today by the Association of Flight Attendants, AFL-CIO:
 In a classic penny-wise and pound-foolish move United Airlines CEO Stephen Wolf squelched promising negotiations with the United Airlines Union Coalition to buy a majority stake in the nation's second largest airline by opening a flight attendant base in Taipei, Taiwan. The opening of this base on Sept. 30 will export hundreds of flight attendant jobs that had previously been filled by U.S. citizens.
 In addition to the opening of the Taipei base, United advised the Association of Flight Attendants, AFL-CIO (AFA), the union representing the more than 19,000 UAL flight attendants, of its intention to open additional flight attendant domiciles in Hong Kong, Seoul, Korea and/or Manila, Philippines, which will eventually lead to the loss of thousands of jobs. In response to UAL's decision to revert to business as usual, AFA has terminated its participation in the negotiations.
 According to AFA dramatic progress had been made in the negotiations which had been proceeding on United's commitment to maintain the status quo and not open new foreign domiciles during the explorations of the ESOP. AFA has expressed vocal opposition to the opening of foreign domiciles since UAL began the practice in 1991.
 Kevin Lum, AFA master executive council president said, "The Coalition offer was the vision of the nineties, but this is typical management of the seventies." He continued, "While Wolf publicly embraced a 90's vision of an employee-shareholder partnership that can compete in any market, neither he nor (UAL CFO) Jack Pope can rise above their natural inclination to treat employees as is no wonder United's performance has been disappointing under their stewardship."
 During three months of negotiations the Union Coalition, comprised of the three principal unions at United -- the Airline Pilots' Association (ALPA), the International Association of Machinists (IAM) and AFA, had offered to reduce wages in excess of $3 billion over five years and give United the unprecedented authority to create an "airline within an airline" which would provide low-fare, no frills service and labor costs that would be competitive with carriers such as Southwest Airlines.
 AFA had offered wage reductions and work rule changes that would have allowed United to effectively compete with Southwest and reduce labor costs by more than $600 million over five years.
 Wolf's decision to reject the AFA contribution dooms the contemplated transaction. The action is surprising because UAL had delayed the Taipei domicile opening three times as the talks progressed. Now that real progress has been made, Wolf repudiated the process and turned his back on an opportunity to create value for United's shareholders and employees.
 The Association of Flight Attendants, AFL-CIO represents 31,000 flight attendants at 19 U.S. based carriers.
 -0- 9/30/93
 /CONTACT: Bobbie Pilkington of the Association of Flight Attendants, AFL-CIO, 708-292-7170/

CO: Association of Flight Attendants, AFL-CIO; United Airlines ST: Illinois IN: AIR SU:

LD -- NY011 -- 7072 09/30/93 07:30 EDT
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Publication:PR Newswire
Date:Sep 30, 1993

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