August 27, 2011 Newsletter

Airline Division, UAL Management to Meet On Company Hangar Plans

Leadership of the Airline Division and leadership from both Teamster units at UAL and CAL will meet on September 1st with the leadership of United Airlines to discuss the company's hangar plan as they come closer to achieving their single operating certificate. The company has expressed a desire to have the ability to cross utilize aircraft and facilities to take advantage of merger synergies.

The Airline Division has made clear its position that in order for the company to do this they need to complete an amalgamated agreement, and the first step to achieving that goal is to finalize a stand alone agreement for the United mechanics and related. To that end, the Division intends to press the point at this meeting and insist that the company return to the table prior to the upcoming mediated talks to finish the United mechanics agreement.

United Airlines Mechanics and Related Bargaining Survey is Online

In order to accurately gauge the needs of and to best serve the membership, the Airline Division has created a survey regarding the recent tentative agreement (TA).

Information collected will help the Division prepare for mediated negotiations which are scheduled to begin early next year. While certain personal information (Name and employee ID) are required to access the site and ensure survey integrity, this information is removed and not shared with the Division. Members are encouraged to please fill out this survey so that the Division and Negotiating Committee can best represent the bargaining priorities of the membership. The survey will be active until September 30th 2011. To participate, simply click on the link here, UAL Mechanics & Related Bargaining Survey

Significant Progress Reported in Negotiations for AAWW Dispatchers

Representatives for Atlas Air World Wide (AAWW) dispatchers report significant progress in their August meetings with management. Tentative Agreement (T/A) was reached on Articles 5a, (Moving Expenses), and Article 6, (Vacations and Holidays). Article 7, (Hours of Service), was discussed at length and has been agreed to all but one area involving economics. The initial proposal for Article 4, (Overtime) was also presented. With the progress achieved at the August session, 14 of 21 contract articles areas have been concluded, leaving mostly economic issues unresolved.

An economic advisor from the IBT will be meeting with the committee in September prior to the scheduled negotiating session with the company to discuss these remaining economic areas. Future meetings with the Company will be attended by the economic advisors from both sides of the table to enable both sides to move forward in these areas and hopefully closer to completing our contract.

The next scheduled meetings for the group are at the end of September.

Airline Industry News

Regulatory and Governmental

FAA Administrator Randy Babbitt presented Boeing with the Type Certificate for the 787 on Friday…Delta Air Lines has been opposed to changes in unionization rules, but the carrier says it will back the pro-union provision if voting out a union is as easy as adopting one, says Gina Laughlin, a spokeswoman for Delta…In a new rule that took effect this week, former FAA Inspectors will be barred from working for an airline for two years after leaving the agency…New consumer-protection rules for airlines go into effect Tuesday, extended tarmac-delay fines for international airlines of up to $27,500 per passenger and increased compensation for passengers who are bumped because of an oversold flight.

Industry

John Heimlich, chief economist at the Air Transport Association, says the airline industry is planning changes in an effort to earn steady profits. "What we want is a leaner industry that no longer carries every person at any cost," Heimlich said. "Business will become a bigger part of the mix."

Jeff Smisek, president and CEO of United Continental Holdings, says the largest problem the airline industry faces is the government's failure to develop a coherent aviation policy…Delta has announced it will purchase 100 new 737-900 jets from Boeing.