Shareholders Approve United/Continental Merger
Shareholders at United and Continental Airlines today voted to approve the $3 billion merger proposal that will create the world’s largest airline. The vote comes less than five weeks after federal regulators gave the merger antitrust approval.
When the integration process has been substantially advanced for each classification, employee representatives can apply to the National Mediation Board (NMB) for separate “single carrier” rulings for each classification. Following each single carrier ruling, the NMB will schedule union representation elections for that classification. The schedule of NMB rulings and elections will depend on many factors, including the rate of operational integration for each classification.
“Now that the executives and shareholders have taken care of themselves it is time to ensure the future of IAM members,” said District 141 President Rich Delaney. “Our efforts will focus on reaching the long overdue, progressive contracts our members deserve.”
“The IAM will continue to meet with lawmakers and with representatives of the merged entity to ensure that employee concerns are acknowledged and addressed as the process moves forward,” said IAM District 142 President Tom Higginbotham. “It was employee sacrifices that provided the means for this merger to be consummated, and that fact must not be dismissed or overlooked.”
“This merger is far from being completed,” said General Vice President Robert Roach, Jr. “The task of integrating flight operations, reservations, ticketing, airport operations and obtaining FAA single operating certificates is just beginning.”
DOJ approval, coupled with swapping Newark slots with Southwest, “does not satisfy IAM concerns,” says GVP Roach
DOJ Approves Continental-United Merger
The Department of Justice (DOJ) today cleared the
United-Continental merger of any anti-trust issues, giving the
merger regulatory approval.
"It is clear by the simultaneous announcements of leasing slots
in Newark to Southwest Airlines and the DOJ clearing this
transaction that United/Continental was attempting to satisfy
the IAM's concerns expressed at our meeting with the DOJ
regarding the loss of jobs as a result of this merger," said IAM
General Vice President Robert Roach, Jr. "However this does not
satisfy the IAM's concerns about the potential loss of jobs."
"The IAM has raised our concerns before Congress, various
government agencies and at the bargaining table," said Roach.
"We will continue meeting with Congress, Governors, State
Legislators and any other party to protect the interests of all
the employees that could be affected by this transaction."
The merger must still be approved by each carrier's
shareholders. The airlines expect the transaction to close by
October 1, 2010.
Shareholder Blessing Likely
United and Continental have scheduled shareholder votes regarding the proposed merger for September 17th. Both airlines will vote separately but on the same day so that neither vote influences the other. All signs point to the acceptance of the merger by shareholders.
Nonetheless, the IAM continues to try to make our case on behalf of the employees. On August 18th GVP Roach, District 142 President Tom Higginbotham, myself, and members of GVP Roach’s staff met with Assistant Attorney General Christine Varney and staff members of the Department of Justice Anti-trust Division to impress on them the concerns we have of potential impact to employees of both airlines after a merger.
This was the most recent of several
meetings IAM representatives have held with Congressional and
Senatorial Committees charged with overseeing this merger. In
addition, we have met with the Pension Benefit Guarantee
Corporation previously to talk about our issues of job security
and pension protection.
It is interesting to note that in every meeting I have attended
regarding the merger, we are told the IAM is the only union that
has addressed the issues with them.
“Our concerns are only over how our Members, and our future Members, will be treated,” says PDGC Delaney.
‘Neither support nor oppose’
The IAM has told both United and Continental, in addition to the above named governmental groups, that we neither support nor oppose the planned business transaction of the merger. Our concerns are only over how our Members, and our future Members, will be treated. Members that have received proxy ballots are free to vote their shares in the way they personally feel about the merger.
On August 24th the IAM petitioned the National Mediation Board to conduct a representation election for the Continental Airlines Ground Instructors. The Members of this group of Continental employees, that perform similar work to United’s Fleet Technical Instructors and Emergency Procedure Instructors, have requested IAM representation, regardless of whether or not the merger is successful.
District 141 Organizing is actively talking to several different groups at Continental Airlines that have contacted us for information, and we expect other elections to be held before the integration of the two airlines is complete.