Conditional labor contracts offered to employees of bankrupt American Airlines by its would-be merger partner, US Airways, provide for only marginal improvements over offers they have received through the bankruptcy process, according to US Airways chairman and CEO Doug Parker.
UAL Corp.'s United Airlines and Continental Airlines expect their proposed merger to close by October 1, now that companies have cleared the last major hurdle in their bid to create the world's largest airline. On Friday shareholders from both companies approved the transaction by a wide margin, as more than 98 percent of the votes cast by each group went in favor of the merger.
In the late 1970s, Continental Airlines president Frank Lorenzo used a court of law to confront his pilots with an existing, although seldom used, negotiating technique, abrogating their contract when he was unable to secure an agreement through traditional collective bargaining. He quickly replaced his then striking workers with a non-union workforce willing to accept his management style and pay scale.