Informational Picket Stresses Overdue Contract
The Continental Airlines pilots
conducted informational picketing Thursday at the Hyatt Regency
hotel in downtown Houston, site of the Continental Airlines annual
stockholders meeting. Capt. Jay Pierce, chairman of the ALPA
chapter for the Continental pilots, led the 260 pilots in
attendance into the stockholder meeting, where he addressed
management, Continental’s Board of Directors and
stockholders.
In Capt. Pierce’s statement, he said, in part,
“Continental Airlines has gained a reputation as a leader in
the industry and a leader in its treatment of employees. I come
before you with one simple demand: show us that you are willing to
be a leader when it comes to dealing with your pilots. One year
ago, we made it clear that we expected you to develop a business
plan that fully recognized and addressed the concessions we have
endured, the purchasing power we have lost and the uncertainties we
have faced.
“Five years ago when you came to us insisting that our
very survival as an airline depended on concessions, we completed a
deal in a matter of months. From that point on, we have suffered
through massive concessions and givebacks of over $200M per year,
plus all of the problems that a rushed contract has brought. Just
as we focused then on the efforts needed to help save Continental,
it is now time for you to focus the same energy and resources
toward negotiating a return on our investment.
“The deadline to reach an on-time contract came and went
with the passing of our amendable date 161 days ago. Even though
you have been willing to meet with us regularly, our proposed
changes so far have been met with numerous and time-consuming
counter-proposals. This has resulted in tentative agreements for
only nine of the more than 30 sections of our contract and has
delayed discussion of the economic sections. Ladies and gentlemen,
we are here to state: the loan is not just due, but past due
– by 161 days and counting.”
Capt. Pierce also emphasized the core areas of the contract that
must be addressed in the pilots’ contract: compensation,
retirement, work rules and scheduling, and job security.
Continental Pilots agreed to annual concessions of over $200M in
their last contract. They say those concessions are a
“loan” that is due. The contract became amendable on
Dec. 31, 2008. At the date of the stockholders meeting, June 10,
the pilots’ contract was 161 days past the amendable
date.
The Continental pilots and Continental management entered early
negotiations in July 2007. Legal notice to enter formal
negotiations under Section 6 of the Railway Labor Act was given by
the union to Continental Airlines on April 7, 2008. The parties
have completed tentative agreements on nine sections of the
contract, each of which was relatively minor, but was preceded by
multiple counter-proposals from the Company. Dozens more sections
are still to be negotiated, including prime issues such as pay,
work rules, benefits and retirement.