Wage Increase And Retirement Contributions Part Of The Package

The International Association of Machinists and Aerospace Workers (IAM) and Continental Airlines said Tuesday they have reached a 20-month tentative interim agreement for a new contract covering the carrier’s estimated 9,500 flight attendants.

The tentative interim agreement contains a 2.5% base wage increase retroactive to January 1, 2010, with an additional 2.5% increase on September 1, 2011. Additional terms include profit sharing, sick leave enhancements, company contributions to Flight Attendants 401(k) plans and numerous work rule improvements. Additionally, job security was greatly enhanced through a no-furlough clause in effect for the life of the agreement.

“The critical guidance, unwavering support and solidarity of the IAM Flight Attendant membership made this tentative agreement possible,” said Continental Flight Attendant and Local 2339N President Joey Guider. “The IAM Negotiating Committee unanimously recommends membership ratification.”

"The negotiation teams were able to reach a fair agreement that is another positive step forward as we work to combine our companies," said Sam Risoli, vice president of Inflight Service for the combined company.

The new agreement becomes amendable on September 2, 2012. If a union representation election prompted by the merger of Continental and United Airlines is completed prior to the amendable date, negotiations for a transition agreement covering the combined airline’s Flight Attendants would commence. The IAM is expected to hold a ratification vote in the coming weeks.

FMI: www.go142.org, www.continental.com