United Airlines Contract Negotiations

United Airlines Contract Negotiations

United Contract Negotiations Update

IAM and United management negotiators met this past Friday in Washington DC for 14 hours in an effort to reach agreement on seven IAM contracts covering almost 30,000 United Airlines workers. While United management has finally recognized that to reach any agreement, whether in the current expedited process or traditional “Section Six” negotiations, the issue of job security must be resolved. The parties, however, still remain apart on a mutually acceptable job security construct. 

As we have stated since the onset of this expedited process, IAM-represented United Airlines workers need and deserve job security that prohibits outsourcing and protects our employment and job status (full-time/part-time). While we have made significant progress in the outsourcing and employment protection components of job security, United management has still not offered acceptable protections for full-time and part-time employment and opportunities for part-time employees who seek full-time employment to obtain those positions. 

United management representatives, whether high-ranking officials in negotiations or frontline management personnel have stated to IAM negotiators and IAM-represented United workers across the system that they have no intention of “casualizing” the Ramp and PCE and making those classifications majority-plus part-time work classifications. 

They just refuse to put it in writing. 

Every IAM contract in the airline industry includes protection of full-time employment, which consequently protects part-time employment. Your District 141 Negotiations Committee has proposed language that is reasonable and which exists in other IAM contracts at major airlines. While protecting full-time and part-time employment, our proposals also provide United management the flexibility to grow the carrier, which we all want, and the needed flexibility in case of a reduction in force. 

After Friday’s talks, the gap on the remaining issues has narrowed. But, United management negotiators are still pushing back against what we view as acceptable resolutions to these issues. While there may be a path to an agreement, we are now forced to review our options to exit the expedited process and enter traditional “Section Six” negotiations and possibly request the assistance of the National Mediation Board (NMB) and enter federally mediated negotiations.

We appreciate the patience and strong support of all IAM members at United Airlines. The almost 30,000 IAM members at United Airlines do not deserve to be treated as second-class citizens in the realm of Job Security.

We deserve to know that our jobs and paychecks are secure so that we can care for our families with dignity.

We will advise the membership of next steps later this week.

In Solidarity,

Your Negotiating Committee
Olu Ajetomobi
Joe Bartz
Victor Hernandez
Barb Martin
Andrea’ Myers
Terry Stansbury
Faysal Silwany
Erik Stenberg
Sue Weisner

Michael G Klemm
President and Directing General Chair, 
District 141,
International Association of Machinists & Aerospace Workers

Recording Secretaries: Please print and post on all IAMAW bulletin Boards.

Justice Department Expected to Block JetBlue / Spirit Merger

Justice Department Expected to Block JetBlue / Spirit Merger

DOJ Expected to Block JetBlue / Sprit Merger

IAM141.org

According to two anonymous sources familiar with the matter, the Justice Department plans to file a lawsuit as early as Tuesday to prevent JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines. The lawsuit alleges that the acquisition would remove an essential low-cost carrier, further consolidating the industry and increasing prices, potentially resulting in antitrust concerns. If the DOJ ultimately decides to block the merger, it will be the second antitrust action JetBlue faces. 

As reported by Bloomberg, the Biden administration’s recent efforts to enforce antitrust regulations in the airline industry have led to the likely lawsuit against JetBlue’s proposed acquisition of Spirit Airlines. 

A spokesperson for JetBlue confirmed that the airline is bracing for a lawsuit, which it expects “this week.” Spirit and the Department of Justice did not issue public statements.

According to Bloomberg, a lawsuit from the Department of Justice could foil the merger between the two carriers for over a year. However, if the JetBlue / Spirit merger gets approval from Federal Regulators, it will create the fifth-largest carrier behind American, United, Delta, and Southwest. 

The Justice Department has taken a dim view of the argument from JetBlue CEO Robin Hayes that a merger between his airline and Spirit would create lower prices for air travelers. In public statements, Hayes predicted that a post-merger Spirit would adopt JetBlue boarding policies, which use fewer seats. Hayes explained that removing seating capacity from the market would lower prices since fewer seats for sale would mean faster boarding times and more flights overall. 

The Department of Justice has studied the effect a JetBlue / Spirit merger will likely have on airfares. If the Department moves to block the merger, it will signal that Federal Regulators have come to the opposite conclusion. 

