13% for UAL mechanics, 17.5 for us!

Hopeful

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Dec 21, 2002
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I'll take my chances in bankruptcy court.




Machinists at United Airlines Reach 5 Tentative Agreements

Washington D.C., April 8, 2003 – With the clock ticking closer to deadlines that could spell the end of venerable 50-year old labor contracts, the International Association of Machinists and Aerospace Workers (IAM) reached five tentative agreements today with United Airlines to provide the bankrupt carrier with $2.6 billion in savings over a 6-year period.

“In the history of this industry, there is no precedent for the climate in which these agreements were negotiated,†said Randy Canale, District 141 President and lead negotiator, representing Ramp & Stores, Public Contact Employees, Security Guards and Food Service employees. “Nothing but the prospect of a liquidated United Airlines and the permanent loss of more than 70,000 jobs can justify such sacrifices by employees.â€

Details of today’s recovery accords include a 13 percent reduction in hourly wage rates, a 20 percent employee co-payment toward the cost of the traditional health insurance plan and work rule changes to allow greater use of part-time employees. Total cost savings from pay, benefit and work rule changes for nearly 23,000 employees are expected to reach $445 million annually.

IAM negotiators achieved the recovery targets while preserving existing pensions, vacations and recall rights for furloughed employees. Negotiators also established a profit sharing plan and enhanced benefits for any employee whose job classification is eliminated.

Full details will be presented to IAM members at informational meetings prior to ratification voting, a process expected to take three weeks. If approved, the agreements will deflect a pending bankruptcy court motion to abrogate any unmodified labor contract at United Airlines.

“We were determined to prevent the worst effects of bankruptcy from being unilaterally imposed on our members,†said Canale. “A consensual recovery plan is the best way to rebuild United while preventing a court ordered ‘cure’ from bringing far more painful terms for IAM members and their families.â€

A similar but separate agreement was also reached today on behalf of nearly 500 IAM members at Mileage Plus, Inc., a wholly owned subsidiary of United Airlines. Voting on all agreements will be completed by April 29, following local informational meetings.

Separate talks between United and IAM District 141-M, representing Mechanic & Related and Fleet Technical Instructors at the airline are continuing.

Additional information regarding the tentative agreement will be posted on the District 141 website at www.iam141.org.
 

KCFlyer

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On 4/9/2003 7:58:29 AM RV4 wrote:


FINALLY,

Proof that BK is NOT worse than we are being asked to volunteer!

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Funny, I didn't see anywhere in the article where the bankruptcy judge ordered the cuts...rather, I read this:

"We were determined to prevent the worst effects of bankruptcy from being unilaterally imposed on our members,â€￾ said Canale. “A consensual recovery plan is the best way to rebuild United while preventing a court ordered ‘cure’ from bringing far more painful terms for IAM members and their families."

What the article doesn't address are the increased costs UAL will be facing because of the bankruptcy filing - no ability to hedge fuel costs, worse rates for borrowing money, and a few other things. As sweet as you think the bankruptcy court will be, this agreement was made by the union...not the judge. RIght now, you are dealing with a gun pointed at your head. The UAL mechanics were dealing with a cocked gun pointing at their heads. I do not belive the judge would have been as nice.
 

FA Mikey

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You are both clueless! This is an agreement for Ramp & Stores, Public Contact Employees, Security Guards and Food Service employees only.

District 141M of the International Association of Machinists, which represents United''s 13,000 mechanics, has yet to reach agreement on anything.

What happens in terms of cuts is really irrelevant. AA will get a deeper cut in BK than what they are asking. The judge will not be concerned with UAL. Only the AA balance sheet and bottom line.
 

FA Mikey

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On 4/9/2003 9:23:42 AM Hopeful wrote:

You''re right mikey. But 13% for them and 16% for our people. That''s make you fell better?

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No, But you are looking at, and basing this all on a headline. When you see the depth of what they are giving up, you will be able to judge it better. UAL ramper''s are taking a 445 million dollar hit. Ours a 365 million. One good thing I can say that our guys have the medical and dental frozen. No increase. UAL has a 20% CO-pay. God help the worker who gets hurt, or has a family member or members who need serious medical attention.
 
OP
Hopeful

Hopeful

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AAviator:
You don''t make sense. A 3% difference for an airline who is far far worse off than AMR. UAL should have been asking for 25% paycuts considering the shape they are in.
 
OP
Hopeful

Hopeful

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Well, Mikey, once AA succeeds in raping its workers. The next step will have the employee paying 80% medical costs to the company''s 20%. But I haven''t forgotten that you F/A''s told Crandall to ef off and went on strike. You didn''t care about the consequences then. But now you are so fearful of losing your jobs. It''s pathetic.
 
OP
Hopeful

Hopeful

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You''re right mikey. But 13% for them and 16% for our people. That''s make you fell better?
 

FA Mikey

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On 4/9/2003 10:12:11 AM Hopeful wrote:

Well, Mikey, once AA succeeds in raping its workers. The next step will have the employee paying 80% medical costs to the company''s 20%. But I haven''t forgotten that you F/A''s told Crandall to ef off and went on strike. You didn''t care about the consequences then. But now you are so fearful of losing your jobs. It''s pathetic.

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No hopeful unlike yourself, I took the risk, I made the tough choice I stood up for my job and career. The difference now is that we are not in a boom economy. The country wasn''t at war. Terrorist had not stuck right in our backyards. The company was looking at profits, not staggering losses. Hopeful, Know when and where to pick your fights, and you will always, succeed. Base decisions on emotion, especially anger and you will set your self up for a fall. You cannot win in BK.
 

FA Mikey

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On 4/9/2003 10:29:24 AM Hopeful wrote:

Mikey: You do realize that what you give AA now you will NEVER win back in future negotiations. They have finally taken advantage of the events we now find ourselves dealing with. In six years, do you think you will get back your vacation and sick time? You may get a pawltry raise only after conceding more sick time and vacation time and m,edical costs. But hey, Mikey, why don''t you just freeze your salary and benefits until you retire with the promise of never getting laid off?

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Its what you say. I will never win back. You are also one of the people who believe BK will be just peachy for us all. In 1983 we lost a week of vacation time. We did get it back in 91. Nothing is forever. Not even American. I firmly believe we can fight, the good fight later. No one can win it today, or in BK.

Look at UAL''s unions. All that have settled have taken bigger over all cuts in dollar numbers. Add in the fact that we have more people than UAL. The cut per employee is even that much higher.
 
OP
Hopeful

Hopeful

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YOU company supporters don''t see that all the major airlines are playing the same fear factor game and you are rolling over to accomodate them. Their next step will get Congress to prevent airline workers from striking in the future. So AAviator and Mikey, I hope you still support AA when they are rolling in the dough and management starts getting raises and bonuses. But you still have your jobs, eh?
 

FA Mikey

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On 4/9/2003 10:32:12 AM Hopeful wrote:

YOU company supporters don''t see that all the major airlines are playing the same fear factor game and you are rolling over to accomodate them. Their next step will get Congress to prevent airline workers from striking in the future. So AAviator and Mikey, I hope you still support AA when they are rolling in the dough and management starts getting raises and bonuses. But you still have your jobs, eh?

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Not if we go through BK. I know I can do better later. I think you and a few of the other mechanics, are so scared. You are willing to sabotage the chance of avoiding BK. Rather than face up to the challenge of saving the company and of careers.

Last I read John McCain was not going to put the arbitration bill forward this year. We can fight that as well as what ever come up. We cannot save AA though with its current cost structure.