Rich Delaney, 19 July, 2013:
Negotiations with United Airlines resumed this week. The focus was on looking for ways to address the recent announcement by United of intent to contract out the current work in CVG, GRR, ROC, ALB, MDT, and TUS. The company informed the IAM that they intended to take action to turn all ground handling work over to a vendor – American Eagle – in all six stations, effective October 15th.
We reviewed the financial differences between our members continuing performing the work and also expanding the United operation and replacing the existing vendor or losing the work completely to American Eagle. The cost differences created a large obstacle that had to be overcome. On average, the cost savings to United of removing their own employees and turning over the critical work of these stations to their competitors was about 35%. In some cases, in actual dollar amounts, the difference was greater than $1 million a year. These figures are based the current cost structure of our PCE Agreement and are not speculation of future costs.