In response to concerns expressed by the Department of Justice, JetBlue has proposed a plan to sell Spirit’s assets in their entirety at Newark Liberty International Airport in New Jersey, New York’s LaGuardia Airport, and Boston Logan International Airport in Massachusetts, and five slots at Fort Lauderdale-Hollywood International Airport in Florida. Jetblue is not offering to divest itself of assets related to its “Northeast Partnership” with American Airlines. That deal has been called a “de facto merger” by the Justice Department. 

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DOJ Expected to Block JetBlue / Spirit Merger

March 6, 2023

According to two anonymous sources familiar with the matter, the Justice Department plans to file a lawsuit as early as Tuesday to prevent JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines. The lawsuit alleges that the acquisition would remove an essential low-cost carrier, further consolidating the industry and increasing prices, potentially resulting in antitrust concerns. If the DOJ ultimately decides to block the merger, it will be the second antitrust action JetBlue faces. 

As reported by Bloomberg, the Biden administration’s recent efforts to enforce antitrust regulations in the airline industry have led to the likely lawsuit against JetBlue’s proposed acquisition of Spirit Airlines. 

A spokesperson for JetBlue confirmed that the airline is bracing for a lawsuit, which it expects “this week.” Spirit and the Department of Justice did not issue public statements.

According to Bloomberg, a lawsuit from the Department of Justice could foil the merger between the two carriers for over a year. However, if the JetBlue / Spirit merger gets approval from Federal Regulators, it will create the fifth-largest carrier behind American, United, Delta, and Southwest. 

The Justice Department has taken a dim view of the argument from JetBlue CEO Robin Hayes that a merger between his airline and Spirit would create lower prices for air travelers. In public statements, Hayes predicted that a post-merger Spirit would adopt JetBlue boarding policies, which use fewer seats. Hayes explained that removing seating capacity from the market would lower prices since fewer seats for sale would mean faster boarding times and more flights overall. 

The Department of Justice has studied the effect a JetBlue / Spirit merger will likely have on airfares. If the Department moves to block the merger, it will signal that Federal Regulators have come to the opposite conclusion. 

In response to concerns expressed by the Department of Justice, JetBlue has proposed a plan to sell Spirit’s assets in their entirety at Newark Liberty International Airport in New Jersey, New York’s LaGuardia Airport, and Boston Logan International Airport in Massachusetts, and five slots at Fort Lauderdale-Hollywood International Airport in Florida. Jetblue is not offering to divest itself of assets related to its “Northeast Partnership” with American Airlines. That deal has been called a “de facto merger” by the Justice Department. 

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Do Airline Contracts Expire?

Do Airline Contracts Expire?

Do Airline Contracts Expire?

IAM141.org

You’ve probably heard of the Railway Labor Act if you work at an airline or are a frequent air traveler. This federal law, enacted in 1926, established a framework for labor-management relations in the railroad and airline industries. One of the Railway Labor Act’s most significant features is how it governs airline labor contracts.

Compared to most labor contracts with an expiration date set in stone, union contracts at airlines never truly expire. Instead, they become amendable after a particular date. This means that even if a union contract has passed its amendable date, it remains in effect until a new agreement is reached. Another way to think of it is to consider a union contract at an airline or railroad as “updatable” after a specified date instead of “expired.”

This unique feature of airline labor contracts results from the Railway Labor Act’s goal of promoting stability and avoiding disruptive labor disputes in industries essential to the national economy. Under the Act, airlines and their unions must engage in bargaining and mediation procedures before any work stoppages or strikes occur. This is intended to provide a safety net against any disruption to air travel that could have far-reaching consequences.

Many union contracts governed by the Railway Labor Act have amendable dates about three years after they are signed. Once the amendable date has passed and the agreement can be updated, both sides have a 30-day window to request to open negotiations. The contract will renew if the parties do not request talks during this time.

It’s important to note that the amendable date is one of many opportunities for airlines and their unions to change their labor agreements. Both sides can agree to negotiate outside of this window, and many airlines and unions do so regularly to address changes in the industry and other factors.

