“IAM members can finally expect to receive their hard-earned retroactive wages with interest,” said IAM District 141 President Rich Delaney “It’s unfortunate it took the threat of a federal lawsuit to get United to honor the contracts it agreed to last fall.”
The agreement mandates that full retroactive payments plus an interest penalty based on the back wages due, will be paid by 4/3/14, with a double penalty if not paid by then. IAM members ratified new joint contracts at United Airlines last October, which brought IAM-represented workers at United, Continental and Continental Micronesia under the same terms of employment. The newly ratified agreements became effective on November 1, 2013 and called for immediate wage hikes from seven to 29 percent, depending on pre-merger carrier and classification.
United Airlines, however, citing “technological issues” with its payroll systems, did not begin to compensate IAM-represented workers at the agreed upon wage rates until mid-January. In its most recent update to the IAM before the agreement, United stated that it could not say when IAM-represented employees would receive their retroactive wages.
“I’d like to thank all IAM members for their patience and understanding during this frustrating time,” continued Delaney. “You have every right to be angry because you held up your end of the bargain.”