United Airlines Negotiations : Unions : IAM

United and the International Association of Machinists began the negotiations process on Tuesday, April 7 in a respectful and professional meeting.

Following introductions of the negotiating teams and opening remarks, United and the IAM each presented their opening proposals.

The full text of United’s opener is posted below. The main issues United discussed were the need for agreements that delivered in three key areas:

• Competitive wages, benefits, and work rules
• Meaningful incentive compensation tied to measurable and realistic performance metrics
• Flexibility to respond to changes in the marketplace, evolving customer expectations and emerging commercial opportunities

The United and IAM negotiating teams met in Chicago on 15 separate dates since the last update, including 3 dates each in late May (18, 20 and 25) and late June (22, 23 and 24), 7 dates in July (13, 14 15, 21, 22 and 27, 28) and August 3 and 5.

The May meetings focused primarily on a broad overview of the merger with Continental and issues related to seniority and the ratios between full- and part-time positions. The parties also discussed the many differences between the various work groups at the two airlines (supervisory, union-represented or non-union) and which craft or class specific United job classifications fell within in the Continental workforce. While issues regarding the merger were raised during the June sessions as well, the discussions returned to other issues within the current UAL-IAM Ramp and PCE agreements themselves. Thus, discussions continued around minimizing mandatory overtime, relief staffing scenarios that would enable greater vacation scheduling flexibility (both increased full week and DAT vacations, and combined full and part-time vacation bidding), and the selection process for more highly skilled positions such as station training coordinators, Red Carpet Club and Global Services.

When negotiations reconvened in July, the topic of discussion shifted to issues with greater economic focus (wages, vacation and holiday allocation and work rules). The parties spent much time discussing current full-time and part-time staffing ratios at Ramp stations. Within this context the Company introduced proposals for work rule changes that would provide more scheduling flexibility and staffing efficiency. The two sides reviewed these work rule changes and possible opportunities to create greater full-time work opportunities and minimize the use of part-time employees. Much discussion also took place around the Union's proposed changes to wages, vacation accrual and holiday allocation. The Company offered a full review of the costs associated with the union's proposal and the need to look for means to address other costs to offset the increased expense associated with the union's position. All negotiating sessions throughout remain positive in that they provided an opportunity for both parties to explore alternatives rather than considering static positions that could be only accepted or rejected.

The parties are scheduled to resume negotiations in Chicago on August 10.