The Railway Labor Act’s framework for airline labor contracts has helped to promote stability and avoid disruptions in air travel for almost a century. While negotiating new agreements can be lengthy and complex, it has also led to a relatively stable labor environment in an industry essential to the nation’s economy.

The Railway Labor Act got its name because it was first drafted to prevent powerful rail unions from paralyzing national transportation, which relied heavily on railroads at the time. Airlines were added to the Act once they began to rival rail as a critical method of travel and shipping.

The International Association of Machinists and Aerospace Workers (IAM) has been negotiating with United Airlines for months over new labor contracts covering thousands of employees. The two sides have made some progress, but one sticking point has yet to be resolved: job security and status protections for workers.

According to the Machinists Union, these protections are critical for ensuring United employees have a stable and secure work environment. The union has proposed specific language that would provide significant job security and protections for customer service and ramp workers, stores, trainers, and load planners at the airline. However, United has yet to include these provisions in any updated contract, leading to an increasingly tense negotiation stalemate.

By putting profits ahead of its workers and failing to provide the job security and protections necessary in today’s airline industry, United is positioning itself at a competitive disadvantage. Staffing issues continue to plague the airline industry as carriers seek to recover from the COVID-19 pandemic. While most air travel was grounded in 2020, United offered lucrative payouts to entice as many people as possible to retire as soon as possible. The policy allowed United to pocket millions in unspent wage support payments the airline collected from taxpayers.

United, for its part, has stated that it is committed to achieving a fair and equitable agreement with its union workforce. Still, CEO Scott Kirby has repeatedly demanded the airline return to its dark history of outsourcing employees to low-wage contractors – a return that no union worker supports.

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Do Airline Contracts Expire?

February 22, 2023

You’ve probably heard of the Railway Labor Act if you work at an airline or are a frequent air traveler. This federal law, enacted in 1926, established a framework for labor-management relations in the railroad and airline industries. One of the Railway Labor Act’s most significant features is how it governs airline labor contracts.

Compared to most labor contracts with an expiration date set in stone, union contracts at airlines never truly expire. Instead, they become amendable after a particular date. This means that even if a union contract has passed its amendable date, it remains in effect until a new agreement is reached. Another way to think of it is to consider a union contract at an airline or railroad as “updatable” after a specified date instead of “expired.”

This unique feature of airline labor contracts results from the Railway Labor Act’s goal of promoting stability and avoiding disruptive labor disputes in industries essential to the national economy. Under the Act, airlines and their unions must engage in bargaining and mediation procedures before any work stoppages or strikes occur. This is intended to provide a safety net against any disruption to air travel that could have far-reaching consequences.

Many union contracts governed by the Railway Labor Act have amendable dates about three years after they are signed. Once the amendable date has passed and the agreement can be updated, both sides have a 30-day window to request to open negotiations. The contract will renew if the parties do not request talks during this time.

It’s important to note that the amendable date is one of many opportunities for airlines and their unions to change their labor agreements. Both sides can agree to negotiate outside of this window, and many airlines and unions do so regularly to address changes in the industry and other factors.

The Railway Labor Act’s framework for airline labor contracts has helped to promote stability and avoid disruptions in air travel for almost a century. While negotiating new agreements can be lengthy and complex, it has also led to a relatively stable labor environment in an industry essential to the nation’s economy.

The Railway Labor Act got its name because it was first drafted to prevent powerful rail unions from paralyzing national transportation, which relied heavily on railroads at the time. Airlines were added to the Act once they began to rival rail as a critical method of travel and shipping.

The International Association of Machinists and Aerospace Workers (IAM) has been negotiating with United Airlines for months over new labor contracts covering thousands of employees. The two sides have made some progress, but one sticking point has yet to be resolved: job security and status protections for workers.

According to the Machinists Union, these protections are critical for ensuring United employees have a stable and secure work environment. The union has proposed specific language that would provide significant job security and protections for customer service and ramp workers, stores, trainers, and load planners at the airline. However, United has yet to include these provisions in any updated contract, leading to an increasingly tense negotiation stalemate.

By putting profits ahead of its workers and failing to provide the job security and protections necessary in today’s airline industry, United is positioning itself at a competitive disadvantage. Staffing issues continue to plague the airline industry as carriers seek to recover from the COVID-19 pandemic. While most air travel was grounded in 2020, United offered lucrative payouts to entice as many people as possible to retire as soon as possible. The policy allowed United to pocket millions in unspent wage support payments the airline collected from taxpayers.

