May 21, 2010 Newsletter

Negotiations Planning Begins for Newest Members of Airline Division

Continental’s fleet service workers, who recently voted to join the International Brotherhood of Teamsters, are set to begin contract negotiations for their first contract on June 29th.  Negotiations with Continental will commence on that date in Houston, and IBT CAL Business Agents Bob Luciano (Local 210-New York City), Daisy Gonzalez (Local 769-Miami), Charles Alferio (Local 964-Cleveland) and Chris Moore (Local 19-Houston). IBT attorney Nick Manicone will also participate in those negotiations.  The negotiations will be chaired on the union side by IBT International Representative Dan Smith (Local 104-Phoenix).  Five fleet service members from the rank and file of the airline, whom will soon be announced, will also be on the committee and attending the meeting.

“We have a very busy schedule ahead of us,” said Smith. “We’re fortunate to have a very talented and dedicated set of Business Agents working with us, and more importantly, members of the rank and file who are sacrificing their time to help provide us additional input to help guide our discussions.”


“Our goal,” Smith concluded, “is to put together a solid package and a team that will negotiate effectively with management to obtain a strong Teamster contract, securing our members’ future.”

In preparation for this meeting, Dan Smith, Bob Luciano and Chris Moore will be meeting in Houston on May 26th and 27th to review a set of opening proposals.

Airline Division Director Meets with UAL and CAL Management

In Washington this week, Airline Division Director David Bourne and IBT Staff Attorney Ed Gleason held meetings with Doug McKeen Senior Vice President of Labor Relations for United Airlines, and Mike Bonds, Senior Vice President of Human Relations and Labor Relations for Continental. The Company officials were in Washington for meetings with the National Mediation Board regarding ongoing contract discussions at their respective properties and the pending merger of UAL and of CAL.

Director Bourne spoke directly with Mike Bonds about the Continental Fleet Service unit and various issues that have arisen since the IBT was certified as the bargaining representative for that workgroup.  Among the issues discussed was the Company’s elimination of various provisions from its “Fly-to-Win” Handbook immediately after the IBT was certified, as well as various access-to-the property issues.  Bourne and Bonds renewed their commitment to promptly establish a firm and fair foundation from which to engage in contract negotiations covering the unit. 

Bourne also discussed with McKeen and Bonds, the ongoing negotiations involving the mechanics and related workgroups.  They all expressed a desire and a commitment to reach agreements in a timely fashion.  In speaking about the meetings, Director Bourne said, “The meetings were very positive and I appreciate both gentlemen taking time to sit down and discuss the negotiations and the merger.   I reiterated to both that during the process, we will maintain our neutrality in terms of the merger, however, we intend to monitor both companies very closely regarding the treatment of their employees and their approaches and attitudes both in terms of contract discussions and employee treatment and respect.  As is the case in all airline mergers, good, solid working relationships between management and labor are an essential component to success.   I am very pleased that we have such relationships with both United and Continental and I am equally pleased that the carriers are as committed as the Teamsters are in strengthening those relationship even more.”

CAL Mechanics Negotiations Continue

Discussions on the contract for Continental mechanics will continue next week in Washington, DC with the National Mediation Board. The union negotiators will meet with the company and interim mediator Tony Iannone.

UAL/CAL Merger Resource Page to Debut Soon    

A webpage with specific information about the proposed UAL/CAL merger will soon be available to Teamster members. Hosted on the www.teamsterair.org website, the page will provide answers to many of the pressing questions and concerns that members have about the proposed merger. “We view this as a tremendous asset to our membership,” said Airline Division Director David Bourne. “While many facets of mergers are similar, each merger has differences as well. We hope that this soon to be active link will provide answers and help the membership become more informed.”

The link address and announcement will be sent as soon as the site becomes active in the coming days.

 

 Week In Review News Items

 

Labor Developments

A court of appeals Thursday overturned an injunction against strikes planned by British Airways’ cabin crew, and walkouts will occur unless the two sides agree to a contract…and a group of U.S. airlines filed a lawsuit Monday to stop the Obama administration from enforcing a new rule making it easier for unions to organize workers at airlines and railroads.   

Regulatory & Safety

A fire in the cockpit of a United Airlines flight from New York to Los Angeles caused an emergency landing outside Washington, a spokeswoman for the FAA said. The fire aboard the Boeing 757 was extinguished before the plane landed Sunday night at Dulles.  No injuries were reported. 

The head of the FAA says his agency isn't willing to be the scapegoat when airline flights are delayed. Randy Babbitt said Tuesday that delays are mostly caused by airlines cramming too many flights into the peak morning and afternoon schedules.  

 

Airline Industry Finances & Structure

British Airways reported a net loss of £425 million, or $614 million, for the year to March 31, compared with a loss of £358 million a year earlier. The deficit — the airline’s largest since being privatized in 1987 — came amid an 11 percent drop in revenue, to £7.9 billion…U.S. stocks yesterday suffered their biggest points fall since Feb-2009, with the Dow Jones industrial average plunging 376 points or 3.6% to 10,068. Expressjet slumped 15.1%, Air Canada lost a further 9.3%, United dropped 6%, Continental 5.4% and Delta 5.3%.

Low cost airlines love this place. The largest mainline carrier at Boston Logan Airport is JetBlue, which serves 38 destinations with about 90 daily departures. Boston is a focus city for AirTran, which has 21 daily departures to five cities. By October, Southwest will have 26 flights to six cities. And Virgin America operates five daily flights to California. Of all the big-city Northeast airports, only Baltimore and New York Kennedy have a larger low-cost presence.   

Miscellaneous

Has American Airlines, for decades the industry’s leader, been backed into a corner? First, Delta Air Lines’ merger with Northwest Airlines two years ago knocked American to No. 2. Now, the proposed union between United and Continental Airlines would push American down to third…and in what could set the stage for a fundamental shift in commercial aviation, an MIT-led team has designed a green airplane that is estimated to use 70 percent less fuel than current planes while also reducing noise and emission of nitrogen oxides.