Perspectives: Archive
November 18, 2009
Benefits Proposals
Over the last week, we met with the International Brotherhood of Teamsters (IBT), the International Association of Machinists and Aerospace Workers (IAM), the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA) to submit United’s benefits proposal to the unions. We presented each union with an overview of the current challenges and proposed solutions to the ever escalating cost of benefits to United and our employees. Our principal objective in these negotiations is to reach agreements that provide competitive wages, benefits and work rules for our employees.
Benefits are an important component of every employee’s compensation package. At United, like companies across the country, we have seen the costs associated with benefits increase well beyond the rate of inflation, as the graph below highlights.
The proposals we presented to each union emphasized our desire to:
- Increase the focus on helping employees achieve and maintain good health
- Ensure programs are effective, well managed and cost efficient
- Align our plan designs and cost sharing approach with the market
By taking these actions, we will create an efficient, health-oriented benefits program, and position United to offer a well rounded compensation package providing competitive value to all employees. Ultimately, the best outcome for both employees and the Company is to drive down health care costs by achieving and maintaining good health.
In commencing benefit discussions, we have emphasized the reality of negotiations - that a final agreement will take into consideration modifications made in several areas which together make up the total compensation package. Today we are at a cost disadvantage when compared to peer airlines and our benefits proposals also are intended to address this cost difference. At the same time, we are changing the Company’s focus to help our employees achieve and maintain good health.
We look forward to negotiating these issues with all of our unions. You can review United’s Benefits Platform below. I will provide further updates and information as negotiations progress.
Sincerely,
Doug McKeen
Senior Vice President – Labor Relations