United-Continental Merger
(excerpt from full brief) ... As it was also the first week of merger that created the New United, we were most interested in seeing if the company’s approach to reaching an agreement had changed. No new, or additional, members of the company have joined our talks.
The company did respond to most of our proposals and while we did not reach agreement on them the discussion that followed their response has opened up some possible opportunities to resolve some of the issues that we see as quality of life improvements and the company views as economic cost items.
The company did not include wages in their response to our proposals, at this time.
The beginning of the week was spent reviewing and evaluating the newly announced tentative agreement between the IAM and Continental covering the Flight Attendant workforce. While the new agreement improves F/A’s wages, it appears that the main focus of the settlement provides job protection for IAM-represented Continental Flight Attendants. It also provides a way for Continental F/A’s to work through the integration of the two groups without a loss of jobs and allow them to negotiate a contract that will apply to all F/A’s shortly after all representation issues are completed. full brief
It’s Official
United Airlines and Continental Airlines today officially merged and became United-Continental Holdings, Inc., an umbrella company that will operate the two airlines separately until they integrate operations.
“It will be some time before passengers and employee see any significant changes,” said IAM General Vice President Robert Roach, Jr. “Complete operational integration and blending of employee groups will not occur until union representation issues are resolved."
The IAM represents more than 19,000 United Airlines North American employees in seven classifications. The IAM also represents Continental Airlines’ 9,500 Flight Attendants and 250 Flight Attendants at Continental’s wholly-owned subsidiary Continental Micronesia.
Also this week, the IAM announced a tentative agreement on a new interim contract for Flight Attendants at Continental Airlines. The 26-month transition agreement contains specific merger-related protections in addition to increased wages and improved job-security provisions.
Negotiations are continuing for IAM members at United Airlines.
Merger: UAL pushes mediocre pay for employees, while rewarding executives, shareholders, even cities
Print Version
The shareholders of both Continental and United have voted to go forward with the merger of the two airlines as originally outlined.
This means the Continental shareholders were paid a premium for each share they owned, and United shareholders end up owning 55% of the new airline.
Executives of both companies will begin receiving their portions of the hundreds of millions of dollars in cash and future stock set aside on their behalf by the Boards of Directors either as bonus payments for staying with the new airline or as parting gifts for leaving. Even the State of Ohio is now in line to receive $20 million if and when the new United downsizes the Cleveland hub operation.
Almost everyone involved in this transaction has enriched themselves,
with one notable exception – the employees.
There are still several steps that must be completed before the merger becomes a functional reality and it is expected to take most of next year before a fully integrated operation is complete. While none of them threaten to overturn the shareholder action, the speed with which they are completed will impact the corporation’s ability to truly become the world’s largest airline with the greatest revenue. If their objective is to become the world’s greatest airline with the largest revenue , the new airline must rely on the employees.
Mediated Talks
Negotiations among all groups continue, especially the IAM. We have again been meeting with the Company’s negotiators this past week hoping to push these talks closer to a conclusion. While the discussions were extremely serious and dealt with the issues most important to our members – improved compensation, benefits, and job security – no progress was made. Neither side has modified their positions on any issues.
The IAM’s goal of achieving an industry leading agreement has not changed.
The company’s position that a new contract must be “competitive” (average)
with other carriers has not changed.
The recently announced tentative agreement between Continental and the International Brotherhood of Teamsters (IBT) is an indication that when both sides determine to reach an agreement it can be done. The improvements or changes to their existing contract are issues only the Continental IBT members can determine are acceptable and will be decided by their votes for ratification or rejection. The value this agreement should have for us at United is to see that our issues are the same as Continental employees’ concerns – wages, benefits, and security. As we move towards an integrated workforce that is important to understand.
We will continue our discussions with United during the coming week.
Organizing
District 141 and the Transportation Department of our International recently met at the Winpisinger Training Center to continue discussing and formulating plans to successfully address the employee issues created by this merger. The main focus has been to develop a communication program specifically for the IAM members at United. Representatives from across the system from all work groups and station size are working on this. In addition, we have included District representatives from US Airways in these meetings so that the full force of our District is focused on our membership. The Merger Team will be reaching out to each station’s leadership – the Local Lodge Officers, Local Committees, and Stewards, to become active participants in this work. They, in turn, will be looking for additional help from members not currently active in our Union.
