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United Airlines - air line pilots.

United Airlines and the Air Line Pilots Association reached agreement on a 42-month contract, covering some 7,500 pilots nationwide. Renegotiation of the pilots' prior contract, which expired in April 1988, was delayed by a failed buyout of the carrier by the Air Line Pilots and two other unions representing United employees-the Machinists and the Flight Attendants. (The Machinists and the Flight Attendants have been working without contracts since November 1989 and November 1987, respectively. See Monthly Labor Review, January 1991, p. 29.)

The new contract amends the interim agreement reached in November 1989, which provided lump-sum payments to all pilots and wage adjustments for B-scale (less senior) pilots. Under the new agreement, the highest hourly rate (for a 12-year captain flying a Boeing 747-400) would increase from $189.18 to $222.27 in October 1993, while the lowest hourly rate (for a first-year second officer flying on a DC-8) would increase from $25.75 to $33 in October 1993.

Several changes were made in the health care area, including the introduction or enhancement of several cost-containment measures. The annual medical plan deductible was increased from $150 to $250 for single coverage and from $300 to $500 for family coverage. The annual maximum "out-of-pocket" expense was increased from $1,000 a person to $1,500. New requirements were added for mandatory second surgical opinions and precertification for nonemergency in-hospital care. Dental benefits were increased, and a $200 "incentive" was established for individuals using preferred provider organizations.

Other terms include an increase in the pension multiplier, from 1.39 percent of earnings in all years of participation to 1.41 percent, retroactive to April 1988; the establishment of a taxdeferred 401(k) savings plan; and improvements in life insurance coverage.
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Publication:Monthly Labor Review
Date:Jul 1, 1991
Words:289
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