United and IAM Announce Tentative Agreements

On April 4, 2016, United and IAM announced that they had reached seven tentative agreements covering approximately 30,000 workers, including passenger service (above-wing), fleet service (below-wing), reservations, and stores along with some other smaller workgroups. These TAs are the culmination of the early expedited negotiations on a “limited number of issues” United and IAM announced in November 2015 in lieu of full Section 6 negotiations that would have otherwise begun no earlier than mid-2016.

The 5-year deals provide for scale increases of between 10% and 24%, depending on the step. Top-of-scale rates will increase by approximately 18%, to $29.87 for above-wing, below-wing and stores, and $29.57 for reservations. These rates, which will not go into effect until November 15, 2016, will be higher than Delta’s December 2015 rates by approximately 2% (supply attendants), 4% (reservations) and 5% (above- and below-wing). Starting on December 1, 2017, and each December 1 thereafter until 2021, negotiated scale increases are: 2%, 2.5%, 2.5%, 2% and 2%.

United’s profit sharing plan was not changed and remains 5% for pre-tax profit up to a margin of 6.9% and a maximum of 10% for profit above that margin. For 2015, United’s plan paid out only 6.5% of earnings. By contrast, Delta’s profit sharing plan for 2015 paid out 21.4% of earnings and going forward will continue to generate double digit payouts when we hit our financial goals.

If the contracts are ratified, on date-of-signing, the 30,000 employees would share a $100 million lump sum payment, approximately $200.00 per year of service per employee.

Following United’s outsourcing of approximately 900 IAM-represented agents in 2013-2014, the parties agreed on certain outsourcing restrictions depending on the type of work and location. United also agreed to increase its contribution to the IAM National Pension Fund (covering pre-merger United).

Ratification votes on the tentative agreements are scheduled for April 15.



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