The Tentative Agreement that is now before you comes after two years of negotiations, both pre and post merger announcement. During this process we made a couple of major strategic decisions that were beneficial to the process.
The first decision was not to invoke federal mediation. This decision enabled us to continue the negotiations at a pace that we had more control of. While the other Unions made an early decision to invoke mediation, in our view, mediation is a process that you invoke only when nothing is being accomplished through direct negotiations. This was not the environment we were in, and that led to our determination that mediation would not be beneficial for us. That decision paid off by enabling us to freely schedule the negotiation dates and continue to make progress. While we wish our colleagues at the other Unions the best in their mediation sessions, we do not envy the current pace of their mediated negotiations.
The second decision was to not go into amalgamated negotiations without first completing our “Section 6” negotiations for a “stand-alone” UAL contract. Last year, after the merger was announced and then again when the merger was approved by the government, the Company very strongly expressed its desire to enter into formal amalgamation negotiations to combine the UAL and CAL Mechanic contracts. The Company wanted to do this because it wants to set the upper bar or standard for a long-term, amalgamated contract at the current CAL mechanics’ agreement. We opposed the company’s effort in part because of the large number of changes that needed to be improved in the current UAL CBA and because we fully intend to obtain economic and work-rule improvements in amalgamation that are higher and greater than the current CAL mechanics’ contract. There are so many differences between current CAL and UAL contracts that it was far better to fix a good portion of the contractual provisions and language in these pre-amalgamation Section 6 negotiations, and then focus on the remaining, very important but uncompleted items when we are in amalgamated negotiations.
The TA immediately recovers many of the contractual rights and protections that were conceded and lost in the existing and prior contracts. The TA also has many improvements that will be beneficial to all of our UAL members. We have lived far too long under the existing wages that were a result of bankruptcy concessions, and we have seen too many of our co-workers laid off while our work has been outsourced due to the current weak scope language. But this TA is not the end of the road. It takes care of the more immediate need to raise our incomes and protect our work and our jobs as we go through this merger, while giving us an advantage going into the amalgamated negotiations, our second bite of the apple.
The decision that is now before you -- to either vote yes or no on this TA – comes during an extremely unusual situation that will not likely be repeated in our careers: both options will result in further negotiations. A yes vote means that we will immediately enter into the amalgamated negotiation process, and within 30 days, a joint committee will be established to work on alternative Health and Welfare options. Ultimately, a yes vote will allow the joint negotiating committee to focus on the core items – the compensation and benefits that we intend to obtain in amalgamation.
A no vote will also mean a return to negotiations, but the Company will almost certainly move those negotiations into NMB mediation, and those mediated negotiations will start at the existing UAL contract terms and will therefore be without any of the wage and work-rule recoveries and improvements that are contained in the TA. In that no-vote scenario, the Company will most likely slow the process down for what could be a very long time because the existing UAL contract is far cheaper for the Company than the CAL contract and the TA (in spite of the fact that the TA does not provide all of the compensation and benefit items that we want and deserve); and that savings could outweigh the Company’s benefits of completing the amalgamation process.
In our view, if the TA is ratified, the Company will not be able to slow the process down nearly as long as it otherwise could. That’s because the TA forces the Company to enter into amalgamation negations from a higher economic starting point. The Company therefore cannot stop or delay the amalgamation because the TA imposes additional costs without providing it with any of the benefits of a fully integrated operation. For the same reason, Wall Street will also push it to complete the amalgamation. The TA is, quite simply, a necessary, short-term transitional step toward achieving an industry leading, long-term contract. With its scope and other job-related improvements, the TA places us solidly at the top of the legacy passenger airline industry and allows us to finish the job of amalgamating the contract from a higher level of wages, better work rules and much stronger job protections.
It’s important to have a good understanding of the meaning and the benefits of the new language in this TA as you make your decision. We will be communicating through membership meetings, an online teleconference, and written publications in order to properly disseminate the information. Please take the time to learn all you can as we enter the voting process.
For all the above reasons, your negotiating committee strongly recommends a YES vote.
Sincerely,
Your Negotiating Committee
