The Update Message from the International Association of Machinists representing Continental, ExpressJet and Continental Micronesia
Flight Attendants in the 2339 Local Lodges

Friday, December 15, 2006

ExpressJet Charter Negotiations Update – Recently, the company announced (CIL 6-70), a new Flight Attendant position, called “Corporate Aviation Specialist.”  This new flight attendant position will be assigned to work special charter flights marketed by XJT to corporations, schools, clubs and other private organizations.  In addition to announcing a new job classification for Charter F/A’s, the company also announced a new Charter F/A selection process, new scheduling work rules, a new charter override pay, a new daily pay rate, a new minimum monthly guarantee, and new time off minimums for Charter F/A’s. This Charter operation is being developed by XJT to create a new source of revenue, utilizing 69 surplus aircraft that were removed from the CAL – XJT Capacity Purchase Agreement, by CAL. We believe the company only provided a brief and incomplete description of the challenging and arduous conditions and the unknown additional duties that Charter F/A’s will be facing.  Although these items were discussed at the negotiating table, your negotiating committee did not agree to any of the terms, conditions or compensation the company has announced.  We feel the compensation the company is offering is inadequate in comparison to the long hours, additional duties and quality of life losses that corporate charter flying requires.  Under federal law, a company cannot unilaterally introduce new job classifications, work rules, compensation and working conditions, without negotiating with and obtaining agreement from the Union which represents its employees.  Following a Charter Operation negotiating session yesterday, December 14, 2006, your Union negotiating committee informed the XJT negotiators that we intend to pursue appropriate legal remedies, if the company persists in skirting the law.  Charter negotiations will continue in January, 2007 – Art Teolis, Julie Frietchen & Brian Wozniak, IAM District 142 General Chairpersons.

IAM Responds To United/Continental Merger Rumors – December 13, 2006 - The International Association of Machinists and Aerospace Workers' (IAM) General Vice President Robert Roach, Jr. today issued the following statement in response to media reports that Continental Airlines and United Airlines are discussing a possible merger:  "The Machinists Union has not been contacted by United or Continental about any potential merger.  The IAM is fully prepared to defend the wages, contracts and defined benefit pension plans earned by our 25,000 members at United and Continental.  The IAM’s Transportation Merger Team is also prepared to respond to any airline merger scenario.  In the event a United-Continental merger did occur, United’s Flight Attendants could gain the defined benefit pension plan currently enjoyed by our United Airlines members and being ratified by our Continental Flight Attendants."   The IAM represents 16,000 United Airlines Ramp & Stores, Public Contact, Food Service, Fleet Technical Instructor, Maintenance Instructor, Security Officer and Food Service employees. United's IAM members are the airline's only employees to successfully negotiate a defined benefit pension plan in bankruptcy, the multi-employer IAM National Pension Plan.  The Machinists Union also represents more than 9,000 Continental Airlines Flight Attendants; the highest paid Flight Attendants in the industry.  Already the largest union at Continental, the IAM has active organizing campaigns underway for the airline's Fleet Service, Passenger Service and Reservation employees.

Continental Flight Attendants can now review a Pension Plan Q & A that addresses many of the most frequently asked questions and provides answers for you to consider.  Copies of the Q & A are available in the crew rooms at the Union Desk or you can view them online at www.iamdl142.org/fa right now.  Learn more about what you have to gain by transitioning to the IAM National Pension Plan.  Visit the NPP website at www.iamnpf.org for more information.

EEMK General Grievance Update – As previously reported, District 142 has filed a General Grievance over the disciplinary action taken over the EEMK incident.  Representatives of District 142 have heard the grievance at the lower step of the grievance procedure in accordance with Section 19 of the IAM/CAL collective bargaining agreement.  The case has been denied and appealed to the President of the Company and a meeting is being scheduled.  A denial at this step will result in the scheduling of arbitration before a neutral arbitrator for final resolution of this grievance.  We will update you with information as it becomes available.

Airline Mergers Far From Done Deals – Each proposed merger in the airline industry faces serious obstacles. Delta Air Lines says it wants to emerge from bankruptcy as an independent, rather than merge with US Airways. Continental Airlines says it is not interested in merging with United Airlines or other carriers.  On Wednesday, Continental CEO Larry Kellner indicated he wasn't interested in merging with another major U.S. carrier, saying he was "satisfied with the airline's position in the market as it stands," the Jerusalem Post reported.  At a press conference in Tel Aviv, Kellner added, "There has been a lot of consolidation activity recently but we prefer that Continental remain independent, as we feel we are very well-positioned in the market at the moment."

Holiday Travel Expected To Set New Records – Travel experts estimate that 65 million Americans will be on the roads, in the air and riding the rails during the holidays this year, more than 2% above last year's record. The Air Transport Association is predicting the busiest day at the nation's airports will be Dec. 21, when carriers will service some 2.3 million passengers.

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:

:      Tuesday, January 9^th, 3:00 p.m. at the Doubletree Airport Hotel.