United Airlines concluded a busy year for labor negotiations on Monday when its mechanics ratified a new contract, meaning the Chicago-based carrier reached new agreements with each of its domestic unionized work groups in 2016.
Monday's agreement passed with 51.58 percent of the voting International Brotherhood of Teamsters union members supporting it. The 9,000-plus mechanics and related employees, including more than 1,400 in Houston, had been working under contracts from before United's merger with Houston-based Continental Airlines in 2010. That meant former United and Continental employees could not work side by side.
The pact includes substantial pay increases and a no-furlough policy, said Clacy Griswold, chief negotiator for the Teamsters on this contract. It also introduced attrition protection, meaning United can't contract out work due to a shortage of employees caused by attrition.
This is the first time in the combined company's history that all work groups have labor contracts in place.
During his visit to the Chronicle in October, CEO Oscar Munoz identified employees as his first priority when he took the helm in September 2015. He sought to settle labor contracts.
"The productivity, the efficiency of an engaged workforce doing the right things together as opposed to separately, I think, makes a big difference," he said.
Other contracts
United reached a joint collective bargaining agreement with flight attendants in August. It also reached contract extensions this year covering the airline's pilots, dispatchers, ramp and passenger-service agents, contact center employees, storekeepers, load planners, maintenance and fleet technical instructors, and security officers.
Griswold said Houston mechanics have extra job protection since they work at a maintenance base. They are also protected against being involuntarily transferred outside of Houston.
The new contract also offers a defined-benefit pension plan, which is especially important to pre-merger United workers who had their plan taken away about 10 years ago.
"This contract itself represents vast improvements across the board for all," he said.
Customer service
Bill Bux, a Houston-based employment lawyer with Locke Lord, said there's more likely to be friction and disruptions when organized workers don't have a contract. Munoz's efforts to solve labor discord allows the airline to turn its focus to other things, such as on-time arrivals and customer service.
"Happy workers make good workers," he said. "I think it's a good thing for United."