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

Friday, June 10, 2005

Machinists Call for Long-Term Pension Reform. IAM General Vice President Robert Roach, Jr. was joined by leaders from the Airline Pilots Association International (ALPA) and the Association of Flight Attendants - CWA, AFL-CIO, at a Senate Finance Committee hearing in Washington, D.C. to examine the collapse of traditional pension plans at United Airlines. 

“Today, every airline with a government-insured defined benefit pension plan is looking to shed their commitments onto the Pension Benefit Guaranty Corporation (PBGC) and, ultimately the American taxpayer,” said Roach in his testimony. “If one of our members walked away from their financial commitments like the airlines are doing, they would be held accountable. In contrast, airline executives who abandon billion dollar pension obligations and induce personal bankruptcies receive accolades from Wall Street.” 

Citing the recent pension meltdown at United Airlines and US Airways in addition to the 2001 pension default at TWA, the IAM warned that current pension funding laws contain loopholes that compound the problem. “The rules create a countercyclical funding burden,” said Roach. “Companies aren’t required to put money into pension plans even when they are not 100 percent funded and, in most cases, when they can afford it. Consequently, a day of reckoning comes when corporations must put in enormous sums to catch up. This loophole should be closed.” 

The IAM testimony, available at http://transportation.goiam.org, included support for a moratorium on PBGC-initiated terminations and urged Congressional action to protect multi-employer plans as viable replacement options for participants in failed single employer plans. 

The Union has mailed out an issue card regarding securing of pension benefits in the current round of negotiations.  It will be posted on the IAM web site also at www.iamdl142.org.             

As we previously advised, negotiations have been suspended and will resume on June 20, 2005. The company stated they would present the IAM with a counter proposal at that time.  We expect the company’s proposal will address the demands your Committee has made on your behalf.  Your District and Local Lodge Representatives will continue to be present in the crew rooms to answer your questions.  We will update you with information as it becomes available.   Thank you for your continued support.

At Continental Micronesia, surveys were conducted in April in preparation for negotiations.  The Continental Micronesia contract becomes amendable on July 1, 2005.  No dates have been scheduled for meetings at this time. 

ExpressJet grievance representatives would like to remind all flight attendants that potential personality issues with crew members should be resolved before flight assignments and to remember that it is encouraged to fly now and grieve later when a non safety sensitive conflict occurs. 

As previously reported, negotiations were last held at ExpressJet on Wednesday, April 27, 2005 in Houston.  We concluded agreements on Sections 13, 16, and 18.  We finalized resolutions of all Letters of Agreement.  We continue discussions on the method in which you are paid.  We had extensive discussion on Occupational Injuries.  The Company’s attitude was positive dealing with your issues.  No new dates have been scheduled at this time.  Your patience is appreciated.  Your support is essential to reach an agreement that you will ratify. 

Monthly revenue statistics indicate Continental Airlines may report a second-quarter profit, airline analysts say. Strong demand helped Continental's revenue per available seat mile jump 9.5% in May, compared with the same period a year ago.  

The business meeting has been changed to June 21 and the Guam business meeting has been changed to June 22 so that delegates may attend the IAM Transportation Conference being held the week of June 13, 2005 in New York City. 

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, June 22, 4:00 p.m. at the Airport Conference Room;

Houston: Wednesday, June 22, 1:00 p.m. at 15710 JFK Blvd;

: Tuesday, June 21, 3:00 p.m. at the Airport Hilton Hotel.