Union: United Outsources Too Much Work (by nearly a half-billion dollars)

[Omaha Steve]

http://www.forbes.com/feeds/ap/2008/03/25/ap4813528.html

Associated Press 03.25.08, 5:39 PM ET

CHICAGO -

A mechanics union said Tuesday that United Airlines has exceeded the amount of money it is allowed to spend outsourcing aircraft maintenance work by nearly a half-billion dollars.

But the Chicago-based airline disputed the conclusions in an audit for the Aircraft Mechanics Fraternal Association (AMFA), saying its spending on outsourced work is within the limits of its contract with the union.

According to AMFA, the audit revealed that United in 2006 spent $280 million more on outsourced work than allowed under a union contract after exceeding the maximum amount allowed by $200 million the year before.

"UAL (nasdaq: UAUA - news - people )'s continued insistence on ignoring their excessive outsourcing damages the already strained relationship with UAL maintenance employees," AMFA Local 9 President Joseph Prisco said in a statement. In the statement, Prisco, whose union represents more than half of United's mechanics, said that since 2001 the number of "mechanics and related staff" has dropped from 15,000 to 5,600.

United spokeswoman Megan McCarthy said the contract allows United to outsource all heavy maintenance and up to 20 percent of other maintenance. She said a previous audit for the union by another group showed the airline is "well within" the limit allowed by the contract.

FULL story at link.