Friday, August 2, 2013

Negotiations Update August 2, 2013



The steering committee reconvened in Chicago on Wednesday July 31st and Thursday August 1st in Chicago to discuss options surrounding the negotiations with United Airlines. 
On Wednesday the committee received several presentations on the status of bargaining when the parties last met in May.  
Clacy Griswold, Airline Division Rep and Chief Negotiator, opened the session and explained to the group all that had transpired since the committee met last August.  
Local 210 Business Agent Ralph Salzano went through article by article all of the non-economic items that were agreed to during the facilitated process. This was followed by a presentation by Peter Hardcastle, of Cheiron, on the VDB (Variable Defined Benefit) pension discussions. He was followed by John Colberg and Jim Holland; both from Cheiron, who gave a presentation on the health and welfare discussions. Dan Akins, economist from Akins and Associates then gave a presentation of the overall economic issues that the negotiating committee both has and will be dealing with. 
At the end of each presentation there were question and answer periods for the committee so that they could clearly understand what was being discussed. One of the items that generated much discussion during the health and welfare discussions was the VEBA program. This program is a tax free account used to offset different medical costs. This account can be carried with the employee through retirement and then willed to surviving dependents. More information about this program will be available in the coming months. 
Close to the end of the session on Wednesday Clacy received word that the company would like to meet with the IBT leadership that evening to discuss negotiations. On Wednesday evening Mike Bonds, Doug McKeen, Jeff Wall and Marcel Delhommeau from the company met with David Bourne, Clacy Griswold, Ed Gleason, Paul Alves and Bob Fisher from the IBT to learn what direction the company was seeking in regards to negotiations. 
Thursday morning the steering committee was given a report on the meeting of the prior evening. The committee was informed that the company desired to get back to the table and that they appeared motivated to finishing what was started in January. Based on this report; the steering committee after much through discussion, determined that the best course of action would be to return to the table as soon as possible to finish the deal. There were concerns however that the company may not be serious and to that end there was a discussion on pulling the resource utilization MOU. After the committee learned that it was the opinion of the Division, through direction of counsel, that the letter could be terminated at any time, the committee tabled a motion to withdraw from the letter and will review progress in October to determine which course of action to take at that time. 
Ed Gleason from IBT Legal gave a presentation on scope. It was determined that a joint scope committee meeting should be held in the very near future to discuss several issues that were brought forward in the question and answer period following Ed’s presentation.  
The day finished with a general question and answer period and the session ended around 2pm. 
After the session, the company was notified that the committee desired to return to the table. The parties will discuss scheduling in the next couple of weeks. It is anticipated that we will return to the table in early September. When dates are agreed upon it will be reported through the Dispatch.

United 757 retirements will outpace replacement 737 deliveries

United Airlines is taking an aggressive approach to removing ageing Boeing 757-200s from its fleet, with its domestic fleet of the type targeted to be all but gone by the end of 2015.
The Chicago-based carrier plans to remove 73 of the type and replace them with Boeing 737-900ERs over the next two and a half years, says John Rainey, chief financial officer of United, during an earnings call on 25 July.
However, United only has 48 737-900ER deliveries scheduled over the same period - 25 less than its planned retirements of 757s - Flightglobal's Ascend Online database shows.
It is unclear how the airline plans to fill this gap. It also has deliveries of Boeing 787 and Embraer 175 aircraft scheduled during the same period but neither could be considered a replacement for domestic 757s.
Leasing additional aircraft could be an option. However, this would be a break from United's typical fleet renewal strategy that involves ordering new aircraft and financing them with secured debt.
In addition, Rainey reiterates management's plan to keep the carrier's "overall fleet count roughly flat over our planning horizon over the next five years", during the call.
United declines to comment.
The airline has 129 757-200s in its fleet and firm orders for 88 737-900ERs, according to Ascend. It has 88 757s powered by the Pratt & Whitney PW2000 turbofan engine, and 29 use Rolls-Royce RB211s.
Most of the domestic 757-200s were made before 1995, with those made after largely concentrated in United's international fleet. Ascend shows that 90 of the aircraft in its fleet were delivered before 1995.
United will sell up to 30 of the outgoing domestic 757s to FedEx, under a deal that was announced in March.
International 757s will remain in United's fleet for the time being. Ron Baur, vice-president of fleet at United, told Flightglobal in May that it had "no plan to replace the international [757s] other than to upgauge".


  Edward Russell Washington DC