Friday, July 22, 2005

As previously announced, At ExpressJet your IAM Flight Attendant Negotiating Committee announced a tentative agreement for new contract terms between ExpressJet Airlines and its 1,200 IAM–represented Flight Attendants.   Despite the dire condition of the entire airline industry and a coordinated attack on union-won wages and benefits, the IAM was able to achieve a total compensation package that is the best in the regional industry. The Flight Attendant Negotiating Committee unanimously recommends approval of this tentative agreement.  The four-year agreement includes up to 35 percent base wage increases as well as other compensation improvements, an enhanced 401-K plan, additional job security and scheduling improvements. Complete details are available on the District 142 website, www.iamdl142.org/fa.  Membership ratification is taking place at all three bases from July 18^th through July 24^th 2005. A separate strike vote is also be conducted with the ratification vote.  

As previously reported, at Continental, the Company has requested mediation in the ongoing contract negotiations and federal mediator Pat Sims has been assigned.  The National Mediation Board has schedule mediation meetings July 25 and 26, 2005 in Houston, TX.  We hope this process will lead to an agreement for ratification.  We will keep you advised of all future developments as they occur.   

At Continental Micronesia, the District met with management regarding two outstanding grievances and one termination.  The District is still awaiting decisions in these cases. 

Representatives from ALPA at ExpressJet have contacted the Union and requested that we remind all flight attendants that the dress code for jumpseat on ExpressJet is business casual.  Please be respectful of this when jumpseating at either ExpressJet or Continental. 

The IAM today announced ratification of six amended collective bargaining agreements with United Airlines. The four and a half year agreements are the result of negotiations under Section 1113(c) of the U.S. bankruptcy code and preserve existing IAM contracts at the carrier while providing a defined benefit pension plan to replace the plans terminated by agreement between United and the Pension Benefit Guaranty Corporation. “Our negotiators were able to leverage the strength of a ninety eight percent strike authorization to not only reject United’s harshest proposals, but to also establish a new defined benefit pension plan for our members,” said Robert Roach, Jr., IAM General Vice President of Transportation. “Our negotiators did a remarkable job under the most difficult circumstances imaginable.”  IAM members in the Ramp & Stores, Public Contact, Fleet Technical Instructor, Maintenance Training Instructor, Security and Food Service Worker classifications each ratified their respective agreements. Ratification of the agreements prevents bankruptcy court abrogation of the contracts and a strike by the IAM’s 20,000 members at United.

Northwest airlines announced that it will freeze the pension plan that covers about 3,300 salaried employees and make contributions to the employee's 401(k) investment accounts instead. The move could make it easier for the airline to go to the bargaining table and persaude unionized workers to accept a similar move. The airline has said controlling pension costs is vital for its financial health.  Northwest Airlines rejected the National Mediation Board's offer to arbitrate a settlement between the company and its mechanics union. The National Mediation Board released Northwest Airlines and its mechanics union from contract talks Wednesday. The move triggers a 30-day cooling off-period after which the workers are free to strike. The two sides are expected to continue negotiations until the deadline of Aug. 19. Northwest said it will continue flying if the workers strike.  

Continental reported second quarter 2005 net income of $100 million or $1.26 diluted earnings per share. Second quarter 2005 operating income improved by $79 million to $119 million, compared with the second quarter of 2004, primarily due to significant revenue improvement and a decline in wages, salaries and related costs.  Despite reporting a profit for the second quarter, CO executives cautioned that the company still expects to lose a substantial amount of money in 2005. 

Business fares hit a five-year low in the first quarter, averaging $202 for a one-way trip, according to American Express Business Travel Monitor. Average fares have declined 13.7% from the same period a year ago. However, fares may be on an upward swing: In April, the average domestic fare increased to $210 for a one-way ticket. 

We would like to encourage all members to attend your Local Lodge business meeting. Each base must have a quorum to conduct business. The following is a schedule for upcoming meetings:  

Cleveland: Thursday, August 11, 4:00 pm at 669 North Rocky River Drive;

Guam: Wednesday, August 17, 4:00 p.m. at the Airport Conference Room;

Houston: Wednesday, July 27, 1:00 p.m. at 15710 JFK Blvd;