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Continental Micronesia Merger Update
Continental Airlines has announced its intention to make application for a single Part 121 operating certificate, combining the operating certificates of Continental Micronesia and Continental Airlines. This action begins the process of combining the operating certificates of all three airlines, Continental Micronesia, Continental and United.
This announcement has no immediate impact to the Continental Micronesia operation and most importantly to the Flight Attendant collective bargaining agreement. As more information becomes available you will be advised.
[continue reading...]Recent Posts
The latest posts to Flight Attendant Merger Matters are below..
- Continental Micronesia Merger Update
- ExpressJet Airlines Merger Update
- DOJ Approves Continental-United Merger
- IAM Meets with Justice Department Over United-Continental Merger
- IAM Files for Continental Ground Instructor Election
- CO Negotiators Respond to Coordinated Bargaining Offer
- IAM Responds to Atlantic Southeast-ExpressJet Merger
Pensions
IAM, PBGC Discuss UAL/Continental Pensions
Machinists’ Union representatives met with acting director of the Pension Benefit Guaranty Corporation (PBGC) Vince Snowbarger and his staff this week to discuss the impact a merger between United Airlines and Continental Airlines could have on employee pension plans.
General Vice President Robert Roach, Jr., District 141 President Rich Delaney, District 142 President Tom Higginbotham and members of the IAM’s legal and strategic resources departments described the importance of preserving our member’s defined benefit pension plans and retirement security.
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Representation
Representation
If a merger is completed, one issue that will be addressed is which union, if any, will represent flight attendants at the combined airline. The National Mediation Board (NMB), the government agency responsible for conducting airline union representation elections, has procedures to resolve representation disputes in airline mergers. Ultimately, flight attendant union representation will be determined by a vote of flight attendants.
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Contracts
Contracts
The question about which union represents the combined flight attendant group at a post-merger United Airlines will be resolved separately from the issue of which collective bargaining agreement survives the merger.
A collective bargaining agreement is not owned by a union – it belongs to the union members. If a group of airline employees decide to change union representation, the new union will inherit the contract negotiated by the prior union and be bound by its terms until it can negotiate new terms to bring both pre-merger groups under the same collective bargaining agreement.
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Seniority
Seniority
Integrating seniority is never easy. In Continental’s history there have been several seniority integrations, some of which were unilaterally implemented by the Lorenzo-led company when there weren’t any contracts in effect. The IAM is committed to integration of seniority in a way that is fair and equitable for all flight attendants.
One common method of integration is “dovetailing” seniority. That would be to integrate by your current Continental date of hire into the flight attendant classification. Whatever Continental seniority date you have today, as well as United flight attendants seniority dates, would be merged into a single list by date of hire.
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General
ExpressJet Airlines Merger Update
The IAM’s ExpressJetnegotiating committee met at the Union’s William W. Winpisinger training center in Hollywood, Maryland from August 26 – 29, 2010, to finalize contract proposals which will be presented to ExpressJet management in Houston on September 20, 2010. The ExpressJet negotiating committee is well prepared to begin negotiations and achieve another industry-leading contract for the ExpressJet Flight
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DOJ Approves Continental-United Merger
The Department of Justice today cleared the United-Continental merger of any anti-trust issues, giving the merger regulatory approval.
“It is clear by the simultaneous announcements of leasing slots in Newark to Southwest Airlines and the DOJ clearing this transaction that United/Continental was attempting to satisfy the IAM’s concerns expressed at our meeting with the DOJ regarding the loss of jobs as a result of this merger,” said IAM General Vice President Robert Roach, Jr. “However this does not satisfy the IAM’s concerns about the potential loss of jobs.”
“The IAM has raised our concerns before Congress, various government agencies and at the bargaining table,” said Roach.
Pensions
IAM, PBGC Discuss UAL/Continental Pensions Machinists’ Union representatives met with acting director of the Pension Benefit Guaranty Corporation (PBGC) Vince Snowbarger and his staff this week to discuss the impact a merger between United Airlines and Continental Airlines could have on employee pension plans.
General Vice President Robert Roach, Jr., District 141 President Rich Delaney, District 142 President Tom Higginbotham and members of the IAM’s legal and strategic resources departments described the importance of preserving our member’s defined benefit pension plans and retirement security.
Pensions The IAM believes that all employees deserve traditional defined benefit pension plans. But if the Continental-United merger is completed, the IAM has serious concerns about the ability of the Continental Airlines Retirement Plan (CARP) to survive with flight attendants continuing to accrue benefits.
While in bankruptcy, United cut a deal with the Pension Benefit Guaranty Corporation (PBGC), the government agency that insures defined benefit pension plans, to terminate all of United’s pension plans. As part of the arrangement, United was prohibited from establishing any new pension plans for a ten-year period, ending in 2015.
Seniority
Seniority Integrating seniority is never easy. In Continental’s history there have been several seniority integrations, some of which were unilaterally implemented by the Lorenzo-led company when there weren’t any contracts in effect. The IAM is committed to integration of seniority in a way that is fair and equitable for all flight attendants.
One common method of integration is “dovetailing” seniority. That would be to integrate by your current Continental date of hire into the flight attendant classification. Whatever Continental seniority date you have today, as well as United flight attendants seniority dates, would be merged into a single list by date of hire.