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United Continental Merger Q&A
Updated May 7, 2010 — Just Ask. United Members with specific questions
can always use the “Just Ask” button to submit questions.
Below are Rich Delaney’s replies to Member questions already submitted.
Q: I understand that Continentals pay scale for Public contact
employees, specifically Reservations Sales and Service Representatives,
is around $3.00 less per hour than what United offers. How will this
play out if the merger is pushed through? And please make sure our hard
earned benefits and job security are not diminished by Glenn Tilton and
his grandiose legacy ambitions.
A: Despite Continental's wage and benefit levels we are continuing to
negotiate improvements in our current United Agreements, including PCE.
At a time in the future when both airlines are operationally combined
and
issues of representation are settled, a new replacement contract
covering all Members will be negotiated.The full combination of the two
carriers is not expected to happen before the first half of 2012.
Q: For those of us that are currently on furlough waiting to be
recalled, how will this merger affect us? Will we still be able to be
recalled?
A: You have recall rights to the position you were furloughed from until
such time you are offered return to work. The provisions of our contract
covering the seniority protection of furloughed Members is not affected
by proposed mergers.
Q: What would happen to the furloughed employees at United? In our
contract it states we have recall rights for life, and in the merger,
will we displace Continental employees according to what our seniority
can hold.
A: Your recall rights are maintained until you are offered a return to
work to the position from which you were furloughed. The integration of
seniority between United and Continental employees is a subject of
future negotiations, once the two airlines operationally combine. How
seniority is used in cases of furlough is also subject to negotiation.
Those talks have not begun.
Q: The pass travel policy for the two carriers are worlds apart, as it
relates to active and retiree boarding priority. How will this be
treated, and will the Union have any input as it is not contractual?
A: Our contracts state that the company Travel Policy will not be
substantially changed or discontinued without first discussing it with
the Union. The IAM, along with representatives from all other employee
groups,
participates in the Employee Travel Committee that routinely meets to
discuss changes and improvement in the pass policy. That forum will be
used to discuss employee travel in the future.
Q: What Unions represent Continental Ramp and Continental PCE? When does
seniority integration begin? And finally, how will current contract
negotiations affect active and furloughed employees?
A: At present, Continental PCE employees are not represented by any
organization. Ramp Service employees at Continental recently voted to be
represented by the Teamsters (IBT). Our current negotiations with United
over wages and working conditions for United employees represented by
the IAM will continue. There have been no discussions at this point with
either Company regarding seniority integration; that is an issue that
will be addressed when other issues, such as governmental approval of
the merger, representational elections, and operational integration has
occurred.
Updated May 3, 2010 — Below are the answers to some initial questions
District 141 Members may have. The Union is conferring with management
of both United and Continental to ascertain all the details, but at this
point there were more questions than answers.
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.
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.
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 contracts for our United members 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.
Q: Do we have merger protection in our contract?
A: Yes. Each IAM-UAL contract contains language that preserves our
collective bargaining agreements and requires fair and equitable
integration of seniority.
Q: If this merger occurs, will we still be represented by the IAM?
Railway Labor Act regulations and National Mediation Board (NMB)
procedures will determine the certified collective bargaining
representative for each classification in a combined United/Continental
workforce. The NMB may order an election for some classifications to
determine the certified representative. Nothing would be resolved until
the NMB concludes that both companies are operating as a single entity
for representation purposes, and there is no timetable for that to
happen.
Q: What happens to our contracts?
A: Contracts will remain in full force and effect until after
representation issues are resolved.
Q: What will happen to our pensions?
A: Guaranteeing our members’ 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.
United’s contributions into the IAM National Pension Plan and the
benefits our members are earning will continue as long as the IAM
continue as your collective bargaining representative and our collective
bargaining agreements remain intact.
Continental’s company-sponsored pension plans are $1.4 billion
underfunded. In contrast, the IAM National Pension Plan is currently
funded at 96%.
The IAM fought hard in bankruptcy to provide our members with a pension
plan after the bankruptcy court allowed United to walk away from its
obligations. We won’t allow your pensions to become a casualty of a
merger.
Q: How will the IAM integrate seniority?
A: The IAM’s longstanding official policy is to integrate seniority by
the date of hire into the classification, regardless of which airline or
union an employee comes from.
© 2009 dl141. All Rights Reserved.
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