United and AFA Make Progress In Negotiations
April 29, 2016
United and AFA continued NMB-supervised contract negotiations from April 21 through April 29 in Chicago.
As previously planned, AFA presented a seven-page comprehensive proposal on Thursday, April 21. The company was pleased to receive the first compensation proposal from the AFA negotiating committee, as it represents an important and critical milestone in the negotiating process. However, as has been the case with virtually every first comprehensive proposal received since the 1980s, the opening comprehensive proposal was significantly more costly than at American and Delta and would have a negative impact on United’s ability to operate the airline.
United is committed to providing an industry-leading agreement like the agreements recently ratified by ALPA pilots, IAM-represented ground employees and PAFCA dispatchers.
United presented a responsive comprehensive counter-proposal on Monday, April 25. The company proposal, coupled with existing agreements that have accepted many terms sought by AFA, presented a road map to reaching an industry-leading contract. Company representatives stated in presenting the proposal that the parties need to look at the collective terms in the aggregate and reiterated that United is committed to providing an industry-leading agreement like the agreements recently ratified by ALPA pilots, IAM-represented ground employees and PAFCA dispatchers.
At the NMB’s request, United and AFA financial experts spent considerable time working together to understand their respective economic analyses of both proposals, as well as the current state of industry competitors and the parties’ proposals relative to the industry. That has not happened to this point in negotiations, and we view it as a necessary and productive step.
In an effort to make progress, United and AFA exchanged package proposals on separate sections of the agreement in an effort to narrow remaining open issues and pave the way towards bringing these negotiations to conclusion. We also have a plan to provide for further discussion next week on the issues of key importance to the parties.
Negotiations will continue on May 2 in Chicago, as well as the week of May 16 in Reston Virginia.