Convention
Our mandated annual convention will be held the last week of September. We are looking forward to this opportunity to bring union activists from all airlines and locations in our District together to work on the necessary collective action needed by us all for the next year. A full report of the actions generated by the delegates will be given in the Messenger.
Shareholders Approve
United/Continental Merger
Shareholders at United and Continental Airlines today voted to approve the $3 billion merger proposal that will create the world’s largest airline. The vote comes less than five weeks after federal regulators gave the merger antitrust approval.
When the integration process has been substantially advanced for each classification, employee representatives can apply to the National Mediation Board (NMB) for separate “single carrier” rulings for each classification. Following each single carrier ruling, the NMB will schedule union representation elections for that classification. The schedule of NMB rulings and elections will depend on many factors, including the rate of operational integration for each classification.
“Now that the executives and shareholders have taken care of themselves it is time to ensure the future of IAM members,” said District 141 President Rich Delaney. “Our efforts will focus on reaching the long overdue, progressive contracts our members deserve.”
“The IAM will continue to meet with lawmakers and with representatives of the merged entity to ensure that employee concerns are acknowledged and addressed as the process moves forward,” said IAM District 142 President Tom Higginbotham. “It was employee sacrifices that provided the means for this merger to be consummated, and that fact must not be dismissed or overlooked.”
“This merger is far from being completed,” said General Vice President Robert Roach, Jr. “The task of integrating flight operations, reservations, ticketing, airport operations and obtaining FAA single operating certificates is just beginning.”
DOJ approval, coupled with swapping Newark slots with Southwest, “does not satisfy IAM concerns,” says GVP Roach
DOJ Approves Continental-United Merger
The Department of Justice (DOJ) today cleared the United-Continental merger of any anti-trust issues, giving the merger regulatory approval.
"It is clear by the simultaneous announcements of leasing slots in Newark to Southwest Airlines and the DOJ clearing this transaction that United/Continental was attempting to satisfy the IAM's concerns expressed at our meeting with the DOJ regarding the loss of jobs as a result of this merger," said IAM General Vice President Robert Roach, Jr. "However this does not satisfy the IAM's concerns about the potential loss of jobs."
"The IAM has raised our concerns before Congress, various government agencies and at the bargaining table," said Roach. "We will continue meeting with Congress, Governors, State Legislators and any other party to protect the interests of all the employees that could be affected by this transaction."
The merger must still be approved by each carrier's shareholders. The airlines expect the transaction to close by October 1, 2010.
Shareholder Blessing Likely
United and Continental have scheduled shareholder votes regarding the proposed merger for September 17th. Both airlines will vote separately but on the same day so that neither vote influences the other. All signs point to the acceptance of the merger by shareholders.
Nonetheless, the IAM continues to try to make our case on behalf of the employees. On August 18th GVP Roach, District 142 President Tom Higginbotham, myself, and members of GVP Roach’s staff met with Assistant Attorney General Christine Varney and staff members of the Department of Justice Anti-trust Division to impress on them the concerns we have of potential impact to employees of both airlines after a merger.
This was the most recent of several meetings IAM representatives have held with Congressional and Senatorial Committees charged with overseeing this merger. In addition, we have met with the Pension Benefit Guarantee Corporation previously to talk about our issues of job security and pension protection.
It is interesting to note that in every meeting I have attended regarding the merger, we are told the IAM is the only union that has addressed the issues with them.
“Our concerns are only over how our Members, and our future Members, will be treated,” says PDGC Delaney.
‘Neither support
nor oppose’
The IAM has told both United and Continental, in addition to the above named governmental groups, that we neither support nor oppose the planned business transaction of the merger. Our concerns are only over how our Members, and our future Members, will be treated. Members that have received proxy ballots are free to vote their shares in the way they personally feel about the merger.
On August 24th the IAM petitioned the National Mediation Board to conduct a representation election for the Continental Airlines Ground Instructors. The Members of this group of Continental employees, that perform similar work to United’s Fleet Technical Instructors and Emergency Procedure Instructors, have requested IAM representation, regardless of whether or not the merger is successful.
District 141 Organizing is actively talking to several different groups at Continental Airlines that have contacted us for information, and we expect other elections to be held before the integration of the two airlines is complete.
A voice in the merger
Today, the Machinists Union filed for an election for Continental's Flight Technical Instructors.
“Congratulations to the Continental Flight Technical Instructors for taking the first necessary step towards securing a voice in this merge,” says 141 Director of Organizing, Tim Nelson. Verne Luxemburg, Russ Allen, and Kevin Martin have all sacrificed their time to lead District 141’s organizing efforts to secure representation for this group of Continental employees.
