United Airline employees feel betrayed over the airline?s decision to cutback on retiree benefits. The airline originally said that only workers retiring after July 1 would receive reduced medical benefits, but in January they announced that all retirees would be expected to pay a greater share of their medical benefits, regardless of retirement date. United's chief financial officer, Jake Brace, said that the decision was necessary to save the airline from bankruptcy. However, the decision has also led to bad morale that could hurt the company.
See "Retiree benefit cutbacks threaten United recovery", Melissa Allison, Chicago Tribune, March 2, 2004