December 5, 2005

File:      CO-18

2005-167

Continental Negotiations Update

To All Continental Airlines Flight Attendants:

Your Flight Attendant Negotiating Committee will resume negotiations with Continental Airlines on December 7, 2005 in an effort to conclude a process started more than 14 months ago.  Whether we will be successful, or if the process will continue, is up to Continental’s negotiators.

IAM Flight Attendants have directed their Committee to secure retirement enhancements, preserve wages, improve commuter issues and address crew rest. The Union will not agree to a contract until these issues are resolved to your Committee’s satisfaction.

The National Mediation Board (NMB) has threatened to release the parties from mediation and into a thirty day cooling-off period if an agreement is not reached this week. The NMB’s threat and Continental’s public declarations that a final bargaining session will take place this week has done nothing to alter your Committee’s insistence that your demands be met. An agreement will be reached as soon as Continental meets our demands, and not a minute sooner.

Since a cooling-off period and countdown to a strike were not necessary in previous IAM Flight Attendant negotiations, a review of the process is appropriate.

At the end of the cooling-off period, both the company and Union will be free to seek self-help unless the President of the United States intervenes. Self help means the company can impose any wages, work rules and benefits it wants and Flight Attendants will be free to legally strike.

If the company agrees to your Committee’s terms at any time, a tentative agreement will be presented to the membership for your review and consideration. After members have an opportunity to attend informational meetings and have their questions answered, two votes will be taken.

The first will be to accept or reject the proposed terms. Acceptance by a majority of members participating in the vote is needed for ratification. Members who choose not to vote have no voice in the process.

The second vote is to authorize a strike in the event the proposed terms are rejected.

If Continental Airlines fails to agree to our demands and we do not reach an agreement, it is the policy of the Machinists Union to present the company’s last and final offer to the membership for their consideration, in addition to taking a strike vote. IAM Flight Attendants will have an opportunity to review the company’s complete proposal before voting to strike, even if an agreement with your Negotiating Committee is not achieved.

It is in Continental’s best interest to conclude negotiations quickly. It is in the Flight Attendants best interests to conclude negotiations when their demands are met.

Your Negotiating Committee’s only concern is returning with the best agreement possible, no matter how long it takes.

We will update the membership of our progress throughout the week.