Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 12,580.70 +125.86 1.01%
S&P 500 1,332.42 +14.60 1.11%
Nasdaq 2,870.99 +33.46 1.18%
Ticker Volume Price Price Delta
STOXX 50 2,160.31 +12.39 0.58%
FTSE 100 5,391.14 +34.80 0.65%
DAX 6,396.84 +73.65 1.16%
Ticker Volume Price Price Delta
Nikkei 8,657.08 +63.93 0.74%
TOPIX 727.03 +5.92 0.82%
Hang Seng 19,055.50 +254.47 1.35%
Gold 1,558.60 -0.80%
EUR-USD 1.2503 -0.3034%
Nasdaq 2,870.99 +1.18%
DJIA 12,580.70 +1.01%
S&P 500 1,332.42 +1.11%
FTSE 100 5,391.14 +0.65%
STOXX 50 2,160.31 +0.58%
DAX 6,396.84 +1.16%
Oil (WTI) 90.81 -0.06%
U.S. 10-year 1.745% +0.007
BAC:US 7.44 +4.06%
FB:US 28.84 -9.62%
BREAKING NEWS
RIM Is Said To Hire JPMorgan, RBC to Advise on Options; Sees Posting 1Q Operating Loss

United Seeks Flight Attendant Job Changes to Avoid Furlough

United Continental Holdings Inc. (UAL), the carrier formed when United and Continental airlines merged, is in talks with flight attendant unions to shift workers between the units to avoid furloughs and solve a labor shortage.

The plan would be to move workers from United to Continental, which needs 900 more flight attendants next year as it adds Boeing Co. (BA) 787 Dreamliner jets to its fleet and takes delivery of 737-900s, Sam Risoli, vice president of inflight service at the Chicago-based carrier, said today in a letter to flight attendants.

The United unit will be overstaffed because about 1,800 attendants are scheduled to return to work from a voluntary furlough program, and the Continental Micronesia division also has excess staffing, Risoli said.

United Continental, created in October, has to run the two airlines as separate carriers until the government grants them a single operating certificate. The matter is further complicated because the United group is represented by the Association of Flight Attendants and Continental by the International Association of Machinists, with different work rules and pay scales for each.

“We want to do everything we can to ensure the flight attendants who want to work have the opportunity to do so, and reduce the possibility of involuntary furloughs for United,” said Julie King, a spokeswoman for the company.

‘Fear and Intimidation’

The AFA views the letter as a “fear and intimidation tactic” ahead of voting that begins next week for the combined flight attendant group to choose whether AFA or IAM will represent them going forward, said Sara Nelson, vice president of the AFA.

“The timing of this letter is a political stunt, meant to create fear and confusion,” Nelson said.

If United flight attendants left and took a job at the Continental airline, they would likely be placed at the very bottom of the seniority list, which would give them little control over their schedules and trip preferences, she said. The AFA hasn’t had a chance to talk with members and determine how to respond to management’s request, she said.

The IAM thinks this is a “good idea” and proposed a similar plan to the airline’s management last week when it filed a grievance over short staffing at Continental, said Joseph Tiberi, a spokesman for the union.

"Why would they hire a bunch of flight attendants off the street for Continental when you have all these flight attendants at United, which is part of the same parent company, who have been sitting at home all these months and may want to come back to work," he said. "This would be a temporary solution."

United Continental has about 24,000 flight attendants, including those who are on furlough or voluntary leave. The airline’s total workforce is 86,000 active employees.

United shares slid 39 cents, or 1.5 percent, to $25.49 at 4 p.m. in New York Stock Exchange composite trading. They have gained 7 percent this year.

To contact the reporter on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net.

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net.

Sponsored Links