United Airlines launches non-union ground operations subsidiary United Ground Express

United Airlines launches non-union ground operations subsidiary United Ground Express
http://www.bizjournals.com/chicago/news/2015/08/10/united-airlines-launc...
Aug 10, 2015, 12:59pm CDT

United Airlines (NYSE: UAL) said today it is launching "United Ground Express," an airport ground handling business that will be a separate, wholly-owned subsidiary of parent United Airlines.
The new subsidiary will provide customer service, station operations and ramp and cargo service at select second- and third-tier airports throughout United's domestic route system. The airline said the new subsidiary will further enable United "to provide its customers with a travel experience that's closely aligned with its mainline service."
United Ground Express won't be a presence at any of Chicago-based United's hubs, including Chicago.

One thing that apparently isn't in the cards at UGE, at least at this moment, are labor unions, who are the backbone of United's mainline operations. At times, unions have been a source of friction— and a costly one — with United management
But a United spokesman today said the various unions with whom the airline has contracts are aware of United Ground Express and its game plan, but he declined to say more on the matter. "You'll have to ask IAM," said the spokesman, referring to the International Association of Machinists and Aerospace Workers, one of several large unions with whom United has contracts. There also is no mention of unions on the new website for United Ground Express that has just launched.

United Ground Express employees will have separate work rules and pay scales from those of United mainline, unionized employees. They also will have a 401K retirement savings plans rather than pensions. But a United spokesman said United Ground Express employees will have the same or similar travel benefits available to the airline's mainline employees.
The number of employees United Ground Express expects to hire within the next 6 to 12 months is being kept under wraps, as is the number of airports where UGE will be in place within the next year.
A United spokesman said UGE will be phased in over time as contracts with existing operations providers, most notably Envoy, expire in the months to come at airports around the country.
But United did confirm that UGE will be present in Kalamazoo, Mich., when United launches new service to that town, home to cereal behemoth Kellogg, from Chicago's O'Hare International Airport on Dec. 9.