UAL Mechanics' Union Rejects Blame

Business Editors/Airline Writers

SAN FRANCISCO--(BUSINESS WIRE)--October 29, 2007--Once again, senior management at United Airlines (UAUA) blames its mechanics for failed UAL initiatives, according to officials of the Aircraft Mechanics Fraternal Association (AMFA).

United Airlines senior executives conducted a conference call with airline industry analysts on October 23. Several of the questions during that call pertained to the airline's announced intention to sell its San Francisco maintenance facility to a third party.

Laura Mandaro, CBS MarketWatch, participated in that call. She reported that UAL’ s Chief Financial Officer Jake Brace said that “‘we’ re not sure we’ re going to be able to overcome issues with the maintenance union regarding a proposed sale.”

In the conference call transcript, Jake Brace said, “We have some issues to work out with labor and it’ s not clear whether we are going to be able to work those issues out.” He goes on to say that “we don’ t think we can invest a lot of capital in it [the maintenance facility] and make it grow.”

AMFA Local 9 President Joseph Prisco disputes Brace’ s attempt to set up the union for blame if the company’ s attempted transaction does not succeed. “The company has never engaged the union regarding any terms of any proposed deal,” he said. “The union has simply been informed of the company’ s intent.” represents AMFA Local 9 represents mechanics and related employees at UAL’ s San Francisco Maintenance Center.

There have been no meetings or discussions of issues that would prevent the sale, spin-off, or joint venture of the maintenance division. In fact, the union embraces the idea of changing the failed management of the airline's Maintenance Division.

“AMFA will not be used as a convenient outlet for blame if management cannot execute its strategy,” Prisco remarked.

In addition, there is a major dispute between the union and the company over the outsourcing of maintenance work. An independent annual audit found earlier this year that the company exceeded its contractual outsourcing limit by 50%, an amount estimated at $196 million for the year 2005.

AMFA Local 9 represents over 3000 mechanics and related workers at United and Alaska Airlines at San Francisco, Los Angeles, Phoenix, and the states of Alaska and Hawaii. Local 9 is AMFA’ s largest local.

AMFA Local 9Joseph Prisco, President, 650-826-1405

State Keywords: CaliforniaIndustry Keywords: Transport; Air; Travel; Transportation; Public Policy/Government; LaborSource: AMFA Local 9