Perspectives
Observations on the airline industry, negotiations and other key issues of interest will be posted on an ongoing basis.
December 18, 2009
Amendable Dates
Negotiations continue to progress at varying paces with each of our unions. As noted here previously, the National Mediation Board is providing mediation assistance in negotiations with ALPA, AFA and the IAM, and we remain in direct negotiations with the IBT, PAFCA and IFPTE. The chart below provides a statistical summary of the status of negotiations with each union. The chart certainly does not tell the entire story about our progress, as discussions have been more productive with the IBT, IAM, ALPA, PAFCA and IFPTE, but difficult issues remain with all groups.
| SUMMARY OF BARGAINING STATISTICS TO DATE | ||||||
|---|---|---|---|---|---|---|
| AFA | ALPA | IAM | IBT | IFPTE | PAFCA | |
| Kickoff Dates | April 6th | April 9th | April 7th | April 28th | April 15th | April 10th |
| Dates Bargaining Began | May 6th | April 14th | April 8th | May 26th | June 9th | April 23rd |
| Table Days | 49 | 35 | 43 | 27 | 8 | 12 |
| Tentative Agreements | 6 | 4 | 2 | 4 | 0 | 2 |
| % of Total Sections in Contract | 17% | 16% | 9% | 13% | 0% | 10% |
| Sections 25%-75% Complete | 3 | 11 | 3 | 3 | 1 | 4 |
| % of Total Sections in Contract | 9% | 44% | 14% | 10% | 7% | 19% |
| Sections <25% Complete or Not Passed | 26 | 10 | 17 | 23 | 13 | 15 |
| % of Total Sections in Contract | 74% | 40% | 77% | 77% | 93% | 71% |
| Status of All Sections in Contract (inc TA'd) | ||||||
| No Proposals Passed | 1 | 2 | 13 | 11 | 11 | 5 |
| <25% Complete | 25 | 8 | 4 | 12 | 2 | 10 |
| 25% Complete | 0 | 4 | 0 | 3 | 0 | 0 |
| 50% Complete | 2 | 4 | 0 | 0 | 1 | 0 |
| 75% Complete | 1 | 3 | 3 | 0 | 0 | 4 |
| 100% Complete (TA'd) - per Book | 5 | 1 | 0 | 1 | 0 | 0 |
| 100% Complete (TA'd) - Negotiated | 1 | 3 | 2 | 3 | 0 | 2 |
| Total Sections | 35 | 25 | 22 | 30 | 14 | 21 |
At the beginning of January, all of our union contracts will reach their amendable dates. An amendable date is simply the date agreements are subject to amendment; however, the Railway Labor Act (The U.S. federal law that governs collective bargaining in the airline and railroad industries) provides that the existing contract terms remain in effect as the two sides continue to negotiate.
While we started the negotiation process early, it is unlikely that we will reach final agreement with any union by the amendable date, which has historically been the norm for our industry.
United has committed from the start of negotiations to handle them with the utmost integrity throughout the process. We continue to work on coming to agreements as soon as possible, but both parties will have to be realistic and engage in a meaningful way in order to reach a final agreement.
Notwithstanding recent AFA communications concerning the upcoming amendable dates, both sides have a legal obligation to maintain the status quo of rates of pay and working conditions until a final agreement has been reached. Other union leaders have acknowledged publicly that negotiations were unlikely to be concluded soon. For instance, when asked about his expectations for ALPA reaching the conclusion of the negotiation process, Captain Wallach, the current MEC Chairman for ALPA stated that, “…that’s going to be 18 to 24 months downstream…it’s not going to happen anytime soon, and it’s certainly not going to happen anytime prior to the amendable date…”
It takes more than merely coming to the bargaining table to get an agreement. It takes creative problem solving, give and take, a realistic view of what is achievable to enable us to have a competitive and sustainable enterprise for the long term. United will continue to bargain in good faith with the expectation of coming to mutually beneficial agreements for the company and our employees in a timely manner.
Sincerely,
Doug McKeen
Senior Vice President – Labor Relations
