SFGate: Unions talk tough on United merger/One leader says workers 'have put on the war paint'

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Saturday, February 23, 2008 (SF Chronicle)
Unions talk tough on United merger/One leader says workers 'have put on the=
 war paint'
Dave Carpenter, Associated Press


   (02-23) 04:00 PST Chicago --
   United Airlines' unions are stepping up their hard-line talk about a
possible merger as the carrier stands poised to participate in industry
consolidation, warning that management will have to pay a steep price to
win their support.
   While the militant stance won't necessarily thwart United's hopes of a
deal, it foreshadows the likelihood of tough, costly labor negotiations
for a company whose employees are as dissatisfied as any airline's
workers.
   UAL Corp.'s United continues to hold talks with Continental Airlines Inc.
about a possible combination, a person familiar with the negotiations said
Friday. The specifics remain closely held and both are still awaiting the
outcome of negotiations between Delta Air Lines Inc. and Northwest
Airlines Corp., according to the source, who was not authorized by the
companies to talk about the deal.
   United employees are upset about the tens of millions of dollars reaped =
by
the company's executives since the carrier emerged two years ago this
month from a bankruptcy restructuring in which they had to swallow
substantial pay cuts and other concessions.
   The company last month reported its first yearly profit since 2000 - $403
million - and had enough cash to make a $250 million distribution to
shareholders. But it has refused to reopen labor contracts, which don't
expire until the end of 2009.
   The latest evidence of anger came this week when the mechanics' union
summed up the stance of the United unions' coalition by declaring that
"United Airlines will not merge with another carrier unless we ... say it
will merge."
   A leader of the Aircraft Mechanics Fraternal Association said the unions
are "getting ready for a fight" over a United merger proposal, which would
give them new leverage on pay and work conditions otherwise locked
contractually through 2009.
   "All the unions at United have put on the war paint - pilots, flight
attendants, mechanics, dispatchers, engineers," said Joseph Prisco,
president of Local 9 of the Aircraft Mechanics Fraternal Association,
whose unit represents more than half of United mechanics.
   Meanwhile, industry observers say a Delta-Northwest merger could be
scuttled by union activity of another kind: pilots unions at the two
airlines cannot agree how seniority for the 12,000 pilots would work under
a combined carrier.
   A person close to the talks said earlier this week that a small group of
Northwest pilot negotiators want thousands of young Delta pilots to go to
the bottom of the combined seniority list as part of agreeing to a deal.
The person said that was a major hang-up.
   As of Friday, there was no word on any movement on a pilot seniority dea=
l.
   American Airlines is also talking with its unions about a potential
merger.
   American spokesman Andy Backover said executives met with labor union
leaders this week, the latest in a series of meetings stretching back more
than a year on topics related to airline consolidation.
   The meetings have been subject to a confidentiality agreement, preventing
all parties from revealing details of the discussions, Backover told the
Fort Worth Star-Telegram. -------------------------------------------------=
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Copyright 2008 SF Chronicle

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