April 18, 2024

United Continental Pilots Approve Joint Union Contract

United Airlines pilots have agreed to a new joint union contract, bringing the airline closer to finalizing its merger with Continental.

The new four-year contract, which includes raises averaging 43 percent and bigger retirement contributions, covers those who came from United as well as pilots who flew for Continental before the carriers merged in 2010 into United Continental Holdings Inc. Pilots now only fly under the United name.

As part of the deal, the airline’s roughly 10,000 pilots also will divide a $400 million lump sum. In exchange, the contract gives United Continental the ability to launch a major expansion of the use of larger regional jets with 70 or more seats. Those jets, most ranging in size from 50 to 76 seats, are operated by regional airlines.

United and other carriers have been especially eager to expand usage of the larger 76-seat planes because they can be flown profitably even at higher fuel prices. But pilots at the big airlines generally oppose them because they don’t want the airline to shift too much flying to the smaller, cheaper planes.

The raises and some other changes take effect immediately. However, United and former Continental pilots are still flying separately, a practice that will continue until they finish sorting out the seniority list.

Seniority is important to pilots because it governs who gets the most desirable schedules and who gets to fly which planes, which is a big factor in their pay. Seniority integration is expected to take several months and often includes binding arbitration.

The Air Line Pilots Association said Saturday that 67 percent of the United and Continental pilots who voted elected to approve the contract. All told, nearly 98 percent of the 10,193 eligible pilots participated in the ratification vote.

For pilots who came from United, the new contract replaces a deal made in 2005, when that airline was operating under bankruptcy protection. Union representatives for United and Continental pilots said the contract hails the end of bankruptcy and concessionary contracts.

“For too long, the pilots of United and Continental have had to shoulder more than their share of the burden as our respective airlines struggled through the difficult economic times of the past decade,” the union representatives said in a statement. “We now stand ready to embark on a fresh start for the pilots and the airline.”

United Continental, based in Chicago, called the contract ratification an important step for its pilots, as well as the company, which now will get to use more regional jets. Right now, United is using just 153 jets with 70 seats. The new contract allows it to add 68 more in that size range starting in 2014, and more in future years if it also adds planes with more than 100 seats. The new contract represents an even bigger departure from Continental’s old limits on regional jets.

United is the world’s biggest airline by traffic. Its main competitor is No. 2 Delta Air Lines Inc., where pilots over the summer approved a contract that also allows it to add more 76-seat regional jets. Pay under the new United contract is also similar to Delta’s, which is widely considered a model in the industry.

At American, a new deal approved by pilots on Dec. 7 will allow the addition of 76-seat regional jets and an expansion of the number of larger regional planes. Currently American has 47 regional jets seating a maximum of 65 passengers, while the rest of its regional jets all have 50 or fewer seats.

Article source: http://www.nytimes.com/aponline/2012/12/15/business/ap-us-united-continental-pilots.html?partner=rss&emc=rss

American Airlines and Pilots Agree on a New Contract

Opinion »

Editorial: A Test on the Right to Vote

The Supreme Court will reckon with Congress’s power to address persistent discrimination.

Article source: http://www.nytimes.com/2012/11/10/business/american-airlines-and-pilots-agree-on-a-new-contract.html?partner=rss&emc=rss

G.M. Plans to Reopen Former Saturn Plant in Spring Hill, Tenn.

Mr. Poynor said he made the nine-hour drive back to Tennessee to see his wife and three children 24 times in the first year alone. “I’d go back tomorrow if I could,” Mr. Poynor said Wednesday after finishing his overnight shift in Lansing, Mich.

He and hundreds of other autoworkers may get that chance.

In a glimmer of light in a mostly downbeat economy, G.M. and the United Automobile Workers union have agreed to give the plant here a second chance as part of a tentative new labor contract. It is highly unusual for an automaker to bring jobs back to a factory all but left for dead, and several G.M. plants, including Spring Hill, will be adding work that had been headed to Mexico.

“I actually have a smile on my face today,” Mike O’Rourke, the president of U.A.W. Local 1853 in Spring Hill, said after learning the details of the contract. “It was very much gloom and doom. I lost all my hair and gained 50 pounds.”

The resurrection of Spring Hill would be another milestone in the fortunes of the domestic auto industry and, in particular, G.M.’s comeback from its government bailout and bankruptcy in 2009. The promise in the new contract of 6,400 jobs over the next four years, including 1,700 here, is being seen as a vote of confidence that autoworkers in the United States, even unionized ones, can compete with lower-wage nations.

Some of the jobs here will go to current G.M. workers at full wages of $28 an hour, but many of the workers will be hired on G.M.’s second-tier pay scale, which would start around $15 an hour in the new contract.

“We’re bringing back a lot of work that left this country,” the U.A.W.’s president, Bob King, said of the contract, which is subject to ratification by G.M.’s 48,500 workers in the United States.

Perhaps nothing better symbolizes the ragged journey of Detroit’s Big Three in recent decades than the Spring Hill plant, which was built in the 1980s as the launching pad for G.M.’s highly promoted Saturn division.

In the 1990s, thousands of Saturn owners traveled here for “homecoming” parties to celebrate their bond with the vehicles and the workers who made them. The plant became known to TV viewers after G.M. hired the advertising agency famous for creating President Ronald Reagan’s upbeat “Morning in America” re-election ads. Commercials featured the plant and its workers with the slogan, “A different kind of company, a different kind of car.”

