United Airlines has reached an agreement with the Association of Flight Attendants (AFA) to avert the involuntary layoff of nearly 700 flight attendants, while providing improved options for voluntary layoffs.
The new agreement provides what is described as an "enhanced crossover agreement" to flight attendants employed under a union contract with premerger Continental Airlines.
Flight attendants at Chicago-based United Continental Holdings Inc. (NYSE: UAL) continue to work under two union contracts — one contract for premerger United Airlines and another for premerger Continental Airlines. United and Continental merged in 2010 to form the new United Airlines, the world's second-largest airline. But United has yet to ink a single contract for its merged group of unionized flight attendants.
Details of Monday's agreement that averted involuntary furloughs were not disclosed. Nor was there any indication how many voluntary layoffs the airline might still seek.
But the new agreement, among other things, apparently takes into account seniority protections and other benefits for premerger Continental flight attendants.
Noted Marcus Valentino, AFA president at premerger Continental: "This new agreement enhances the original bridge agreement with seniority protections and benefits that would otherwise have not been possible without our mutual effort," referring to fellow AFA flight attendants who work under a premerger United contract.
Added Greg Davidowitch, AFA president at premerger United: "We look forward to continuing to move forward together as we remain focused on a single contract that reflects our collective success."
A spokeswoman for United said, "We are pleased we came to an agreement that will benefit our flight attendants."