Mechanics T/A


Nov 19, 2002
Associated Press
United Mechanics' Union OKs Contract
Friday April 11, 9:24 am ET
Union Representing United Airlines' Mechanics Announces Tentative Agreement on Contract

CHICAGO (AP) -- The union representing United Airlines' mechanics announced a tentative agreement Friday on a contract providing United with $2.09 billion in labor savings over six years.
The announcement represents another significant step for United in its bankruptcy restructuring. The mechanics' union was the only group that had failed to agree to a new long-term contract as part of the airline's push to slash labor costs drastically during its Chapter 11 reorganization.

The pact must still be ratified by the more than 10,000 mechanics and aircraft cleaners. Voting is scheduled for April 29.

Without an agreement, bankruptcy court hearings were set to begin Monday on United's motion to void the mechanics' contract May 1 and have its own wages and work rules imposed.

The International Association of Mechanics and Aerospace Workers said the yearly modifications to pay and benefits total $349 million under the pact, including a 13 percent cut in wages. If approved, that is the last remaining portion of the $2.56 billion in annual cuts sought by United.

From the moment United Airlines declared bankruptcy on Dec. 9, a painful restructuring was inevitable, said Scotty Ford, president of IAM District 141-M representing the mechanics. Despite proposed changes to pay, benefits and working conditions, this agreement preserves the essential value of a job at United Airlines.

United hoped to get a second dose of good news later Friday when the pilots' union was scheduled to announce voting results on ratification of a contract that would result in $1.1 billion in annual savings for United.

And like I said here earlier these are the highlights of your new
contract.Open wide here comes chunky.

The word is the deal is done.
Oakland is gone
Indy is gone
150-250 a month for your med. insurance
People who can retire now maybe should leave now
because they are going to pay a huge medigap premium
if they wait.
R+D is gone also
Temp paycut is permanent for life of 6 year contract extension.
The no layoff letter is modified.Layoffs until 1-01-90
will be permitted.Good luck

How many mechanics total in Indy and Oak??
1000 Indy
900 Oak ??
R+D another 500 at least??

Found out paycut is 13% and vacation,holidays remain the same.
We will do a,b,c checks only.C-checks will be brought back in house.
If this isnt ratified the company has a plan if they have to go to the judge
and from whatI have been told its the worst of the worst if we vote no.
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  • #3
I dont like it but I can live with it considering
the alternative.They will be able to layoff until
1-01-90 and a lot of good hardworking friends are
in that group,but hopefully if they want there will
be something left to come back to post layoff.My source
close to the negotiations told me if its rejected UAL
will implement a much more drastic plan.I plan to take
a station layoff and move back to the midwest and go to
school for a year or so.I wish all of us the best of
On 4/11/2003 12:39:32 PM aapitbull wrote:

Are we to understand that the total pay cut is 13 percent not an add. 13 percent to the temporary one imposed by the judge?


I believe that is exactly what it means......same wording as the f/a''s....the pay cut remains from January, no additional.
Are we to understand that the total pay cut is 13 percent not an add. 13 percent to the temporary one imposed by the judge?
They will be able to layoff until

1-01-90 and a lot of good hardworking friends are

in that group,but hopefully if they want there will

be something left to come back to post layoff.My source

close to the negotiations told me if its rejected UAL

will implement a much more drastic plan.

MORE DRASTIC than laying off half the mechanics? WOW.
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  • #7
Yes a worse plan than the one below.

