HOUSTON, TX – ExpressJet Holdings, Inc. announced today that it reached tentative agreements with all four of its labor unions representing the pilots and instructors, mechanics, flight attendants and dispatchers. Voting is scheduled to be completed by November 1. If ratified, ExpressJet expects to realize $20 million in labor cost savings needed under the amended capacity purchase agreement with Continental Airlines, Inc. that became effective on July 1, 2008. The $5 million in remaining labor savings will be provided through wage and benefit reductions, as well as increases in productivity, within the airport services division.
“I appreciate the hard work that each executive council and negotiating committee put into reaching these tentative agreements,” said ExpressJet’s president and CEO, Jim Ream. “If ratified, every employee group at ExpressJet will have participated in concessions better enabling us to weather the current economic downturn and focus on developing strategic objectives and conserving cash.”
If ratified, the agreements will become effective immediately and become amendable in December 2010 for pilots and instructors, August 2009 for mechanics, August 2010 for flight attendants and July 2009 for dispatchers.