‘Contract-like’ policies
Read the full brief | Comparing and contrasting the two carriers approaches to the same issues are part of United Airlines negotiations.
This past week’s approval by the European Union of United-Continental’s proposed international operations brings closer to reality the legal requirements of the United-Continental merger.
With that, discussions over job protection and seniority usage become part of the conversation.
Also part of those talks are the differences between the IAM’s contract with United and “contract-like” policies at Continental. Vacation accrual and usage, holidays, and overtime are included in these talks.
Read the full brief
European commission okays United-Continental merger
In an indication of how quickly the United-Continental merger is moving, the European Commission this week gave its approval to the $3 billion acquisition, saying they found minimum overlap on trans-Atlantic routes flown by the two carriers.
The “unconditional clearance” from European Union regulators is not a pre-condition for approval in the U.S., where the deal is under review by U.S. Justice Department officials and must also be approved by shareholders of both carriers.
Who’s in, who’s out, and how much did it cost?
Additional merger-related news this week included roster of senior management for the combined carrier.
IN:
Five high posts on the Continental Airlines side are
Financial—Zane Rowe, Communications—Nene Foxhall, Marketing—Jim Compton, Labor—Mike Bonds, and CEO—Jeff Smisek.
On the UAL Corporation side
OPS—McDonald, Info—Keith Halbert, Legal—Tom Sabatino, Loyalty (Mileage Plus)—Jeff Foland.
Tilton clings on as non-executive chairman for about two years.
An airline analyst called the mix, “reasonable,” noting that freshened-up labor relations on the United side couldn’t hurt.
OUT:
Atkinson (UAL) — $3.6 million severance,
Mikells (UAL) — $4.3 million
Tague (UAL) — $5.3 million
Moore (UAL) — undisclosed amount
source: The Houston Chronicle, based on June with the Securities and Exchange Commission.
Comparing Continental’s PCE ‘contract’
Follow up work regarding the United/Continental merger is continuing. Members of the District 141 Merger Team, who met two weeks ago at the Winpisinger Center, have begun fundamental work.
Several stations have already placed merger and solidarity information on web sites and Facebook pages. We encourage all Members to find these sites, including the District 141 website at iam141.org, and join the communication network.
District 141 Organizing is collecting information relating to all aspects of the proposed merger. That includes comparisons of our current Agreements with the Continental Employee Handbook, and with available Teamster contracts within the airlines.
This information will be published in several different formats but it will be shared as quickly as possible with those Members who have indicated they want to receive it personally. So please take a minute to assure that District 141 has your current, correct e-mail address.
Delaney addresses Members during the merger summit meeting, the main subject of this week's update below
Super sizing carriers
District 141 officers and Local Lodge representatives met at the IAM’s training center to formally begin work on many aspects of the proposed merger between United and Continental airlines. This work was part of an overall summit meeting, called by GVP Roach, to bring people from all Transportation districts together to work jointly on the future of union represented employment within the airline industry.
The upcoming representation election at Delta is of crucial importance and concern. A presentation by the IAM Legal Department explained the change in election rules recently enacted by the National Mediation Board. The implications of this rule change, and how it will be handled during the Delta election, will impact and inform District 141 in the future campaign at United/Continental.
All labor organizations see the rule change as a positive. It does set the stage for fair elections, but the IAM emphasized to attendees that this is not the only change needing enactment. The IAM noted that we are the leading organization calling for airline industry re-regulation. We believe re-regulation will lead to a more stable environment, encourage career level airline jobs, and diminish the trend towards part time workers and vendors. | top
Continental on ‘Continental culture’
The initial work of District 141’s merger team focused on learning as much as possible about Continental Airlines, both as a company and from employees’ points of view.
Our group was addressed by senior vice presidents of both carriers, including Doug McKeen, United, and Mike Bonds, Continental. We got the companies’ views of what the proposed merger means to them. They outlined the time line they hope to follow throughout the approval process leading to a fully integrated airline in 2012.
An open question and answer period allowed us to question them about aspects of the merger which are of most concern to our Members. Although most questions concerned how the operation of the new combined carrier would be handled, such as the status of stations and hub operations, questions about how the employees would be treated were also asked.