United, for its part, has stated that it is committed to achieving a fair and equitable agreement with its union workforce. Still, CEO Scott Kirby has repeatedly demanded the airline return to its dark history of outsourcing employees to low-wage contractors – a return that no union worker supports.

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United Airlines Contract Negotiations

United Negotiations Update

United Contract Negotiations Update

The IAM District 141 Negotiations Committee and United Airlines’ negotiators met this week in Chicago as planned. Your negotiations committee passed to United a proposal that would satisfy IAM members’ priorities as outlined at the beginning of this expedited process last year.

We revised our base wage proposals based on recent developments in our industry in like work classifications. IAM members at United Airlines deserve industry-best wage rates, and we are committed to achieving that.

The parties remain far apart on the critical issue of job security. As we have said from the start, we will not come to any agreement with United Airlines that does not significantly strengthen our work scope protections, our no-layoff protections, and our protection of full-time work. I will reiterate ONCE AGAIN that these scope and job security elements are necessary to reach an agreement.

I also want every IAM member at United to know that our scope and job security proposals exist in other IAM agreements in the airline industry. Our proposals are reasonable and justified in every way possible. Most importantly, IAM members have spoken loud and clear that achieving real job security is our top priority. Unfortunately, United management currently believes IAM-United employees don’t deserve that type of job protection. That’s unacceptable.

United negotiators will review our latest proposal. IAM District 141 and United management plan to meet next on March 8, 2023. We will report back to the membership immediately after this next meeting.

In Solidarity,

Your Negotiating Committee
Olu Ajetomobi
Joe Bartz
Victor Hernandez
Barb Martin
Andrea’ Myers
Terry Stansbury
Faysal Silwany
Erik Stenberg
Sue Weisner

Michael G Klemm
President and Directing General Chair, 
District 141,
International Association of Machinists & Aerospace Workers

Recording Secretaries: Please print and post on all IAMAW bulletin Boards.

PAL Agents Secure New Contract with Locked-In Raises and Retro Pay

PAL Agents Secure New Contract with Locked-In Raises and Retro Pay

PAL Agents Secure New Contract with Locked-In Raises and Retro Pay

IAM141.org
Philippine Airlines (PAL) Customer Service Agents and Sales Representatives have ratified a new collective bargaining agreement at the airline. The deal will deliver six years of 3% yearly add-on raises from 2019-2024 for union members in Customer Service, who will also get back pay and additional benefits. Sales Representatives, who are relatively new to the Machinists Union, recognized on February 9, 2022, will get back pay from that date.

The agreement provides two more holidays per year, improved paid leave, increased company retirement contributions, and an increased travel allowance. For the first time, sales representatives at PAL have been covered by contractual language, which outlines their rights and working conditions. The retroactive pay for the agreement will be up to $2,600 for some sales reps and up to $11,000 for all other unified agents.

The vote was held Monday, February 13, through Wednesday, February 15, and was conducted electronically. The deal covers Philippine Airlines agents’ Customer Service and Sales Representatives in Honolulu, San Francisco, Los Angeles, and New York.

Despite being one of the smaller bargaining units represented in Machinists Union District 141, PAL’s workgroup negotiated a contract that met the priorities of union members and won unanimous ratification.

Mike Klemm, the district president of the International Association of Machinists and Aerospace Workers (IAM) that represents PAL’s sales representatives and other agents, praised the agreement, saying, “This new contract provides our members with the fair pay and benefits they deserve for their hard work and dedication to Philippine Airlines. We’re pleased that the company recognized the value of their employees and the importance of investing in their future.”

The IAM represents over half a million workers in the United States, Canada, and Puerto Rico aviation, aerospace, and defense industries. The union has been fighting for fair pay, benefits, and working conditions for its members despite significant challenges facing the airline industry, including increased competition, rising fuel costs, and the ongoing COVID-19 pandemic.

Klemm emphasized the power of collective bargaining and the importance of workers and management coming together to reach a fair agreement. “This agreement shows what can be achieved when workers and management find common ground. It’s a testament to the power of union solidarity and the importance of collective bargaining in the airline industry.”

