United Labor Woes Force Thousands Of Cancellations

<B>United Labor Woes Force Thousands Of Cancellations</B>

By David Jonas

Angered by the lack of progress in contract negotiations, United Airlines pilots for several months have been refusing to work overtime, prompting crew shortages that have forced the world's largest carrier to cancel thousands of flights. The proposed merger between United and US Airways hasn't helped matters, as United pilots remain skeptical about integration of seniority lists between the two carriers.

"The key for us is to get a pilot contract in place," said United president Rono Dutta earlier this month during a phone interview with reporters. "Crew cancellations in the second quarter cost us $50 million." Dutta said controllable cancellations--those stemming from crew and maintenance problems--accounted for 60 percent of all flight cancellations in the second quarter and numbered near 2,800 in June alone. Looking ahead, controllable cancellations for August and September are planned to total about 1,500 and 2,000 respectively. Dutta added that the majority of capacity reductions resulting in part from crew inadequacies would be focused mostly in the domestic market.

North of the border, Air Canada and the Air Canada Pilots Association representing the carrier's 2,200 pilots both have accepted an offer by the Labor Ministry to negotiate with a specially appointed mediator, staving off a potential strike. Contract talks have been continuing off and on since February and reached a crucial stage last month when the union overwhelmingly voted to strike. However, under Canadian law, no labor action can occur without 72-hour notification and both sides have agreed to postpone any lock-out or strike during negotiations with the mediator.

The Air Canada negotiating team said acceptance of the mediation offer is "an important step in the process of reaching a settlement in the shortest possible timeframe in order to end the prolonged uncertainty for our customers."

In related news, Air Canada earlier this month completed the acquisition of Canadian Airlines, which now is an indirect wholly owned subsidiary. Immediately after the acquisition, Air Canada filed for common employer status with the Canadian Industrial Relations board "to facilitate the resolution of outstanding labor issues involving unions at both airlines."

Meanwhile, the union representing pilots at Trans States Airlines easily rejected a tentative contract agreement reached hours before a Memorial Day weekend strike deadline. The parties have agreed to return to the negotiating table and have asked for assistance from the National Mediation Board. Trans States serves as a regional feeder for TWA and Delta.

Continental chief Gordon Bethune said the labor environment at the carrier is extremely positive, with all unions now under contract. "We don't even have a contract up for review before 2002," he said. The union representing dispatchers for Continental Express earlier this month ratified a four-year labor contract while its flight attendants ratified a similar agreement last month that went into effect July 1.