Concerns about conflicting company policies and how they would be resolved were raised. An example was employee pass travel, and the differences between existing policies. Company representatives said there would be survey type involvement of employees to help shape any new policy. When pressed, they agreed that the involvement of employee representatives (unions from both carriers and all classifications) would be part of the decision making process.
It is significant to note that meetings were held jointly with different District reps, including representatives of Continental flight attendants, so we were not hearing something that may be different than what Continental employees are being told.
In a separate meeting, the United reps heard from Continental employees. We got a background and basic understanding of the Continental employees’ view of their company. It was interesting to hear that most Continental employees have a high regard for their CEO and believe he, and his predecessor, established a
connection with the employees during their tough times — a connection that continued as they recovered from bankruptcies and economic downturns.
The stark differences between management styles were obvious. | top
adjacent —
The Winpisinger Education Center in Placid Harbor symbolizes The Machinist commitment to labor education
Merger/Representation Meeting This Week
The Transportation Department of the IAM has called for a combination merger/representation summit for this week.
Members of District 141 will be receiving training from the staff of the Winpisinger Center on issues relating to the proposed United/Continental merger. Part of the agenda will be to meet with upper management of both airlines to hear directly from them what they anticipate the merger will have on employees. Other Transportation District Members attending this summit will focus on the Delta vote.
Delta/Northwest Representation Elections
This past week two historical events happened.
First, the National Mediation Board rule change, regarding how representation elections are conducted within the airline industry, was enacted. This change will allow future elections to be decided by a majority of the votes cast, rather than counting employees who choose not to vote in the election as votes against a Union. While this change does not guarantee success in the future, it gives hope that in a fair election employees will be more willing to participate in the process and vote for Union representation.
Immediately after the rule change became effective, the IAM began a process to hold an election for the Delta workforce.
The importance of this election cannot be over emphasized. Airline employees, whether they work for Delta or any other carrier, will be affected by the outcome of this vote. It is in all of our interests to actively support the IAM Members formerly working for Northwest Airlines who are fighting to keep their right of representation.
Merger Meeting at Placid Harbor
We have been working with the Transportation Department of our International to prepare for the likely merger of United and Continental. The proposed merger generates many issues involving the combining of the two companies work forces – seniority integration, union representation, contractual transition – that need to be addressed sooner rather than later. While the financial merger of the airlines may be completed by the end of the year, the employee combination issues are expected to take years to complete.
District 141 has put together a Merger Team that includes both District Officers and Local representatives to begin focusing on aspects of the merger that impact our membership. During the week of July 6, the Merger Team will meet at our International’s Placid Harbor training facility to start the process. The week will be a combination of training in specific areas of communication and strengthening our contacts with our current Members and putting together a plan to reach out to Continental employees, both unionized and unorganized to bring them into the IAM and reduce the roadblocks to a successful integration. Representatives from local lodges and other transportation districts will also be meeting during that week to continue the important work of successfully organizing Delta employees.
Oberstar is asked daily – When do we re-regulate?
June 18, 2010 — After two days of Congressional hearings into the proposed merger between United Airlines and Continental Airlines, many in Congress are questioning whether further airline consolidation is in the best interest of employees, passengers and taxpayers.
“United and Continental are repeating a strategic move that many airlines before them have made but that has brought sustained success to none,” said House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) who cautioned the airline’s executives that he would draft legislation to re-regulate the airline industry if the Department of Justice approved the United-Continental merger.
“Hardly a day passes where I don’t walk out on the (house) floor that someone asks me, ‘When are we going to re-regulate the airlines?’” said Oberstar after the first of three hearings on the proposed merger.
General Vice President Robert Roach, Jr., who was the only labor leader to be invited to speak at all three hearings, repeated in his testimony the IAM’s call for re-regulation.
“The Machinists Union opposed de-regulation in the 1970’s and have been calling for re-regulation ever since,” said GVP Roach. “It is clear that airline deregulation has failed to deliver on its promises of a stable and profitable industry. The argument of industry instability that United and Continental are making to support their merger is the same argument for re-regulation, with a major distinction – more than 30 years of airline consolidation has proven that mergers have not helped the industry.”
“Some industries are too vital to our nation’s commerce to be allowed to regulate themselves,” added Roach. "One just needs to remember the billions of taxpayer dollars that went to bail out the financial industry and millions of barrels of oil floating in the Gulf of Mexico to recognize that some industries are too essential to the United States' economy to be left to their own destructive ways.”
The airline industry generates $1.4 trillion in economic activity and contributes $692 billion dollars per year to the U.S. Gross Domestic Product.
