Negotiations with Continental Airlines resumed on June 20, 2005 in Houston, TX.  No progress was made.   Continental has advised the IAM they intend to apply for assistance from federal mediators.  Under the Railway Labor Act, when the parties are unable to reach an agreement in direct negotiations, an application to the National Mediation Board is made and negotiations will resume under the auspices of this federal agency. We will advise the membership when a mediator is assigned and when negotiations are scheduled to resume.  Please keep in mind that the negotiations process will continue on the government’s schedule.  Also be aware that the Company has not applied for arbitration but rather mediation as proscribe under the Railway Labor Act (RLA).  More information will be forthcoming.  Your negotiating committee continues to work hard to ensure a favorable outcome.  With your help, we will do whatever is necessary to ensure a fair contract and secure retirement.  Thank you for your continued support. 

Negotiations are scheduled to resume with ExpressJet on Monday June 27, 2005.  Your negotiating team will be meeting in Houston to try to reach a tentative agreement that can be brought out for ratification. 

The Continental Micronesia contract becomes amendable on July 1, 2005.  We will update you with any meeting dates as they become available.   

United Airlines and its machinists union reached a tentative agreement that will reduce the company's costs by about $175 million a year. Voting on the contract ends July 22, 2005. The agreement will also allow United to terminate the United Airlines Defined Contribution plan and replace it with the IAM National Pension Plan.  The McCormick group backed AMFA, ratified a tentative agreement that will result in $96 million in annual reductions and 3.9 percent pay cuts, among other conditions.  The McCormick group also backs the u.i.f.a. organizing campaign at Continental. 

Northwest Airlines is struggling to cut costs as it faces soaring jet fuel prices and steep competition from discount airlines. Some analysts say the airline may eventually file for bankruptcy. The airline has said bankruptcy is not at the top of its list of options, but has acknowledged it is a possibility if the company does not start posting profits. Meanwhile, Northwest Airlines employees are worried about pay cuts and the future of the airline. One frequent flier said the airline's customer service has declined as it has cut costs. 

U.S. airlines are boosting service to India, USA Today reported. In April, the U.S. and India signed an agreement easing rules that limited service. Continental Airlines will launch the first direct service between the U.S. and India, while Northwest Airlines and Delta Air Lines plan connecting flights. Three Indian airlines also plan to add service. 

The House should not add specific airline aid to a bill aimed at tightening rules for corporate pensions, the sponsor of the bill said Wednesday. However, Rep. John Boehner, R-Ohio, said he would not rule out adding specific relief later in the legislative process, Reuters reported. Meanwhile, the Pension Benefit Guaranty Corp., said Congress should not extend the amount of time airlines have to catch up on their pension contributions, Scripps Howard News Service reported. Delta Air Lines and Northwest Airlines have said they need more time to fully fund their pension programs. 

The number of workers employed by U.S. airlines fell to 451,915 in April 2005, down 2.8% from a year earlier, according to the U.S. Department of Transportation's Bureau of Transportation Statistics. The number of workers at the seven network carriers fell 6.1% from April 2004. 

Crude oil reached an all-time high of $60.05 per barrel during trade on the New York Mercantile Exchange before settling Thursday at a record $59.42 per barrel. The cost for a barrel of crude oil has jumped more than $10 in the last 30 days. 

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, July 14, 4:00 pm at 669 North Rocky River Drive; 

Guam: Wednesday, July 20, 4:00 p.m. at the Airport Conference Room;

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