The successful ratification of the collective bargaining agreement is a significant victory for commercial airline workers, demonstrating the importance of unions in negotiating fair pay, benefits, and working conditions for workers, even in difficult economic times.

Union negotiator Shannon Robello expressed his satisfaction with the deal, saying, “This new collective bargaining agreement provides the fair compensation and benefits our members deserve, recognizing their important contributions to the company’s success.”

Despite the challenges posed by the COVID-19 pandemic, the commercial aviation industry is rebounding in a big way. The number of passengers passing through TSA checkpoints has been steadily increasing in recent months, with more people traveling for business and leisure as restrictions ease and vaccinations become more widespread. Although ticket prices have risen in response to pent-up demand, consumers are still eager to fly, reflecting the renewed sense of the value and reliability of air travel.

“Sean Ryan, Kaleb Rosa, John Burgwinkel, and everyone that helped work on the Negotiating Committee did a fantastic job,” said Robello. “These guys deserve enormous respect for their hard work developing this agreement.”

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PAL Agents Secure New Contract with Locked-In Raises and Retro Pay

February 17, 2023

Philippine Airlines (PAL) Customer Service Agents and Sales Representatives have ratified a new collective bargaining agreement at the airline. The deal will deliver six years of 3% yearly add-on raises from 2019-2024 for union members in Customer Service, who will also get back pay and additional benefits. Sales Representatives, who are relatively new to the Machinists Union, recognized on February 9, 2022, will get back pay from that date.

The agreement provides two more holidays per year, improved paid leave, increased company retirement contributions, and an increased travel allowance. For the first time, sales representatives at PAL have been covered by contractual language, which outlines their rights and working conditions. The retroactive pay for the agreement will be up to $2,600 for some sales reps and up to $11,000 for all other unified agents.

The vote was held Monday, February 13, through Wednesday, February 15, and was conducted electronically. The deal covers Philippine Airlines agents’ Customer Service and Sales Representatives in Honolulu, San Francisco, Los Angeles, and New York.

Despite being one of the smaller bargaining units represented in Machinists Union District 141, PAL’s workgroup negotiated a contract that met the priorities of union members and won unanimous ratification.

Mike Klemm, the district president of the International Association of Machinists and Aerospace Workers (IAM) that represents PAL’s sales representatives and other agents, praised the agreement, saying, “This new contract provides our members with the fair pay and benefits they deserve for their hard work and dedication to Philippine Airlines. We’re pleased that the company recognized the value of their employees and the importance of investing in their future.”

The IAM represents over half a million workers in the United States, Canada, and Puerto Rico aviation, aerospace, and defense industries. The union has been fighting for fair pay, benefits, and working conditions for its members despite significant challenges facing the airline industry, including increased competition, rising fuel costs, and the ongoing COVID-19 pandemic.

Klemm emphasized the power of collective bargaining and the importance of workers and management coming together to reach a fair agreement. “This agreement shows what can be achieved when workers and management find common ground. It’s a testament to the power of union solidarity and the importance of collective bargaining in the airline industry.”

The successful ratification of the collective bargaining agreement is a significant victory for commercial airline workers, demonstrating the importance of unions in negotiating fair pay, benefits, and working conditions for workers, even in difficult economic times.

Union negotiator Shannon Robello expressed his satisfaction with the deal, saying, “This new collective bargaining agreement provides the fair compensation and benefits our members deserve, recognizing their important contributions to the company’s success.”

Despite the challenges posed by the COVID-19 pandemic, the commercial aviation industry is rebounding in a big way. The number of passengers passing through TSA checkpoints has been steadily increasing in recent months, with more people traveling for business and leisure as restrictions ease and vaccinations become more widespread. Although ticket prices have risen in response to pent-up demand, consumers are still eager to fly, reflecting the renewed sense of the value and reliability of air travel.

“Sean Ryan, Kaleb Rosa, John Burgwinkel, and everyone that helped work on the Negotiating Committee did a fantastic job,” said Robello. “These guys deserve enormous respect for their hard work developing this agreement.”