GVP Roach: Deregulation failed
June 17, 2010 — Transportation GVP Robert Roach, Jr. testified before the Senate Committee on Commerce, Science and Transportation and called for re-regulation of the airline industry.
“It is clear that airline deregulation has failed to deliver on its promises of a stable and profitable industry,” said Roach. “Airline business plans today focus on lowering standards, eliminating services and reducing ticket prices to the bone to put competitors out of business, making a profitable industry impossible.”
Roach cited Government Accountability Office (GAO) estimates that median ticket prices have dropped nearly 40 percent since 1980, while the costs of aircraft, airport leases and fuel have increased dramatically.
“Some industries are too critical to the United States to be allowed to regulate themselves,” said Roach. “The airline industry drives $1.4 trillion in economic activity and contributes $692 billion per year to the Gross Domestic Product. It is too vital to the nation’s commerce to be ignored, taken for granted or left to its own destructive ways.”
The outsourcing of Flight 3407
WKBW News, Buffalo, June 17, 2010 — Investigators have concluded that pilot error and a lack of training were to blame in the February crash of Continental Flight 3407, whose operation was outsourced to Colgan Air. Continental CEO Jeff Smisek agrees, but says it’s “the F.A.A.’s responsibility” — not his to make sure pilots of regional airlines receive proper training.
When asked why his company does not better regulate the training of pilots hired by its sub-contractors, WKBW News reports that Smisek responded by saying, “The training of pilots across the globe is too great a responsibility for Continental Airlines we do not have the resources.”
Machinists Union questions
United/Continental merger fallout
June 16, 2010 — IAM International Association of Machinists and Aerospace Workers' (IAM) General Vice President Robert Roach, Jr. will testify before three Congressional Committees this week about the proposed merger between United Airlines and Continental Airlines.
“The IAM is concerned that the new entity may be too big to succeed,” said Roach. “Failure of such a large entity could be disastrous to employees, the industry and the national economy. Our concern is for the entire industry, and we do not believe mergers alone provide the answers. The only way to establish an air transportation industry that is both competitive and profitable is through some form of re-regulation.”
Two June 16, 2010 hearings will be before the House Committee on Transportation and Infrastructure, as well as the Committee on the Judiciary. The IAM will also testify at a Senate Commerce, Science and Transportation Committee hearing on June 17, 2010.
The Machinists Union represents 26,000 workers at the two carriers. The IAM's complete testimony is available at www.goiam.org/mergers.
“As this merger proposal moves forward, the Machinists Union asks regulators to take the merger’s impact on employees into consideration,” said Roach. “A combined carrier must offer employees more stability and opportunity than are available at the two independent airlines.”
The IAM 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. The IAM also 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.
The Machinists Union is the largest airline union in North America, representing more than 110,000 airline industry workers.
Machinists Union to Testify at
United/Continental Merger Hearings
IAM, June 11, 2010 — There are three Congressional hearings scheduled for the week of June 14, 2010 to investigate the proposed merger between United Airlines and Continental Airlines. The Machinists Union has been invited to testify at all three hearings to ensure the concern of 26,000 IAM members at Continental and United are heard.
IAM members in the Washington, D.C. area, as well as members who are able to fly in for the hearings, are welcome to attend. Members are encouraged to arrive early to be admitted into the hearing room and wear their uniforms and/or IAM apparel and union pins.
The three hearings are:
- U.S. House of Representatives
Committee on Transportation and Infrastructure’s Subcommittee on Aviation
Date: June 16, 2010
Time: 9:30 a.m.
Location: Room 2167 of the Rayburn House Office Building | Google Map
- U.S. House of Representatives
Committee on the Judiciary
Date: June 16, 2010
Time: 2:00 p.m.
Location: Room 2141 of the Rayburn House Office Building | Google Map
- United States Senate
Committee on Commerce, Science & Transportation
Date: June 17, 2010
Time:10:00 a.m.
Location: Room 253 of the Russell Senate Office Building Google Map
IAM, PBGC Discuss UAL/Continental Pensions
IAM Machinists’ Union representatives met with acting director of the Pension Benefit Guaranty Corporation (PBGC) Vince Snowbarger and his staff this week to discuss the impact a merger between United Airlines and Continental Airlines could have on employee pension plans.
