Machinists Warn of Obstacles to UAL/Continental Merger

May 3, 2010, Robert Roach —The International Association of Machinists and Aerospace Workers' (IAM) General Vice President Robert Roach, Jr. today issued the following statement in response to the proposed merger between United Airlines and Continental Airlines.

“A Continental/United combination must have what many past mergers failed to achieve: broad employee support. The Machinists will work closely with members of Congress and the Departments of Transportation and Justice to ensure that if a merger is approved, it will not be at the expense of workers at either carrier.

“The IAM’s Transportation Merger Team has been evaluating a possible United-Continental pairing since United Airlines exited bankruptcy in 2006. Our concerns include the impact of such a merger on the pensions, benefits, seniority and job security of employees at both carriers. We are concerned about the survivability of
the combined airline and the merger’s effects on passengers and the cities the airlines serve. As this process moves forward, these issues must be addressed to our members’ satisfaction.

“[It] must have what many past mergers
failed to achieve: broad employee support.”

With more than 26,000 Machinists Union members at both carriers, one way to avoid some of the mistakes of past airline mergers is to include the IAM very early in the process,” Mr. Roach concluded.

IAM District 141 represents 16,000 United Airlines Ramp, Stores, Public Contact, Fleet Technical Instructor, Maintenance Instructor, Security Guard and Food Service employees, and another 76 employees at United’s frequent-flyer program, Mileage Plus, Inc. More information about the IAM at United is available here on IAM141.org.

IAM District 142 represents Continental Airlines’ 9,500 Flight Attendants, 250 Flight Attendants at Continental’s wholly-owned subsidiary Continental Micronesia and 1,200 Flight Attendants at Continental and United regional partner ExpressJet Airlines. IAM Flight Attendant information is available at www.go142.org.
The latest information about the announced United/Continental merger is available at www.goiam.org/mergers and here on iam141.org/merger.

Merger updates are available through the Main Menu > Merger navigation bar, located throughout the IAM141.org web site.

The International Association of Machinists and Aerospace Worker | Volume 3, Issue 2

United, Continental Announce Merger

3AM, May 3, 2010, Rich Delaney — Today’s official announcement by United Airlines that they have agreed to merge with Continental Airlines was not unexpected but has caused a lot of concern by District 141 members regarding the future. It is important to understand that this announcement is the first step in what could be a lengthy process before any operational merger is complete. Both corporations’ shareholders must approve this transaction and then it must undergo review and scrutiny by both the Department of Transportation and the Dept. of Justice before it can become a reality.

The IAM has been researching and reviewing mergers within the airline industry, including the United/Continental possibility since 2006. Our concerns, our very serious concerns, involve our members’ security, pensions, and our contract.

It is easy to get distracted during this process by rumors and misinformation. For that reason, District 141 has established a Merger page here on IAM141.org, to begin to address the questions and concerns of our members. We have posted an initial set of Questions and Answers of likely questions. I encourage you to visit our website often, view the Merger page, and let us know what questions you would like to see answered. They will be included in future updates of the page.

As information becomes available we will communicate it as quickly as possible. I ask you to read our website, attend union meetings, and communicate with your Local and District representatives during this critical and historic period.

Fraternally, Richard Delaney, PDGC
District Lodge 141 | top