Air Transport Employees
Local Lodge 1781              

1511 Rollins Road, Burlingame CA 94010

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February 4, 2008

UAL Merger Info Update

To: All IAM/UAL Members

Dear Sisters and Brothers :

Printable Version

United Airlines management requested to meet with us last week to discuss the "merger/consolidation" articles appearing in the news media, and CEO Tilton's publicly stated views around this issue of such a need to consolidate with someone, and as shared with employees on the 1/18/08 "Eye On United". The company was represented at this meeting by Pete McDonald (Senior VP for World Wide Operations) Paul Lovejoy (Senior VP General Counsel) and Tom Sullivan (Director Labor Relations - Ground) and joining me for the IAM were AGC Al Faung Jr, AGC Miriam Seewald, AGC Karen Asuncion and AGC Denny Demes.

The purpose of the meeting was to begin a dialogue with us to develop a joint process and structure that can be in place to clearly communicate with each other in the event such a merger or consolidation takes place.

While the company confirmed at this meeting their stated interests in this area ... they did not identify any particular partner at this time. We advised the company we would develop and propose a transparent process and structure that provides we be made aware of any significant progress towards a merger within the limits of the law. We further advised that when we had such a process/structure developed we would re-engage the company for further discussions and the company concurred to a follow-up meeting. We also requested should a merger take place that the company recognizes the IAM for continued representation rights, which the company declined to address at this time.

Pilot's Recent Agreement of 1/21/2008

We took the opportunity while at the above stated meeting to engage in a brief discussion regarding the recent Agreement between the company and pilots. We advised the company that we have provided their Agreement with the pilots to our financial adviser for a review. We further advised that should it indicate that there has been an increased cost to the company (not cost neutral) in entering this Agreement, it would be our intention (as bargained by the DL 141 Negotiating Committee) under the terms of our Agreement, to begin bargaining with the company for the same cost value for our membership as provided to the pilots.

We will continue to keep the membership informed on these issues as we move forward and information as it is developed with the company.

Sincerely and Fraternally,

S.R. (Randy) Canale
President and Directing General Chairperson