Hoffa Grandstands on Airline Outsourcing

Business Wire, March 4, 2008

SAN FRANCISCO -- Teamster President James Hoffa is staging a press appearance with San Francisco Mayor Gavin Newsom at City Hall on March 5 to allegedly talk about airline maintenance outsourcing.

Why is San Francisco Mayor Gavin Newsom being duped into standing with a union official who represents few aircraft mechanics at SFO? Why now? Obviously he is not aware of the real facts at UAL.

The Aircraft Mechanics Fraternal Association (AMFA) Local 9 President Joseph Prisco says, "The Teamsters are masters of hype. The press conference is nothing more than a grandstanding news event to falsely present to the public that the Teamsters are fighting for mechanics at United Airlines and other carriers. The 'news event' takes place now because of a raid by Teamsters at United Airlines (NASDAQ: UAUA) between the present union AMFA and the Teamsters. AMFA represents most of the unionized mechanics at SFO."

The Teamsters are suddenly talking tough on airline maintenance outsourcing but they don't "walk the talk" at their represented airlines. Take for example, the work performed by Teamster maintenance workers at Continental Airlines (NYSE: CAL), a group they have represented for over 10 years. According to a 2006 Bureau of Transportation Statistics report, Continental Airlines outsources over 48% of its maintenance. Their contract contains no outsourcing limits, compared with the contractual limit at UAL of 20%.

"It's important to realize that the Teamsters' contract at Continental allows work to be done overseas in locations such as Brazil, Spain, Hong Kong and elsewhere. Making an issue of UAL sending a few planes to China and Korea in exchange for engine overhauls and other work sent to the U.S. by those same countries to be worked by AMFA mechanics at San Francisco is the height of hypocrisy and ignorance," Prisco added.

AMFA at United Airlines, in contrast, negotiated an independent annual audit during bankruptcy in 2005 that measures compliance with a contractual outsourcing limit of 20%. The audit revealed that United Airlines exceeded the outsourcing limit by $196 million in 2005 and $280 million in 2006. "The Teamsters have done nothing at the carriers they already represent," Prisco said.

AMFA's grievance on UAL's excessive outsourcing is currently in arbitration to return this work to its members.

Prisco points out, "The Teamsters' attempt to talk tough on airline maintenance outsourcing at United Airlines would mean more if their actions at Continental squared with their hollow and meaningless words. They don't. Continental Mechanics ask why the Teamsters protest at UAL when the same union allowed overseas outsourcing for years at Continental yet never protested at Continental--even once!"

Finally, with regard to the potential sale of United's San Francisco maintenance base, Prisco observed, "We covered this issue many times, and the Teamsters don't get it. There is no threat to sell without the union's permission. UAL has acknowledged that the union has a veto over any sale." Prisco concluded, "AMFA has stated many times, if any transfer of control or proposed sale is not good for the mechanics and other UAL employees then our response is simple: we just say no."

The Aircraft Mechanics Fraternal Association represents Mechanics and Related staff at Alaska Airlines, American Trans Air, Horizon Airlines, Mesaba Airlines, Northwest Airlines, Southwest Airlines, and United Airlines. AMFA Local 9, based in San Francisco, is AMFA's largest Local. AMFA commits to the traveling public to ensure the safety of the air transport industry through ceaseless vigilance.