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April 11, 2008
IAM Negotiates Guaranteed UAL Wage Increases
To All IAM Members Employed by United Airlines
Printable Version
Dear Sisters and Brothers:
District 141 has reached an agreement with United Airlines to increase
wages for members working under all IAM-UAL collective bargaining
agreements. The guaranteed wage increases will replace the unreliable
“Annual Incentive Formula”. Since its 2004 inception, UAL has only
achieved 100% of its target incentive goals one time, resulting in
typical annual incentive checks ranging from $10-$20.
Replacing the Annual Incentive Formula will be an increase to employee
hourly wages. All IAM-UAL members are due a scheduled wage increase of
1.5% on May 1, 2008. That scheduled increase will now be 2.5%, an
additional 1% over the terms of the bankruptcy agreements. The scheduled
May 1, 2009 increase will be 2.5% as scheduled reflecting the new rate
increase adjustment.
The first four months of 2008 will be retained in the current incentive
program and eligible for payment next year in accordance with the
current incentive plan, but the plan will be eliminated effective May 1,
2008. The elimination of the Annual Incentive Formula does not change
the current Profit Sharing Plan, which remains intact.
By converting the incentive plan into an hourly rate increase going
forward IAM members will see a greater value than in the incentive plan.
This is a guaranteed rate increase that is not subject to performance
goals.
Although District 141 and United Airlines will not begin formal
negotiations until early next year, the IAM is continually engaging UAL
management to improve the lives of our members. The additional wage
increases demonstrates that commitment.
Fraternally,
S.R. (Randy) Canale
President and Directing General Chairman
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