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ExpressJet Still Hopes for Deal With Attendants' Union

Posted on: Wednesday, 27 July 2005, 00:00 CDT

Jul. 27--ExpressJet Airlines' 1,200 flight attendants have rejected a tentative four-year agreement with the carrier, which flies under the name Continental Express.

The results are a setback for leaders of the flight attendants' union, which also represents flight attendants for Houston-based Continental Airlines. The 7,000-plus flight attendants for Continental rejected the proposed new contract in late March.

Officials of Houston-based ExpressJet said in a filing Tuesday that the company still is hopeful it can reach agreement with its flight attendants, who make up 17 percent of the carrier's employees.

Calyon Securities analyst Ray Neidl said Tuesday that ExpressJet needs to keep costs down and will probably try to rework the contract.

"It is a contract that is important, and at the same time, the unit costs have to be kept low if ExpressJet is going to remain competitive with other regionals," Neidl said.

The ExpressJet deal that was rejected included raises of up to 35 percent over the life of the contract, as well as an improved 401(k) plan and more job security, union officials said earlier this month.

At the time it was announced, the union officials touted the deal as the best in the industry. Now they will have to weigh the meaning of the no vote by flight attendants, who also voted to authorize a strike.

"Certainly, in face of the rejection of the tentative agreement, the Negotiations Committee will be guided by those results," stated the new posting signed by union officials.

An exact count of the vote was not available Tuesday but should be later in the week, according to a notice posted by the International Association of Machinists and Aerospace Workers, which represents the workers.

The union said that when it does receive the actual results, the negotiating committee will meet "and determine the best course of action."

ExpressJet said in the filing with the Securities and Exchange Commission that it believed "a mutually acceptable agreement can be reached with Airline's flight attendants, although the ultimate outcome of these negotiations is unknown at this time."

The ExpressJet flight attendants voted over a weeklong period that ended Sunday. But some flight attendants were unhappy with the way the voting was set up by the union, according to a Continental flight attendant who had spoken with a counterpart at ExpressJet. Continental flight attendants also complained about the voting system.

One major complaint is that the flight attendants had to vote in person, instead of being able to vote electronically, as other employee unions did on proposed contracts for Continental in March.

Continental has tallied $418 million in wage and benefit cuts from its other unions and worker groups. The carrier announced in November it was seeking a total of $500 million from employees

Continental now owns about 8.5 percent of ExpressJet, which provides service to some 150 destinations in the U.S., Canada, Mexico and the Caribbean.

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XJT,

Source: Houston Chronicle

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