General Vice President Robert Roach, Jr., District 141 President Rich Delaney, District 142 President Tom Higginbotham and members of the IAM’s legal and strategic resources departments described the importance of preserving our Member’s defined benefit pension plans and retirement security.
“This meeting was part of a continuing process to address our membership’s concerns,” said GVP Roach. “The IAM will take whatever steps necessary to protect our Members."
Continental ramp service, stock clerks and public contact employees all participate in a Continental company-sponsored defined benefit pension plan, while their IAM-represented counterparts at United participate in the multi-employer IAM National Pension Plan (NPP). Continental’s IAM-represented flight attendants also participate in one of Continental’s defined benefit pension plans and have negotiated the IAM NPP as a contingency plan. United flight attendants do not currently have a defined benefit pension plan.
“The Machinists Union will not allow pensions to become a causality of this merger,” said Higginbotham.
“Pensions are not a reward,” added Delaney. “Our Members have earned their pensions over a period of decades.”
The PBGC supplied general responses to the IAM’s questions, but would not address UAL/Continental specifically. They did, however, advise that we should discuss any proposals concerning pensions with the PBGC before any agreements are reached. As the merger proposal moves forward, the IAM and PBGC will remain in touch to discuss developments that may occur.
United, Continental Meet with Machinists Union
IAM leaders met this week in Washington, D.C. with senior management representatives from Continental Airlines and United Airlines to discuss their proposed merger’s potential impact on pensions, job security and union representation for 26,000 IAM members at both carriers.
Taking part in the meeting were Transportation GVP Robert Roach, Jr., District 141 President Rich Delaney, District 142 President Tom Higginbotham, and staff from the IAM’s transportation, legal and strategic resources departments.
The airlines made a joint presentation providing general details that are already publicly available, including their aggressive timeline of events that anticipates operational integration in the first half of 2012. The airlines, however, admitted that the timeline could fluctuate and was not set in stone.
The carriers alleged they do not expect major reductions in front-line employees as a result of the merger, but the IAM insisted that jobs needed to be guaranteed within collective bargaining agreements. Another necessity for job security is a viable and competitive employer, and the IAM needs to be convinced that the business plan for a merged carrier will be successful. The IAM will closely monitor the new carrier’s business plan to determine if the merger would create an airline that is too big and unmanageable to succeed.
The Machinists Union made it clear that this merger cannot result in the loss of anyone’s, seniority, wages or defined benefit pensions. A combined carrier must offer employees more stability and opportunity than two independent airlines.
The Machinists Union pressed for specific details about how the two airlines intend to integrate pensions at a combined carrier. One particular concern was United’s termination of their company-sponsored pension plans and their Pension benefit Guaranty Corporation agreement that prohibits United from sponsoring a single-employer pension plan until 2015.
Continental flight attendants and ground employees participate in Continental’s company-sponsored defined benefit pension plan, while IAM-represented United employees earn benefits in the IAM National Pension Plan. United’s flight attendants do not have a defined benefit pension plan.
The carriers did not have an answer when asked if all employees would have defined benefit pension plans following a merger. The carriers admitted that harmonizing pensions was a complex issue, and although they had given it much thought, they did not know how it would be resolved at this time. They indicated that they would be looking toward the unions that obtain representation rights for solutions to the pension issue.
The Machinists Union was the only union to successfully negotiate new defined benefit pension plans for United employees in bankruptcy, and that option will be available for IAM-represented employees in negotiations after the merger is completed. The IAM believes all employees deserve traditional pension plans.
The airlines advised that they were creating integration committees, but on the IAM’s insistence agreed that such committees will have no authority over matters that were germane to collective bargaining, such as combining the workforce, integrating seniority, harmonizing pensions, or addressing wage, benefit or work rule disparities. The carriers agreed that such issues cannot be addressed until the National Mediation Board rules that the two airlines are operating as a single carrier and union representation issues are resolved.
The Machinists Union advised the carriers that they must work hard to blend the two airlines’ differing corporate cultures, and the best way to do that is by working with the IAM, which has decades-long of relationships with each carrier.
While the airlines did not provide immediate answers to the IAM’s questions, the meeting did result in establishing a communications structure between the IAM and the two companies to deal with merger-related issues. The companies agreed to discuss the issues raised by the IAM and respond when they have answers available.
//
SIGNED//
Robert Roach, Jr., GENERAL VICE PRESIDENT
Richard Delaney, DISTRICT LODGE 141 P/DGC
Tom Higginbotham, DISTRICT LODGE 142 P/DGC