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News Release
Release #03.CAL
December 4, 2003
Arbitration Board Points Continental to 'Interest Arbitration' Over B-757-300
HOUSTON—An Arbitration Board has decided that Continental Airlines, under the
terms of its pilot contract, must consider the Boeing 757-300 as a new aircraft
type and engage in “interest arbitration” to properly categorize the
aircraft for pay purposes.
Unlike most other major U.S. carriers, Continental (CAL) pay rates are
determined using a three-tier “category” system (i.e., Small, Large and Wide
Body aircraft) instead of the more traditional “differential” system where
rates are determined by aircraft model and type.
The award, handed down by the three-man Board in November, agreed with the
pilots that pay for the B-757-300 aircraft is not addressed in the current
contract.
“We have been fighting to resolve this issue for three years,” said Capt.
Jay Panarello, Chairman of the CAL pilots union’s Master Executive Council, a
unit of the Air Line Pilots Association (ALPA).
The dispute arose soon after CAL announced intentions to order 15 Boeing 757-300
aircraft in late 2000, three years after the current pilot contract was signed.
When the B-757-300 was placed in service, pay for the new fleet was calculated
at the same rate as the B-757-200.
“Our contract clearly outlines that pay rates for aircraft not referenced in
our pay provisions are to be determined by interest arbitration,” said
Panarello.
Nonetheless, Continental claimed that interest arbitration provisions should not
be used in determining pay rates for the B-757-300 aircraft. The three-man
Arbitration Board disagreed, saying that the B-757-300 “… is different from
the 757-200” and “… needs to be categorized.… pursuant of the Interest
Arbitration provisions” in the CAL pilots’ contract.
“We look forward to proceeding with the interest arbitration,” said
Panarello. “We firmly believe that the B-757-300 belongs in the same category
as the B-767-200, which carries fewer passengers.”
Continental Airlines currently operates 41 B-757-200 and four B-757-300
aircraft, with five additional B-757-300s scheduled for delivery in 2004.
The Continental MEC represents the almost 6,000 pilots of Continental and
Continental Express Airlines. Founded in 1931, ALPA is the world’s largest
pilot union representing 66,000 pilots at 42 airlines in the U.S. and Canada.
Visit the ALPA Web site at www.alpa.org.
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ALPA Contact: James H. Moody
281-987-3636