141 Update
District 141 has been engaged for the past two weeks in both contract negotiations with United Airlines and gathering information related to the proposed UAL/CO merger, and its possible impact on our Members.
SEPARATING CONTRACT TALKS FROM MERGER
United negotiations have been focused on seniority proposals. We have discussed these issues previously and we want to insure that the understandings we have already made will not be affected by the potential merging of work groups from Continental. We are still discussing issues of concern to District 141 Members, whether or not a merger occurs. Issues such as bidding rights within the PCE contract, and job descriptions in the Ramp & Stores Agreement are examples of what the past week’s discussions included. Scheduling proposals from both our Team and the company’s negotiators have also been reviewed and discussed. We anticipate that when we return to United negotiations later in June, the issues of compensation and benefits will be main topics.
CONTINENTAL MANAGEMENT
Meetings were held with senior management of both United and Continental to receive a better understanding of the scope of the proposed merger.
The meeting last week was reported in a joint bulletin from General Vice President Roach and is posted on iam141.org/merger. As GVP Roach noted, the presentation by the airlines had general information, most of which we were already aware. Discussions held after the formal presentation were more instructive. We were able to talk, for the first time, with Continental management and get a feel for how we will be able to work together, if necessary, in the future. The IAM’s concern early on is the protection of our Members and our union in any possible merger of the two airlines and it was encouraging to hear from the management group that they recognize the potential merger creates not just the world’s largest airline, it creates the world’s largest unionized airline.
BENEFITS, BANKRUPTCIES, CORPORATE WELFARE
One of the IAM’s major concerns regarding the airline industry’s push for consolidation and merger is the impact it has on Member benefits – especially retirement benefits.
Most employees within our industry have suffered through bankruptcies and other financial disasters. In most cases this has meant a termination or freezing of promised pensions. As the airlines crawl from the wreckage of bankruptcy to profitability, the retirement security of their employees is left behind.
In the past two weeks the IAM has been very active in speaking on behalf of both our retired Members and those of us still working who were relying on the commitments our airlines made to us for pension benefits. This past Tuesday, GVP Roach testified before the House Judiciary Subcommittee in support of revisions in the current bankruptcy code, and the passage of the Protecting Employees and Retirees in Business Bankruptcies Act of 2010.
The purpose of the proposed Act, and the goal of the IAM, is to close bankruptcy loopholes that allow corporations to use bankruptcy to terminate pension plans, change retirees insurance benefits, and still grant huge bonus payments to the top executive bosses and their board(s) of directors.
On Wednesday IAM representatives, including GVP Roach, District 142 President Tom Higginbotham representing IAM Members at Continental, and myself, met with the PBGC to outline our concerns about the current state of PBGC controlled pensions such as United’s and the limitations that may be in effect for future pension plans if the two airlines merge. This is an area that is going to take a lot of review and discussion with the PBGC before any negotiations with the separate companies would take place.
On Thursday of this week the first Senate hearing regarding the proposed merger was scheduled to begin. The CEO’s of both United and Continental, along with GVP Roach, were scheduled to testify. However, late Wednesday night the Senate postponed the hearing until after the Memorial Day recess. We were present and ready to tell our story to the senators and will be at every hearing in the future concerning the merger to speak on behalf of the working families that will be affected.
MERGER TEAM
Plans are underway to hold the first Merger Team meetings in July. All transportation districts will be putting together their teams. Local and district representatives will begin to work on the many different employee issues involved in this and any other merger.
A SIMPLE UP OR DOWN VOTE IN JEOPARDY
One of the most important issues that will be determined during the next few years is the question of union representation for all employees of a merged airline.
One important step towards that goal was made recently when the National Mediation Board announced a rule change for representation elections that would put union representation elections on the same basis as all other elections held in America – majority of votes cast determines the outcome.
The rule change was scheduled to go into effect June 10, 2010. Anti-worker airlines filed a claim in court seeking to have the rule reversed. The judge has now delayed the implementation of the change until at least June 30, 2010 before issuing a ruling. | print this update (115kb pdf)