- Dec 21, 2002
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- 347
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.
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.