IAM News

Emergency Relief Motion Buys Time at United

Mon. August 22, 2005

January 10, 2005 - On Jan. 6, 2004, U.S. Bankruptcy Court Judge Eugene R. Wedoff approved a United Airlines 1113(e) emergency giving United Airlines temporary relief from pay rates established in the current IAM –UAL contracts covering Ramp Service, Public Contract, Security Guards and Food Service employees. The judge’s decision affects IAM members of District 141 only.

As part of the 1113(e) motion for temporary relief, United agreed to suspend activity on a separate 1113(c) motion calling for the bankruptcy court to reject collective bargaining agreements and terminate pensions for members of District 141.

The 1113(e) motion was in response to an IAM request for additional time to preserve IAM members’ pension plans.

“The IAM regrets the additional sacrifice this ruling means for District 141 members at United Airlines,” said District 141 President Randy Canale. “However, we intend to take full advantage of the time the order provides to achieve agreements with United that preserve our members’ pension plans and contracts.”

The temporary relief motion calls for an 11.5 percent wage reduction and a 30 percent reduction in the amount of pay employees would normally receive for sick days. The changes will commence on Jan. 6, 2005 and run through April 11, 2005.