United Airlines 2010 Annual Report Download - page 16

United has been in negotiations for amended collective bargaining agreements with all of its unions since
2009. Consistent with commitments contained in its current labor contracts, United filed for mediation assistance
in conjunction with four of its six unions: ALPA, AFA, IAM and PAFCA. While the labor contract with the
Teamsters also contemplates filing for mediation, the parties agreed to continue in direct negotiations. The
current contract with the IFPTE does not stipulate filing for mediation.
In March 2010, Continental reached a tentative agreement on a new four-year labor contract with the union
that represents its dispatchers, which was ratified in April 2010. In September 2010, Continental reached a
tentative agreement on a new labor contract with the union that represents its aircraft maintenance technicians
and related employees, which was ratified in November 2010. Continental negotiated a collective bargaining
agreement with the Teamsters covering its fleet service employees in November 2010 which was ratified in
December 2010. In January 2011, Continental reached a tentative agreement on a new labor contract with the
union that represents its flight attendants. The agreement is scheduled for a ratification vote, the results of which
are expected to be announced on or around February 26, 2011.
After the Company’s May 2010 merger announcement, ALPA opted to suspend negotiations at both United
and Continental to focus on joint negotiations for a new collective bargaining agreement that would apply to the
combined company. In July 2010, United and Continental reached agreement with ALPA on a Transition and
Process Agreement that provides a framework for conducting pilot operations for the two employee groups until
the parties reach agreement on a joint collective bargaining agreement and the carriers obtain a single operating
certificate. In August 2010, United and Continental began joint negotiations with ALPA and those negotiations
are presently ongoing. In December 2010, ALPA and the Company jointly applied to the NMB for mediation
assistance for pilots and flight instructors.
In January 2011, the IAM filed an application seeking single-carrier findings by the NMB for purposes of
union representation covering fleet service employees at Continental and ramp service employees at United. Also
in January 2011, the AFA announced that it had filed a similar request with the NMB for purposes of union
representation for United and Continental flight attendants. The Company anticipates that other applications will
be filed by various unions covering smaller groups of employees. If the NMB determines that United and
Continental are considered a single carrier, the relevant employees may vote with respect to union
representation. Until elections occur, the incumbent unions will continue to represent those employee groups who
are currently represented.
The outcome of these labor negotiations may materially impact the Company’s future financial results.
However, the Company is unable at this time to assess the timing or magnitude of such impact, if any.
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