Will CEO's resignation mean better contract for United staffers? - KUAM.com-KUAM News: On Air. Online. On Demand.

Will CEO's resignation mean better contract for United staffers?

Posted: Updated:

The president and CEO of United Airlines, Jeff Smisek, resigned today in connection with a federal corruption probe. United serves as Guam's largest carrier, but the surprise development is not expected to impact local operations, although Guam-based flight attendants are hoping the change in leadership will have a positive impact on their longstanding bid for a new contract.  

In a news release posted to its website, United said Smisek stepped down "In connection with a federal investigation associated with the Port Authority of New York and New Jersey."  The company said the investigations are ongoing and it continues to cooperate with the government.

Smisek has been at the helm since United's merger with Continental Airlines in 2010. The company also announced he was replaced effective immediately by United board director Oscar Munoz. According to the news release, Munoz most recently served as president and COO of CSX Corporation, an international transportation company.

The release quotes Munoz as saying, "In my years serving on the board, I have been impressed by the dedication and skill of my new coworkers. Together, we will make United the top-performing airline."

Meanwhile, spokesperson for Guam-based flight attendants Cynthia Iverson said she was surprised by the announcement. But she also expressed cautious optimism that the change in leadership might help resolve contract negotiations that have been dragging on for months, telling KUAM News, "I know that he has a very successful background. I think Gordon Bethune has spoken up that he's a hard worker, and we're still looking to discover who he really is and what his credentials are, but yes, we are hopeful. We have been stagnant for three years in negotiations and we're hopeful that Mr. Munoz is going to light a fire under the company's side of the negotiations, so we're able to get this done."

To draw attention to their issues, the flight attendants staged an international day of action last month. Iverson says they plan a similar event for October.

  • NEWS HEADLINESMore>>

  • Apuron denies rape allegation made by his nephew

    Apuron denies rape allegation made by his nephew

    He stands five times accused of clergy sexual abuse, the most recent allegation prompting a written response to Guam media.  In an e-mailed statement, Archbishop Anthony Apuron vehemently denies the allegation from his nephew, Mark Mafnas Apuron.  Earlier this month, 43-year-old Mark Apuron filed his lawsuit in the District Court of Guam alleging Archbishop Anthony Apuron raped him in the Chancery in 1990.  In his statement, the elder Apuron reports being sick after ano...More >>
    He stands five times accused of clergy sexual abuse, the most recent allegation prompting a written response to Guam media.  In an e-mailed statement, Archbishop Anthony Apuron vehemently denies the allegation from his nephew, Mark Mafnas Apuron.  Earlier this month, 43-year-old Mark Apuron filed his lawsuit in the District Court of Guam alleging Archbishop Anthony Apuron raped him in the Chancery in 1990.  In his statement, the elder Apuron reports being sick after ano...More >>
  • Elderly man hit while crossing the road

    Elderly man hit while crossing the road

    An 81-year-old man is in critical condition at Naval Hospital after being hit by a car in Mangilao at around 7:00pm on Wednesday. Police spokesperson AJ Balajadia says the man was crossing from the median into the inner lane along Route 10 when was struck by a blue 2009 Toyota Yaris being driven by a 59-year-old man from Yona. The incident occurred by 24 Hour Laundry.  The victim was unconscious but still breathing while being transported to NRMC. Balajadia says Guam Highway Pa...More >>
    An 81-year-old man is in critical condition at Naval Hospital after being hit by a car in Mangilao at around 7:00pm on Wednesday. Police spokesperson AJ Balajadia says the man was crossing from the median into the inner lane along Route 10 when was struck by a blue 2009 Toyota Yaris being driven by a 59-year-old man from Yona. The incident occurred by 24 Hour Laundry.  The victim was unconscious but still breathing while being transported to NRMC. Balajadia says Guam Highway Pa...More >>
  • Committee makes recommendation for disciplinary action against Espaldon

    Committee makes recommendation for disciplinary action against Espaldon

    Will Senator Jim Espaldon be removed from his leadership positions? That's now for his colleagues to decide. Resolution 239 had been placed on the session agenda. It details the ethics committee's recommendation for disciplinary action against Espaldon. Last September, they found him in violation of the code of ethics and standards. Espaldon was under investigation for his alleged involvement in a generator deal between the Commonwealth Utilities Corp. in the Northern Mariana Islands...More >>
    Will Senator Jim Espaldon be removed from his leadership positions? That's now for his colleagues to decide. Resolution 239 had been placed on the session agenda. It details the ethics committee's recommendation for disciplinary action against Espaldon. Last September, they found him in violation of the code of ethics and standards. Espaldon was under investigation for his alleged involvement in a generator deal between the Commonwealth Utilities Corp. in the Northern Mariana Islands...More >>
Powered by Frankly