August 12, 2005

File:      CO-18

2005-121

IAM/Continental Airlines

Negotiations Move to D.C.

To All Continental Airlines Flight Attendants:

Your Flight Attendant Negotiating Committee this week engaged in three days of negotiations with Continental Airlines representatives and a federal mediator in Washington, D.C.

This week’s session began with representatives from the IAM National Pension Plan (NPP) making a presentation to the parties and answering Continental’s questions about the Plan. One thing made perfectly clear is the stellar performance of the NPP, which is 127 percent funded, in comparison to the company’s underfunding of the Continental Airlines Pension Plan (CARP).

The Machinists Union is demanding that Continental preserve Flight Attendant pensions by either fully funding its existing pension plan (CARP) or transferring Flight Attendants into the IAM’s fully-funded, multi-employer National Pension Plan.

Continental recently paid its minimum pension contributions into CARP during the 2nd quarter in part by using ExpressJet stock. What is important to Flight Attendants is that by not fully funding the plan with cash, Continental endangers the stability of your pensions, which should not be tied to the performance of ExpressJet stock.

Your Flight Attendant Negotiating Committee and an IAM economist developed a comprehensive series of questions about CARP, which were submitted to the company. The responses we receive will be used to develop a side by side comparison, which we will distribute to Flight Attendants to help better understand both plans.

Information about the National Pension Plan is available at www.iamnpf.org and Flight Attendants are encouraged to contact an IAM Representative with any questions about the Plan. 

The Machinists Union has provided Continental with two options to preserve your pension benefits and we will take whatever steps are necessary to ensure the retirement security of our Flight Attendants.

Continental representatives made a financial presentation to your Committee on the state of the company and the entire industry. Your Negotiating Committee has asked the company for additional information on how the continuing increase in fuel prices will affect the company’s financial condition.

Progress was made this week on the membership’s proposal to eliminate preferential bidding, sick and occupational injury (OI) leave provisions, numerous reserve issues and on attaining a “me too” clause to ensure that Flight Attendants receive any additional compensation afforded other employee groups, including management.

Additionally, your Negotiating Committee demanded that the two new 777’s Continental recently purchased come with factory-installed crew bunks. The company has refused, but the IAM’s position remains that all new 777’s must have factory-installed bunks prior to delivery.

The next mediated negotiating sessions are scheduled for September 13, 14 and 15 in Houston, TX. Your Committee will be available in the crew rooms to answer Flight Attendant questions about negotiations when not in sub-committee meetings with the company, which will continue in between mediated sessions.

Sincerely and fraternally,

                                                                     William O'Driscoll                      

                           PRESIDENT-DIRECTING GENERAL CHAIRPERSON                              

 

 Brent Thompson                      Art Teolis                               Julie Frietchen

   Brian Wozniak                     Larry Newcomb
             GENERAL CHAIRPERSONS

 

      Robert Korzuch II                            Ed Miller                                Rosalie Canton

PRESIDENT LL #2339N         PRESIDENT LL #2339C           PRESIDENT LL #2339H

 

                                     Ernie Dominguez                                           Sheila Hammond

                                BASE CHAIRPERSON                  NEGOTIATING COMMITTEE MEMBER