Negotiations continue

During the two days of bargaining in Denver on July 29th and 30th talks focused on Article XI Vacancies and Article XX Safety and Health. Negotiations on Article XI Vacancies involved a great deal of discussion on temporary assignments and how to ensure the system is fair and equitable. When discussions moved to Article XX Safety and Health, the parties covered the role of Union EAP reps. The Teamster negotiating team emphasized the clear value of having trained Union EAP reps that can provide quality face-to-face assistance to the membership.

Union Pension Sub-Committee Meets
Led by Chief Negotiator Clacy Griswold and IBT attorney and pension expert Ed Gleason, the Union Pension Sub-Committee met in Denver, Colorado on July 30th, 2009.
Mr. Gleason briefed the committee on Pension issues, explaining that the stock market and stricter funding requirements created by the Pension Protection Act played a significant role in the financial strain and outright disappearance of "single employer" pension funds (such as United's old plan). Mr. Gleason went on to outline the advantages of "multi-employer" pension plans. For example, the Western Conference of Teamsters Pension, as a "multi-employer" plan, has over 5,000 employers making contributions to the plan creating the type of funding diversification that ensures stability.
The Teamsters feel strongly that that market volatility associated with a 401k means it is not an adequate replacement for a real pension. The Teamsters view a better role for a 401k as a supplement to a strong "multi-employer" pension plan such as the Western Conference Pension.
The committee was briefed on the strength of the Western Conference Pension Plan, Mr. Gleason summarizing it by stating: "The Teamsters Western Conference Plan is absolutely one of the best multi-employer pension funds in the nation."
Please see the attached document for the comprehensive negotiation update, or to view online, please visit: www.IBTUALNegotiations.com

Cool $91 Million

Reading United Airlines most recent quarterly report, I noticed under the “Capital Commitments” United has a Nonbinding commitment for 42 A319 and A320 aircraft, which equals to $2.3 billion. In their filings, they state that they believe it is “highly unlikely that it will take delivery of these aircraft”. In addition, that it will have to forfeit $91 million of the advanced delivery deposits.

Airbus is currently reporting a 2,600 A320 family backlog and as reported on June 23, 2009. Airbus took delivered of the first A320 aircraft assembled at its Final Assembly Line China (FALC) in Tianjin China. Gives a new meaning to “Made in China.”

With United Airlines backing out of the orders this is a win, win for Airbus. They will cut their backlog down by 42 aircraft and they get a cool $91 million.

Jock

Aircraft Acquisition

Last June in an employee meeting, the Senior VP of United Services Jim Keenan had discussed the request for proposals for new aircraft from Boeing and Airbus to replace the 767 and the 757. There was an interest to have mechanics share input and these might help United Airlines on evaluating the bids. United has a form on line to solicit your input. I would highly recommend that everyone take this survey. You can find it on Skynet just go to the United Services page and click on Aircraft Acquisition Employee Input Form. This form will only be available from July 24 – August 14.

Jock

Overhauling the Grievance Procedure

Negotiations again centered squarely on the subject of revamping the Grievance Procedure (Article XVIII). One key facet of the negotiations held on July 23rd and 24th involved Business Agents and Chief Stewards from each city presenting data supporting the Union's Grievance Procedure proposal. The Agent's reports demonstrated that the current grievance procedure is broken and that the 2nd and 3rd step backlogs are a major contributing factor to the workforce's low morale.

United Update on Getting a Pension Plan for the Mechanics

One of the Union's top priorities is to secure defined benefit pension benefits and retirement security for the UAL mechanics and related craft and class. The Union's representatives have been advised that although the Pension Benefit Guarantee Corporation (PBGC) will not and cannot restore the UAL defined benefit plans that were terminated during the UAL bankruptcy, the PBGC will not oppose any effort to negotiate UAL into a defined benefit multiemployer pension plan. Having secured this "green light," IBT Chief Negotiator Clacy Griswold and IBT counsel Ed Gleason met with representatives of the Western Conference of Teamsters Pension Trust to discuss the possibility of negotiating UAL into the Fund. The Fund's representatives confirmed the Fund's administrative procedures and benefit structure. The Fund's representatives advised that they would be available to attend "road shows" with the membership to discuss the Fund's structure in greater detail and to answer any questions. Union representatives have also met with the Union's actuaries who are providing expert assistance with respect to the Union's UAL pension project. Finally, Chief Negotiator Griswold has scheduled a meeting of the negotiating committee's pension subcommittee next week. The subcommittee will meet in Denver, Colorado, when contract negotiations resume.

UAL may move.

United Airlines' parent, UAL Corp., is in talks with the owners of Willis Tower about moving a 2,800-employee operations center from Elk Grove Township to the former Sears Tower, according to a report by Crain's Chicago Business, citing unidentified sources.
Crain's reported that UAL is considering leasing about 450,000 square feet in the 110-story skyscraper, and that the talks involved the Daley administration.

20% Farmout

There are four points that the arbitrator placed his decision on. They are as follows:

1. The meeting between the company and union in 1998 (at that time it was the IAMAW) which LaRocco said the union could not substantiate never happened as was stated by jerry Nelson.
2. The subsequent financial reports supplied by the company which showed the maintenance budget figures.
3. The 2003 restructuring agreement with IAMAW which included language to exclude the heavy maintenance costs from the 20% farm out Article 2 D. 4 where the language states, (that except for the change to heavy maintenance, the OSV formula would apply “as currently calculated” to conclude that the IAM was formalizing its agreement to the change in OSV formula. (see the attached summary from Bill Wilder)
4. AMFA took too long to file the grievance. (see the attached summary from Bill Wilder)

The documents can be found here, and the second one is here.

Jock

Southwest Airlines Inspects Planes After Emergency Landing

Southwest Airlines is inspecting nearly 200 of its aircraft overnight after a hole in the fuselage of a plane forced an emergency landing in West Virginia. Charleston, West Virginia, airport spokesman Brian Belcher says passengers on the 737 aircraft could see the outside through the 1-foot-by-1-foot (30-centimeter-by-30-centimeter) hole in the rear of the plane. The cabin lost pressure, but no one was injured. The plane, which originated in Nashville and was headed to Baltimore, landed safely in Charleston Monday evening. It’s not clear what caused the damage. Southwest Airlines Co. spokeswoman Marilee McInnis says the company was inspecting all of its 737-300s overnight as a precaution. Service Tuesday shouldn’t be affected. The 137-seater makes up about a third of the carrier’s fleet of 544 jets.

http://teamsterair.org/

Teamsters Airline Division Launches Web Site

The Teamsters Airline Division on Monday launched a new web Site, teamsterair.org, to more fully inform its members and to provide them with a way to communicate with each other using the Internet.

Continental Gets Air Alliance Clearance

The U.S. Department of Transportation on Friday granted final approval for Continental Airlines Inc. to participate in a new joint venture with members of the Star Alliance group of carriers. The move came two weeks after the Justice Department blasted the plan as being harmful to consumers and competition.
The DOT, which has sole authority to give antitrust immunity to international airline cooperation agreements, had given a provisional go-ahead to the plan in early April and had been expected to issue its final order on June 1. But behind-the scenes wrangling with new Obama administration appointees at the Justice Department delayed the process.
The Wall Street Journal.