Greetings!
The announced Continental-United merger prompts many questions. Below are the answers to some initial questions IAM members may have. The Machinists Union is conferring with management of both United and Continental to ascertain all the details, but at this point there are certainly more questions than answers. As factual answers become known, they will be added to this document.
Continental members with specific questions should submit them through the District 142 website, www.go142.org, or contact an IAM representative.
1. Q: What does today's announcement mean for employees?
A: The announcement will have no direct, immediate effect on employees of either carrier. There is no way to tell at this time if a merger will even be
concluded.
2. Q: What has to happen for the merger to be concluded?
A: The merger must receive approval from the shareholders of each company, as well as approval from the Department of Justice.
3. Q: What happens to our contract?
A: It will remain in full force and effect until after representation issues are resolved.
4. Q: How will this affect our contract negotiations?
A: While the prospect of a merger will be on the minds of your negotiators when they return to the bargaining table, there is no way to tell if a merger will actually be approved. Your IAM negotiators' goal remains to continue negotiating a contract for Continental flight attendants as soon as possible. However, the attorneys, economists and other professionals on the IAM's Transportation Merger Team who have been evaluating a United-Continental merger since 2006 will assist your negotiators on issues relating to or potentially impacted by a merger.
5. Q: Do we have merger protection in our contract?
A: Yes, Section 1. E., of our contract explains, in comprehensive detail, protections that are provided in the case of a merger. Rates of pay, work rules and working conditions are just of few of the important protections addressed in
International Association of Machinists & Aerospace Workers www.go142.org
May 3, 2010 Page 1 of 2 May 3, 2010 Page 2 of 2 Section 1. E., of our contract. This section also provides for fair and equitable
seniority integration.
6. If this merger occurs, will we still be represented by the IAM?
A:Railway Labor Act regulations and National Mediation Board (NMB) procedures will determine the certified collective bargaining representative for each classification in the combined Continental/United workforce. The NMB may order an election to determine the certified representative for flight attendants. Nothing would be resolved until the NMB determines that both companies are operating as a single entity for representation purposes, and there is no timetable for that to happen.
7. Q: What will happen to our pensions?
A: Guaranteeing flight attendants' retirement security is a major concern for the Machinists Union, and the IAM will fight to protect the pensions of our members at both carriers in any merger scenario.
The Continental Airlines Retirement Plan (CARP) is currently underfunded by $1.4 billion. United's flight attendants' pension plan was terminated in bankruptcy and they have not earned defined pension benefits since 2005. Additionally, as part of its bankruptcy settlement, United is prohibited from having a company-sponsored pension plan for 10 years from when it terminated its pension plans in 2005. United's IAM members earn defined pension benefits in the IAM National Pension Plan, which is 96% funded. The current IAM-Continental collective bargaining agreement calls for the airline to immediately begin contributing to the IAM National Pension Plan on behalf of flights attendants if CARP becomes frozen or terminated.
8. Q: How will the IAM integrate seniority?
A: The Machinists Union is committed to protecting the seniority of all impacted employees. The IAM's longstanding official policy is to provide for seniority integration by the date of hire into the classification of members from their respective merging companies. Until greater detail of the merger is provided, we are preparing for many possible scenarios and the union will not speculate on rumors or hype.
Note: Regular additions will be made to this document. Check www.go142.org for the latest information. |
Continental-United Propose Merger ________________________________________________________________________
Continental and United Airlines as you know announced plans to merge. A deal is far from being completed and faces many obstacles, not the least of which is earning support from employees.
Protecting the superior wages, pensions and job security the IAM negotiated for Continental flight attendants is a Machinists Union priority. How a merger would affect Continental Micronesia and ExpressJet Flight Attendants is also a serious concern.
As this merger proposal unfolds, the IAM remains committed to continuing contract negotiations with Continental and reaching a new agreement. The attorneys, economists and other professionals on the IAM's Transportation Merger Team who have been evaluating a United-Continental merger since 2006 will assist your negotiators on issues relating to or potentially impacted by a merger.
IAM-represented Continental flight attendants have the highest wages in the industry and also have a guaranteed defined benefit pension plan. The only United Airlines employees with a defined benefit pension plan are IAM members.
You can compare flight attendants wages industry-wide at the IAM's flight attendant website, www.go142.org. The site also provides a merger Q&A that will be continually updated as the merger proposal moves forward. District 142 and Local IAM flight attendant representatives will also be available in the crew rooms to answer your questions.
The outcome of the merger is uncertain, and will take many months to resolve. One thing you can count on is that only the IAM cares about the interests of Continental flight attendants and the preservation of the wages and pensions you have earned. |
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Video Update
 Check out the latest video by Local Lodge President Joey Guider in regards to the announced merger. Join us on Tuesday May 11th, 2010 at the Renaissance Hotel at the 3pm for the monthly Business Meeting. Light snacks will be served. |
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Local Lodge Executive Board
One Gateway Center
Newark, New Jersey 07102
973-622-8183
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Business Meeting May 11th, 2010 Agenda
1. Vote to approve to up to $3500
for office supplies for the grievance committees of CAL and XJT. This
amount is for the combination of both committees and would be used until
the amount is depleted.
2. Vote to approve up to $1200 for
replacement phones for the committee
members who are entitled to phones
according to our bylaws,
3. Vote to approve up to $2200 for
the costs of the DL 142 Election. Cost includes payment for site,
for members who work the election for lost time at 75% of their rate
of pay for up to ten hours per day and meals and beverages for all.
4. Vote to approve to send up to
$150 to sister locals who have requested our assistance and who are
on strike according to our bylaws.
5. Vote to approve to spend up to
$1200 for refreshments to be served at local's monthly meeting.
This total amount is to be divided for the months of June, July and
August 2010.
6. Vote to approve to spend up to
$2850 per month until August 2012, for office rental which includes
the telephone line, internet, telecom services, kitchen fees and meeting
rooms. This price is inclusive of all the amenities and represents
a total monthly increase of only $300 per month.
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AIDS WALK NYC
Still time to Join the IAM Flight Attendant Group for the AIDS Walk NYC in Central Park on Sunday May 16th, 2010. Sign up by visiting the Local Lodge website and click on the AIDS logo on the main page.
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