United’s New Chief Tries to Calm Troops : Airlines: Greenwald visits L.A. on the heels of employee buyout. He encounters both enthusiasm and skepticism.
Two days after United Airlines parent UAL Corp. became the nation’s largest employee-controlled company, new UAL Chairman Gerald Greenwald arrived at Los Angeles International Airport on Thursday to meet and talk with his workers. They shook his hand, called him “partner” and praised his approachable manner.
“He saved a whole lot of jobs,” said Stan Macdonneil, 52, a ground crew worker. “We are going to make it work.”
But after Greenwald completed his 3 1/2-hour visit of United’s sprawling Los Angeles operation--part of a nationwide tour of major company facilities--many employees remained concerned about the risks and uncertainties they face in the unfamiliar world of employee ownership.
Under a plan approved by UAL shareholders Tuesday, workers are taking nearly $5 billion in wage and work-rule concessions in exchange for 55% ownership of the nation’s second-largest airline.
Employee ownership has failed to save several other carriers, and today’s cutthroat airline environment poses a substantial challenge to United and its employees, who now have more to lose if the carrier stumbles.
“I’m kind of skeptical,” said Chris Lemelle, a 27-year-old United aircraft mechanic who had opposed the buyout. “For this to work, you have to have a lot of communication between employees and a lot more dedication. We don’t have that here. It’s going to take some more time to win me over.”
Greenwald faced a variety of questions from ticket agents, department managers, pilots, baggage handlers and other employees. United employs about 75,000 people, including approximately 6,000 in the Los Angeles area.
The former Chrysler Corp. executive, who was handpicked by United’s pilots and machinists unions, talked about giving workers more authority, cutting layers of management and encouraging risk taking. He asked employees what they thought about increasing the cargo business or discussing safety issues in company advertising.
He also announced that United had selected John A. Edwardson, a former airline executive who is currently chief financial officer at Chicago-based Ameritech Corp., to serve as president. Former President John Pope and Chairman Stephen Wolf resigned Tuesday when the buyout was completed.
Greenwald also revealed a few more details about the United Shuttle, a new low-fare airline that Chicago-based UAL is forming to compete against low-cost carriers such as Southwest Airlines. Los Angeles will play a major role for United Shuttle, which will begin service Oct. 1 in several West Coast markets, including from Los Angeles to cities such as Sacramento, he said.
The new chairman said the company will also meet next week with negotiators for its 17,000-member flight attendants union, which has refused to join the employee buyout because of the company’s plan to expand overseas bases using foreign flight attendants.
However, for the most part, Greenwald’s statements and responses Thursday were short on detail, and he answered “I don’t know” to many questions.
“I just ask for your patience,” he told about 100 mechanics and other ground crew workers in an employee lounge. “I don’t expect you to believe everything I’ve said this morning.”
Despite the lack of specifics, many employees appeared enthusiastic about the buyout.
“We are taking a positive step toward the future,” said Joe Martinez, a 38-year-old payroll administrator. “When you are in charge, you take more pride in what you do. The stakes are higher for us.”
Flight attendant Kyla Schneider, 32, said employee ownership will help boost morale. “It’s very disconcerting when there are so many complaints about the company you are working for,” she said.
Many see employee control as the only way to avoid the fate of some other airlines that have laid off thousands of workers or closed entirely amid a deep industry slump.
“We have seen other airlines fail. We have seen all the turmoil,” said Charles Browden, 29, who fuels and unloads planes. “We are glad this came up before it happens to us.”