But the Saturn brand never lived up to its promise and is now a casualty of G.M.’s bankruptcy. The only work being done at the plant here, 30 miles south of Nashville, is a much smaller operation making engines. James L. Bailey, the mayor of Maury County, which includes Spring Hill, described the past two years as “a time of trauma.”

Unemployment in the county rose as high as 17 percent after the plant closed; the rate is now about 13 percent. In nearby Columbia, where many G.M. workers lived, downtown storefronts emptied and homes went into foreclosure. The Santa Fe Cattle Company, a steakhouse with a U.A.W. flag in its foyer, closed, and this year’s graduating high school class lost 85 students after the plant shut down.

“They bought a lot of things, they did a lot of things,” Mr. Bailey, who works out of a cramped, century-old courthouse in Columbia’s town square, said of G.M. workers. “When they went away, it affected a lot of businesses here.”

G.M. declined to publicly comment on the Spring Hill decision. The company has avoided discussing specific terms of the agreement until it is approved by members.

People with knowledge of the negotiations said that union leaders pressed hard in the final stages of the talks for Spring Hill to be reopened. Michael Robinet, an analyst with the research firm IHS Automotive, said the company saw an opportunity to make inroads with the U.A.W. while bringing back a facility at a relatively low cost.

Nick Bunkley reported from Spring Hill, Tenn., and Bill Vlasic from Detroit.

Article source: http://feeds.nytimes.com/click.phdo?i=c24f7edbe7b1b4a68c32f4f7fdb0bed1

G.M.’s Former Saturn Plant in Spring Hill, Tenn., May Reopen

Mr. Poynor said he made the nine-hour drive back to Tennessee to see his wife and three children 24 times in the first year alone. “I’d go back tomorrow if I could,” Mr. Poynor said Wednesday after finishing his overnight shift in Lansing, Mich.

He and hundreds of other auto workers may get that chance.

In a glimmer of light in a mostly downbeat economy, G.M. and the United Automobile Workers union have agreed to give the plant here a second chance as part of a tentative new labor contract. It is highly unusual for an automaker to bring jobs back to a factory all but left for dead, and several G.M. plants, including Spring Hill, will be adding work that had been headed to Mexico.

“I actually have a smile on my face today,” Mike O’Rourke, the president of U.A.W. Local 1853 in Spring Hill, said after learning the details of the contract. “It was very much gloom and doom. I lost all my hair and gained 50 pounds.”

The resurrection of Spring Hill would be another milestone in the fortunes of the domestic auto industry and, in particular, G.M.’s comeback from its government bailout and bankruptcy in 2009. The promise in the new contract of 6,400 jobs over the next four years, including 1,700 here, is being seen as a vote of confidence that auto workers in the United States, even unionized ones, can compete with lower-wage nations.

Some of the jobs here will go to current G.M. workers at full wages of $28 an hour, but many of the workers will be hired on G.M.’s second-tier pay scale, which would start around $15 an hour in the new contract.

“We’re bringing back a lot of work that left this country,” the U.A.W.’s president, Bob King, said of the contract, which must be ratified by G.M.’s 48,500 workers in the United States.

Perhaps nothing better symbolizes the ragged journey of Detroit’s Big Three in recent decades than the Spring Hill plant, which was built in the 1980s as the launching pad for G.M.’s highly promoted Saturn division.

In the 1990s, thousands of Saturn owners would traveled here for “homecoming” parties to celebrate their bond with the vehicles and the workers who made them. The plant became known to TV viewers after G.M. hired the advertising agency famous for creating President Ronald Reagan’s upbeat “Morning in America” re-election ads. Commercials featured the plant and its workers with the slogan, “A different kind of company, a different kind of car.”

But the Saturn brand never lived up to its promise and is now a casualty of G.M.’s bankruptcy. The only work being done at the plant here, 30 miles south of Nashville, is a much smaller operation making engines. James L. Bailey, the mayor for Maury County, which includes Spring Hill, described the past two years as “a time of trauma.”

Unemployment in the county rose as high as 17 percent after the plant closed; the rate is now about 13 percent. In nearby Columbia, where many G.M. workers lived, downtown storefronts emptied and homes went into foreclosure. The Santa Fe Cattle Company, a steakhouse with a U.A.W. flag in its foyer, closed, and this year’s graduating high school class lost 85 students after the plant shut down.

“They bought a lot of things, they did a lot of things,” Mr. Bailey, who works out of a cramped, century-old courthouse in Columbia’s town square, said of G.M. workers. “When they went away, it affected a lot of businesses here.”

G.M. declined to publicly comment on the Spring Hill decision. The company has avoided discussing specific terms of the agreement until it is approved by members.

People with knowledge of the negotiations said that union leaders pressed hard in the final stages of the talks for Spring Hill to be re-opened. Michael Robinet, an analyst with the research firm IHS Automotive, said the company saw an opportunity to make inroads with the U.A.W. while bringing back a facility at a relatively low cost.

Nick Bunkley reported from Spring Hill, Tenn., and Bill Vlasic from Detroit.

Article source: http://feeds.nytimes.com/click.phdo?i=ed92fff98cd5a6af0516c6bd680c0bee