Unions, shareholders can make bumpy road for United Continental Holding
The proposed United-Continental merger is already facing a lawsuit questioning the price at which it will occur, and airline industry analysts are citing organizational culture, service levels and labor agreements as other issues facing the merger. Part of the success of the merger will depend on labor's willingness to cooperate, something that helped facilitate the Northwest-Delta merger, but did not work out as well for US Airways and America West. Others cite United's bad relations with its unions, and Continentals good relationship as potential issues facing the merger. Pilots at both airlines are represented by the Air Line Pilots Association. A spokesman for the Continental pilot's union said that pilots for both airlines have good relationships, and that they want the merger to be a long-term success, not a short-term profit tactic for bankers. The International Association of Machinists and Aerospace Workers, which represents about 26,000 United and Continental workers said that they were concerned about the merger's potential impact on benefits, pensions and job security. The merger is expected to close by the end of the year.
See "Unions, shareholders can make bumpy road for United Continental Holding", Joseph R. Perone, The Star-Ledger, May 3, 2010