Mechanics Dispatch — November 28, 2018

Update Regarding Industry Reset

Dear Brothers and Sisters,

Business agents from all across the United Airlines System and Airline Division Representatives met at IBT headquarters in Washington D.C. today, where they listened to a presentation from Economist Dan Akins that addressed the Industry Reset (LOA 29). The purpose of this meeting was to determine the state of the industry regarding pay and the possibilities of pursuing a pay adjustment for United workers represented by the IBT.

Although there is slight disagreement on the exact values calculated to create the percentage average described in LOA 29, even with the most aggressive numbers the United Collective Bargaining Agreement (CBA) still puts us outside the two percent threshold that requires an adjustment when compared to the average for Delta Air Lines and American Airlines. A large reason for this is the failure to finalize an agreement at American Airlines, as well as a United CBA that remains superior to both companies. Although Delta Air Lines shows a slight wage increase over United mechanics, the LOA states that the two carriers will create an average value that must be at least 2 percent over United. With American Airlines making slightly less, the average puts Delta and American Airlines slightly below United (please note that the calculations used were prior to the upcoming United pay increase scheduled in December of this year). 

To ensure that the numbers the company provided are correct, we have asked Mr. Akins and an outside actuary, Peter Hardcastle, to continue the review that had already begun under the LOA. These numbers need to be verifiable to both parties for the next measurement period with the hope being that American Airlines will reach a deal by that time. After this review is complete, a report will be shared with the membership in the same fashion as the 2016 dispatch that laid out the industry average.

In Solidarity,

Vinny Graziano