United reaches agreement with flight attendants

Washington / Bloomberg

United Continental Holdings Inc. reached a tentative deal to bring its 25,000 flight attendants under a single labour contract for the first time since the merger that created the airline almost six years ago.
A unified labour contract with flight attendants would address one of the most glaring failures since the 2010 merger of United’s parent company with Continental Airlines. Attendants from the two airlines had separate contracts and couldn’t even work on the same aircraft, which created problems in scheduling flight crews.
The proposed deal marks another step forward for Chief Executive Officer Oscar Munoz and his efforts to smooth relations with United’s workforce. The agreement with the negotiating committee of the Association of Flight Attendants is subject to approval by its leadership, the union said in a statement. The pact also would go to a vote of the union’s full membership. Terms weren’t disclosed. “It’s been a long journey and I’m grateful to our outstanding flight attendants,” Munoz said in a release.

Opposing Camps
Since the merger, United’s attendants have remained in a United camp, a Continental camp and a third unit for Continental Micronesia workers. Management has clashed frequently with them and other employee groups since the merger, and Munoz traveled around United’s network since taking office in September to win back their loyalty.
United’s pilots signed a two-year contract extension in January, and the carrier’s dispatchers approved a labor deal in March. The airline has yet to come to terms with its roughly 8,900 mechanics.
Munoz “immediately changed the tone” between the airline and its employees, Sara Nelson, president of the flight attendants’ union, said in November.
Munoz must juggle higher labor costs approved under the new contracts with his plan to improve United’s profit margin. He recently announced a plan to find $3.1 billion in savings and extra revenue by 2018.
Because United has struggled with labor relations since the merger, the advantages of reaching an accord with flight attendants will help offset any additional costs, said Joseph DeNardi, an analyst at Stifel Financial Corp.