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Machinists Union emerges as leader in US labor organizing

Machinists Union emerges as leader in US labor organizing

Machinists Union emerges as leader in US labor organizing

GoIAM.org

According to data from Bloomberg Law, the Machinists Union, an affiliate of the AFL-CIO, has emerged as the leading union in the National Labor Relations Board (NLRB) union election victories in the United States over the past five years.

The International Association of Machinists and Aerospace Workers (IAM) won an impressive 314 union elections out of 422 held under the NLRB from 2018 through 2022, the highest number among the 58 AFL-CIO affiliate unions. IAM’s success can be attributed to the union’s proactive approach to organizing, which involves investing heavily in organizing campaigns and mobilizing its members and supporters to participate in these efforts. The Machinists Union has successfully organized workers in both traditional and emerging industries.

One of the benefits of union organizing campaigns is incentivizing employers to raise wages and improve benefits to prevent workers from joining a union. Employers are often hostile towards unions, viewing them as threatening their profits and power. This leads them to engage in union avoidance tactics, such as intimidation, coercion, and misinformation. However, when workers begin to show signs they are seriously attempting to unify their workplaces, employers may respond by offering better pay, benefits, and working conditions to prevent workers from joining a union.

This practice is known as the “union effect,” It has been shown to benefit not only union members but also non-union workers. By forcing employers to raise wages and improve benefits, union organizing campaigns help to establish better standards for all workers in a given industry or sector. Unification efforts positively impact the overall economy by reducing income inequality, increasing consumer purchasing power, and improving the overall quality of life for workers and their families.

The Machinists Union’s success in NLRB elections can be partly attributed to its proactive approach to organizing.

“The IAM set out to make growing our strength in numbers our first priority—and the results continue to show,” said IAM International President Robert Martinez Jr. “We are organizing in both our core industries and new ones, and we are so grateful to the IAM Organizing Department and organizers across our union for continuing to fight for justice on the job for new members.” .

The IAM recently committed to boosting organizing resources at its 40th Grand Lodge Convention in October 2022.

“I’m so proud of every IAM organizer for the job they do each and every day,” said IAM Organizing Director Vinny Addeo. “Our work is paying off for working people and we look forward to growing our capabilities even further.”

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Machinists Union emerges as leader in US labor organizing

GoIAM.org
According to data from Bloomberg Law, the Machinists Union, an affiliate of the AFL-CIO, has emerged as the leading union in the National Labor Relations Board (NLRB) union election victories in the United States over the past five years. The International Association of Machinists and Aerospace Workers (IAM) won an impressive 314 union elections out of 422 held under the NLRB from 2018 through 2022, the highest number among the 58 AFL-CIO affiliate unions. IAM’s success can be attributed to the union’s proactive approach to organizing, which involves investing heavily in organizing campaigns and mobilizing its members and supporters to participate in these efforts. The Machinists Union has successfully organized workers in both traditional and emerging industries.

One of the benefits of union organizing campaigns is incentivizing employers to raise wages and improve benefits to prevent workers from joining a union. Employers are often hostile towards unions, viewing them as threatening their profits and power. This leads them to engage in union avoidance tactics, such as intimidation, coercion, and misinformation. However, when workers begin to show signs they are seriously attempting to unify their workplaces, employers may respond by offering better pay, benefits, and working conditions to prevent workers from joining a union.

This practice is known as the “union effect,” It has been shown to benefit not only union members but also non-union workers. By forcing employers to raise wages and improve benefits, union organizing campaigns help to establish better standards for all workers in a given industry or sector. Unification efforts positively impact the overall economy by reducing income inequality, increasing consumer purchasing power, and improving the overall quality of life for workers and their families.

The Machinists Union’s success in NLRB elections can be partly attributed to its proactive approach to organizing.

“The IAM set out to make growing our strength in numbers our first priority—and the results continue to show,” said IAM International President Robert Martinez Jr. “We are organizing in both our core industries and new ones, and we are so grateful to the IAM Organizing Department and organizers across our union for continuing to fight for justice on the job for new members.”

The IAM recently committed to boosting organizing resources at its 40th Grand Lodge Convention in October 2022.

“I’m so proud of every IAM organizer for the job they do each and every day,” said IAM Organizing Director Vinny Addeo. “Our work is paying off for working people and we look forward to growing our capabilities even further.”

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