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P.O. Box 45, Boeing Field
Seattle, Wn.  

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August 7, 1948

Mr. Eddie LePenske
Chairman, UAL Council #27
Seattle, Wn.

Subject: Supplement to letter of July 8, 1948
re: ALPA Group Insurance.

Dear Eddie:

It is perhaps not realized by most of us that United Air Lines has probably done as much, if not more, to help provide security for its employees than any other private company, either in or outside of the flying industry. We have a very liberal sick leave policy as well as group accident and health insurance. We have an excellent pension plan in comparison to most employees' pension plans. And last, but surely one of the most important to us, we have an excellent life insurance program. Why, then are we not satisfied, in fact proud of our complete coverage?

Let us try to evaluate the requisites of a good life insurance plan. It must be cheap enough so that adequate coverage can be procured. It must be underwritten by a dependable company so that we are sure that the funds will be available for our dependents in the event of premature death. And last, it must be permanent so that it is possible to maintain it throughout our lives without limitations.

Upon close examination, we find that all of the United's plans and policies for employee security, comply adequately with the first and second requisites, but fail miserably in the last. None of them, the accident policy, the pension plan, the sick leave, and the life insurance plan can be considered permanent. First, we must be an employee and continue to be an employee of United Air Lines to qualify. Second, even though we are employees, any or all of the plans can be cancelled at will by our company. Now this is not to be blamed on United, but it is a peculiar and perhaps necessary limitation of all employer-employee group plans as they are all the same in this respect. No, I'm afraid that we as individuals and ALPA as an organization are to blame. We have stood by and let our employers do the best they could to supply their employees with a measure of false security, and at the same time made us dependent on them to provide the means to care for our dependents in case of our early death. Employers have thus purchased themselves a large share of good employee satisfaction and loyalty and we have purchased some meaningless assurance.