Friday, July 29, 2005

After seven consecutive days of voting, IAM-represented ExpressJet Flight Attendants have rejected the terms of a tentative agreement with the airline.  Consequently, the wage increases scheduled for August 1, 2005 will not take effect. Under a separate vote, strike authorization was conducted.  Certainly, in face of the rejection of the tentative agreement, the Negotiations Committee will be guided by those results.  That count is expected later this week from District Lodge 142.  Upon receiving those results, the Committee will meet to discuss the situation and determine the best course of action.  You will be advised of any new developments as they occur.

The Union and the Company met on July 25 and 26, 2005 in Houston, Texas for our first discussions with Federal Mediator Pat Sims, from the National Mediation Board.  Mediator Sims explained her role and how the mediation process will continue going forward.  She met separately with the Company and the Union to hear from each side the open issues, which are preventing an agreement.  Your negotiating committee advised the mediator of all the issues submitted by the membership since the failed tentative agreement.  Mediator Sims expressed grave concerns over how far the parties are from reaching an agreement.  She stressed that we are now under the auspices of the National Mediation Board and “it can’t be reversed”.  She emphasized that reaching an impasse in mediation or facing the uncertainties of a Presidential Emergency Board were directions she hoped could be averted and that all her efforts would be directed toward avoiding those scenarios.  While we had no control over the Company’s request in applying for mediation, it appears this is the direction the Company would prefer.  No negotiations were conducted at this first meeting.  Mediator Sims scheduled the next round of meetings to be held in Washington, DC on August 9, 10 and 11.   We will keep you advised of all future developments as they occur. 

Northwest Airlines posted a large second-quarter loss of $225 million and warned it needs $1.1 billion in labor cost savings. The company also said it needs pension reform to avoid filing for bankruptcy. The carrier blames high fuel prices which have increased 52% compared with the same quarter a year ago.

Pension obligations and high fuel prices are two pressing concerns for Delta Air Lines, the company's chief executive said. Pension reforms must happen "as soon as possible" to have a positive effect on the airline, Gerald Grinstein said. Some observers believe the company may have to file for bankruptcy over its pension obligations.

United Airlines Chief Executive Officer Glenn Tilton’s restructuring of the carrier included cutting 24,000 jobs and slashing $3 billion from employees' wages and benefits. He also turned the company's underfunded pension plan over to the federal government. On Thursday, the carrier reported a second quarter net loss of $1.43 billion or $12.33 per share, which includes $1.39 billion in reorganization items.

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, August 24, 1:00 p.m. at 15710 JFK Blvd;

: Tuesday, August 9, 3:00 p.m. at the Wyndam Hotel.