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United Airline accord.

Some 14,000 flight attendants at United Airlines, represented by the Association of Flight Attendants, ratified a 5-year collective bargaining agreement that provides for decreases in wages and benefits, and changes in work rules benefiting the carrier. The contract becomes effective with the acquisition of the UAL Corp., the parent company of United Airlines, under an employee stock ownership plan. (See Monthly Labor Review, June 1990, p. 69.) The prior contract had expired in the fall of 1987.

Terms of the agreement reportedly include an immediate 4-percent cut in pay for top-scale flight attendants ("A-scale"), followed by 4-percent annual increases starting in the second year and potential additional wage adjustments in the final two years of the contract, and a smaller cut in pay for flight attendants with lower salaries ("B-scale"); health care cost containment measures, including precertification for hospital visits, a mandatory second opinion for surgical procedures, and a network of preferred health care providers; replacement of the current weight requirements by rules that tie weight to performance, that is, makes it a factor only in "extreme cases that affect performance"; elimination of premium pay in the calculation of sick leave or vacation benefits, as well as other changes in the calculation of fringe benefits to produce labor cost savings; the dropping of three holidays; and freezing of the current company sponsored savings plan, and concurrent establishment of a new tax-deferred savings plan with company matching an equivalent of 75 percent of the employee's investment. In addition, the Association of Flight Attendants agreed not to strike or ask for a release from mediation (a preparatory step to a job action under the Railway Labor Act, the legislation that regulates industrial relations in the airline industry) for a subsequent agreement, up to 6 years after the employee buyout.
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Title Annotation:Developments in industrial relations
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Jul 1, 1990
Words:298
Previous Article:Health care bargaining.
Next Article:Grocery accords.
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