Machinists union wants back in at United Machinists union wants back in at United Airlines

[Omaha Steve]

http://www.chicagobusiness.com/cgi-bin/news.pl?id=33983&seenIt=1

By: John Pletz May 08, 2009
(Crain’s) — The International Assn. of Machinists is trying to win back the mechanics at United Airlines.

The IAM, which was voted out in 2003, says it was approached recently by some mechanics about representing them again. It’s the largest union at United, representing about 17,000 ramp workers, customer-service agents and others.

The move comes as the Chicago-based airline begins negotiations with all six of its unions, and it could force the third change in representation for the mechanics in less than a decade.

IAM’s key selling point is its traditional defined-benefit pension plan; its members are the only United workers who still have such a plan. The company-sponsored pension plans were ended after parent UAL Corp. entered bankruptcy protection, and they were transferred to the Pension Benefit Guarantee Corp., which pays a fraction of the original amount.

United switched its retirement program to a 401(k) plan with a company contribution, lowering its labor costs. But 401(k) plans took a beating during the recent downturn that has left the stock market down by nearly half from its peak in 2007. IAM workers can contribute to United’s 401(k), but instead of a company match, they opted for contributions to the IAM national pension plan.

“Anybody who has looked at a 401(k) plan recently wishes they had a defined-benefit plan,” the union spokesman says.

FULL story at link.