Frequently Asked Questions About Merger

1.Will the pending merger result in a change in wages and benefits?
The merger will not have any immediate effect on pay and benefits for United employees. All current collective bargaining agreements will remain in place until changed pursuant to Section 6 negotiations or the combined company negotiates a new, joint collective bargaining agreement with each union.
2.Will there be any involuntary furloughs in frontline workgroups as a result of the merger?
The companies expect the impact of the merger on frontline employees will be minimal, with the reductions coming principally from retirements, attrition and voluntary programs.
3.Will the proposed merger result in recalls of furloughed employees?
The merger itself will not result in recalls. Rather, recalls will depend on the business needs and financial strength of the combined company. In the long term, we expect this merger to provide increased job security and long-term career benefits for all employees.
4.Will union representation change as a result of the merger?
For pilots and mechanics and related employees there will be no change because these employees are represented by ALPA and the IBT, respectively, at both airlines. For other work groups, where there is not common union representation, there could be a change depending on the desires of employees at the combined company.
5.How will new union representation be decided?
After the merger has closed and the carriers have begun to integrate operations, any union representing a particular work group may file what is called a “single carrier” petition with the National Mediation Board (NMB). The NMB will conduct an investigation and if it concludes that United and Continental should at that time be deemed a single carrier for representation purposes it will conduct an election among employees of both carriers. Other unions may intervene in the election if they provide an adequate “showing of interest” based on authorization cards. The election process is identical to the process you may have experienced in prior representation elections at United, and the NMB will certify the union that receives a majority of votes as the representative of the combined group.
6.When will the NMB “single carrier” determination occur?
The timing is primarily determined by the various unions or employee groups. Each group must file individually for “single carrier” determination with the NMB. As an example, in the Delta-Northwest merger ALPA filed a single carrier petition within a week after the merger agreement became final, and the NMB issued a single carrier finding about 60 days later. In contrast, AFA at Delta still has not filed a single carrier petition in connection with that merger.
7.What happens when employees at one carrier are non-union?
The process is the same as where the groups at both carriers are represented. If a majority of employees vote in favor of the union, it would be certified to represent the combined groups. If a majority of employees vote “no union” the employee group would become unrepresented.
8.How does the pending merger impact Section 6 negotiations?
The pending merger does not have any direct effect on the ongoing Section 6 negotiations, although the nature of the negotiations may change to consider the implications of the anticipated merger. United will continue in Section 6 negotiations with all of its unions unless the unions decide to focus on a joint collective bargaining agreement instead in which case United and Continental would seek to negotiate a joint collective bargaining agreement, effective upon closing of the merger.
9.What role will United and Continental take in seniority integration?
Although the carriers have a right to participate in seniority integration, United and Continental believe that these issues should be resolved by the employees themselves and will accept any list produced through negotiations between the unions provided that it is effective only prospectively and does not seek to impose additional costs on the carriers.
10.What basis will be used for integration of seniority lists?
The seniority integration process is normally done on a work group-by-work group basis but there is no single test for determining what is fair and equitable. In some cases, seniority lists have been integrated on a system-wide basis while in other cases they have been integrated on a classification or station basis. In some cases, the integration has been based solely on date of hire or adjusted date of hire (to account for furlough periods) while in other cases the lists have been integrated on a ratio basis. We believe that the criteria should be determined by the employees and unions involved.
11.How are non-union employees treated during integration of seniority lists?
Where employees at one carrier are union-represented and employees at the other carrier are not, the typical practice has been to appoint a committee of employees to represent the non-union group.
12.When will seniority integration begin and how long will it take?
We are unable to provide a definitive timeline as to when the seniority integration process will begin or how long it will last. In some cases, the employee groups may be able to work out seniority integration quickly and informally within the next few months. In other cases, however, it may take longer and if arbitration is required the process can take up to a year or more.