April 11, 2003
1. Contract Duration Current Agreements are extended to May 1, 2009; terms of
Agreement are effective May 1, 2003 unless stated
2. Wage Reductions Base pay increases scheduled for March 14, 2003 and May
1, 2004 under the existing Agreement are cancelled; The
$.25 increase in the license premium scheduled for March
14, 2003 is also cancelled. Current base rates, license
premiums, skill pay, shift premiums, and the Hawaii
Differential, are reduced by 14.0% for the period January 14,
2003 through April 30, 2003; and 13% effective May 1,
3. Wage Increases All rates subject to reduction are increased as follows:
1.5% effective 5/1/04
1.5% effective 5/1/05
1.5% effective 5/1/06
1.5% effective 5/1/07
1.5% effective 5/1/08
4. Medical Plan Design Active employees will participate in a Company-wide PPO.
• In-network: Annual deductible -- $250 single/$500
family; 80/20 coinsurance; $1,500 single, $3,000
family out-of-pocket limit;
• Out-of–network: deductibles and out-of-pocket
limits same as in-network; 60/40 coinsurance.
• Prescription drugs at retail are subject to in-network
deductible and coinsurance. Mail order prescription
drug employee co-pay is $15 for generic and $45 for
name brand, up to 90-day supply. Co-pays subject to
increase equal to increase in mail order drug plan up
to 7% per year.
• Employees may opt-out/in of plan on annual basis,
and may continue participation in HMO provided
employee pays difference between HMO cost and
Company cost for PPO.
5. Health Ins. Contributions Establish employee contribution of 20% of required cost of
medical and dental plans. The increase in the employee
contribution is subject to a 7% per year cap.
6. Retiree Health Insurance For employees who retire on or after July 1, 2003:
• Pre-Medicare: Same coverage as actives; retiree
contribution varies with service at retirement as
follows: Less than 20 yrs. service – 80%
20 thru 24 yrs. service – 60%
25 yrs. service and over – 40%
For employees who retire on or after July 1, 2003 and before
January 1, 2006:
• Post-Medicare: Employee pays 50% of full cost of
For employees who retire on or after January1, 2006:
• Post-Medicare: Employee pays full cost of
supplement less $90 per month.
7. Retiree Death Benefit $10,000 if age 55 with 10 years and retired from active status
or illness leave.
8. Short-Term Disability Eliminate benefit ($53 per week for 26 weeks)
9. Scope – Heavy
The agreement is amended to permit the contracting out of
20 percent of the Maintenance Operation’s annual budget (as
previously defined) excluding the cost of heavy maintenance
visits. The Company may dispose of the Oakland and
Indianapolis facilities. IAM Inspectors must be assigned to
oversight inspection at any location where heavy
maintenance is performed on United’s equipment.
10. Scope – Receipt and
The Company may assign receipt and dispatch to any IAMrepresented
11. Lead Ratios The lead ratio is changed from 1:11 to 1:14; a lead is
required on any shift of 5 or more employees.
9. Paid Meal period Eliminate 15 minutes.
10. No Furlough Provisions
– Mechanic & Related
The provision protecting employees from lay off as a result
of contracting out is deleted under all agreements. The date
protecting employees from furlough, for any reason, is
moved to January 1, 1990 – i.e. no employee on the payroll,
on leave of absence, or on furlough with a right of recall as
of January 1, 1990 can be laid off over the term of the
Agreement. (If by July 1, 2003, the number of retirements or
other separations from service fall below 600 the January
protective date may be moved back by the number less than
10. Wage Progression –
All part-time and full-time Utility employees will be placed
on a new10-year progression in accordance with their current
service. Progression through the scale will subsequently be
based on calendar time, not work time.
11. Part-Time Utilization –
• Part-time may be employed while FT are laid off.
• Part time may be scheduled 6 hrs. per day, 30 per
week, with 1-hour separation between start times.
• Part-time employees will establish classification
seniority as of date of signing.
12. Dislocation – Utility No Utility employee, protected as of January 1, 1990,
located at BOS, ORD, DEN, LAX, SFO, WAS or NYA
points can be laid off or displaced to a different seniority
point as a result of contracting out.
13. No Furlough – FTI Protection after the probationary period is revised to provide
that 50 percent of active employees in each classification as
of March 11, 2003 will be protected against layoff.
Protection does not cover Flight Training Graphics Designer,
Flight Training Audio Tech., or Program Support
14. No Furlough – MI The protective date of December 20, 2000 is revised to
establish a minimum of 1 Maintenance Instructor for every
125 aircraft mechanics. Instructors will be located at ORD,
DEN and SFO.
15. Profit Sharing Plan Employees will participate in a UAL Profit Sharing Plan
with the following features:
• Purpose – The Plan is designed to enable employees
to participate in UAL profits if or when profit levels
exceed specified pre-tax margins: 8% in 2005 and
10% thereafter.
• Plan Years – Profit sharing payments will be made on
May 1 following each calendar year for the years
2006 through 2009.
• Formula – employees receive 15% of profits (defined
as UAL pre-tax earnings excluding unusual, special
or extraordinary charges, chargers for options and
profit-sharing) above the specified thresholds.
• Allocation – Employees covered by District 141
Agreements will receive a share of the profit sharing
pool equal to each group’s proportion of total labor
concessions. Within each District 141 group profit
shares will be allocated based upon relative gross
earnings during the Plan Year.
• Individuals may receive profit share in cash or as
401(k) deferral.
16. Incentive Program Employees will participate in a Company-wide incentive
program as follows:
• Prior to each calendar year beginning with 2004,
UAL’s Board of Directors will establish a Companywide
performance incentive formula with three
payment levels:
- Minimum – 2.5% of earnings
- Average – 5.0% of earnings
- Maximum – 10% of earnings
• The Annual Incentive Formula will be based on the
following four performance categories weighted by
the Board of Directors.
- Financial (e.g. profit margin)
- Operational (e.g. on-time performance)
- Customer Satisfaction (e.g. intent to purchase)
- Employee engagement/safety (e.g. lost time
• At the end of each year, actual performance is
measured against the established payment level; once
the threshold or minimum level is achieved,
employees receive 2.5% to 10% of pay (including
base pay, overtime, premiums, differentials etc.)
depending on the level of performance.
• Incentive payments are included in pay for pension
purposes. (MI and FTI)
• Payments are made on the same date payments are
made to management.
17. War Contingency In the event that due to the war in Iraq the Company is
required to seek further revisions to the District 141M
agreements, the parties agree that any such revision will take
the form of a temporary wage reduction which will be repaid
to the employees out of profits after the Company’s
emergence from bankruptcy.
18. Conditions • The Agreement is subject to (1) ratification of the
Agreement by the membership; (2) Approval by
UAL Board of Directors Labor Committee; (3)
Approval by the Bankruptcy Court.
• The Company agrees to withdraw its motion to reject
the Collective Bargaining Agreements provided the
Agreement is ratified by the membership.
Looks like the 13% wage cut is added to the 14% cut in January so it turns out to be a total of about 27% cut since the first of the year. Is that what is happening here?
On 4/11/2003 10:29:37 AM delldude wrote:

wow,looks almost like a mirror image of ours here at u....

No way!! You guyz got the worst deal at U. What do you guyz make $25-26 top? Also you guyz just had a 5% temporary paycut on top of that after the war started. Oh well.. that''s what happens when your company is the unhealthiest of the unhealthy big airlines in these not so healthy industry or economy right now!! Don''t worry we got the clause about the temporary paycut if things gets worst too.

Just wanted to let you know that on the 29th I''ll be "in essence" cancelling your YES vote.