CHICAGO — United Airlines opens talks this month with unions representing 88 percent of its employees, the first contract bargaining since exiting bankruptcy in 2006, amid a recession and a “canyon of distrust.”
While unions for 42,500 workers seek to recoup at least some of the pay and benefits lost in the carrier’s three-year reorganization, United will try to control costs amid dwindling traffic and five straight quarterly losses.
“United, and for that matter, the industry, just doesn’t have the financial strength to meet the demands being laid out there,” said Jerry Glass, president of consulting firm F&H Solutions Group in Washington. The airline “will try to provide some increases for the employees but also make sure they don’t get into a situation where they do more than they can afford.”
Looming over the talks are memories of union concessions, 24,000 job cuts in bankruptcy and 7,000 more since July, and an equity stake for employees that has lost 86 percent of its value since the third-largest U.S. airline left court protection.
“It has been nearly a decade since our members had an opportunity to propose changes to their collective bargaining agreements,” said Rich Delaney, president of a Machinists local for 16,000 employees, including ramp workers. “The challenge we face in these negotiations is bridging a canyon of distrust.”
Discussions opened Tuesday with the International Association of Machinists and Aerospace Workers. United began negotiations on Monday with the Association of Flight Attendants-CWA. Bargaining starts today with the Air Line Pilots Association; next Tuesday with the Teamsters, representing mechanics; and April 10 and April 15 with two smaller unions.
American Airlines also is in talks with unions representing all its major labor groups. Pilots there are discussing how they would strike as they slog through bargaining that dates to 2006.
