Continental, United pilots and management butt heads
Negotiations between the pilots of United and Continental Airlines and the airlines’ leadership have stalled as the pilots accuse management of being inflexible.
The pilots, who are represented by the Air Line Pilots Association International, say they have hit a wall in negotiating a transition agreement with the management of Chicago-based United and Houston-based Continental Airlines (NYSE: CAL).
The two carriers announced plans to merge on May 3. The deal is slated to close in the fourth quarter.
“It is unbelievable that contract talks have stalled so early in the process and for such a basic item as a transition agreement,” said Capt. Jay Pierce, chairman of the Continental pilots unit of ALPA. “We are stalled because of management’s unwillingness to compromise on matters that have little financial impact.”
“We have heard the recent statements by Jeff Smisek, proclaiming the virtues of the upcoming merger, touting the benefits coming to labor because of the expected synergies and promising to work with labor in good faith to complete our contracts,” Pierce continued, in a written statement. “However, if this is an indication of management’s approach, I have serious doubts about how long it will be before any of the touted synergies can be achieved.”