Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: “Reducing workers’ hours without their consent reduces workers’ paychecks in the same way that reducing workers’ rate of pay would.”

 

This week, Senator Bob Casey (D-PA) called on Treasury Secretary Steve Mnuchin to issue clear guidance to airlines and industry lobbyists stating that cutting the pay and benefits of airline workers violates the CARES Act, even if those cuts come by way of furloughing full-time workers to part-time. Senator Casey is a member of the Senate Committee on Finance, which played a major role in drafting the bill. 

Senator Casey said the clear intent of the CARES Act, which delivered billions of taxpayer dollars to airlines, was “specifically to protect the jobs and livelihoods of workers in the airline industry,” and that airlines could not reduce the pay of their workers after accepting relief funds.  Further, Senator Casey said in the letter that reducing full-time workers to part-time reduces their pay and benefits, despite leaving pay rates intact. 

“I write to express my concern that multiple air carriers have threatened to or are currently involuntarily reducing the hours of employees despite receiving payroll support under the Coronavirus Aid, Relief and Economic Security (CARES) Act,” Senator Casey said in the letter. “In passing this legislation, Congress made clear its intention that any air carrier receiving assistance must agree to maintain payroll and not cut employee compensation. I urge you to immediately issue guidance that makes clear that unilateral and involuntary reductions in employee hours are prohibited under the CARES Act.” 

Senator Casey also sent letters to the CEOs of United, jetBlue, and Delta, and to Airlines for America, the lead lobbying group for US air carriers, putting industry executives and lobbyists on notice about the importance of following the law and respecting workers.  

A growing number of lawmakers involved in creating the CARES Act have written to the CEOs of major airlines following a scheme by United Airlines executives to take billions in relief funds intended to cover payrolls – and then cut payrolls while keeping the money. United Executive Vice President Greg Hart tried to defend the move and said the furloughs weren’t really pay cuts because pay rates would remain the same. Senator Casey, who has a legislative record promoting economic security for working families, showed little patience for such word games. 

“This is in clear violation of Congress’ intent and should not be undertaken by any air carriers accepting federal assistance,” Senator Casey said. 

“Congress’ intent that air carriers use this assistance to fully protect workers’ compensation and employment was clear,” he wrote. 

IAMAW District Legislative Director David Roderick praised the actions of Senator Casey and other lawmakers who have come forward in defense of working families in the airline industry over the past two months. “Senator Casey is a true friend for airline workers. He’s been a trusted ally and strong voice for airline safety and the fair treatment of airline employees and passengers for years.” 

Read the full statement by Senator Casey Here >>

Do you live in Pennsylvania?

Lawmakers need to know that we appreciate their help. If you are a constituent of Senator Bob Casey, please take a second to let him know that our union values his assist.

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What do YOU Think?

Do you feel that furloughs before October 1st are a violation of the CARES Act…

…even if they are only furloughing full-time agents to part-time?

 

Union Members at American Get $3,000 Bonuses This Week

Union Members at American Get $3,000 Bonuses This Week

Honoring Agreements, Union Members at American Get Bonuses This Week

Bonuses budgeted before the coronavirus pandemic spread widely in the United States are scheduled to go out today and tomorrow to union members in fleet service and aircraft maintenance at American Airlines. (The International Association of Machinists and Aerospace Workers and the Transport Workers Union represent workers at American in an alliance known as “The Association.”)

Qualifying fleet service workers will receive $3,000 signing bonus checks this week. 

To qualify for the payments, every union member must have been an active employee at American as of March 26, 2020. Union members on certain types of company and military leave will get the money when they return to work.

The agreements also call for cash payouts because of improvements in vacation accruals, which will add thousands more in retroactive compensation for some members.

The money will be paid out like regular paychecks. Statements showing the deposits should be visible in bank statements starting today.

The bonuses are part of agreements between American Airlines executives and their unionized fleet service workers, which were ratified by over 90% of eligible voting members of the IAM and TWU Association on March 26th. In a joint statement released after the agreements were reached, Sito Pantoja, Association Chairman, and Alex Garcia, Vice Chairman said: “Together, after more than four years, the terms of these agreements are proof that we took the right path and achieved the best contracts in the airline industry.”

Mike Klemm, President and Directing General Chair of District 141 of the IAM said that given the current status of the airline industry and the bleak forecasts, union members at American would be well-served if they are cautious about how they use their bonus paychecks. Echoing statements he made in a letter to IAM members at United Airlines, Klemm noted that without a substantial increase in demand for air travel, “furloughs at every US-based airline at the end of September are almost certain.” He added: “I urge you to save as much of this earned bonus as you can, and spend some time in the next few months to prepare for the storms we see forming on the horizon. We can only hope it turns out to be rainy days and not a tsunami, but our union will be with you and will use every resource at our disposal to defend your rights and your livelihoods, just like we did when we reached these historic agreements with American Airlines.”

Employees of American Airlines may submit questions about this payment via the company’s Payroll Service Center, at psc@aa.com.

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A Slow but Steady Airline Recovery is Happening

A Slow but Steady Airline Recovery is Happening

Shares of several airlines have seen a sharp increase in value over the past week, as more travelers begin a slow return, prompting carriers to add more routes and flights to their schedules. While overall demand remains at critical levels, we now have the first clear evidence that the airline industry is beginning to heal from the COVID pandemic. 

In March, Congress approved $50 Billion in aid to airlines, to preserve the highly-trained (and difficult to replace) commercial aviation workforce. Congress also hoped to protect the larger civil aviation networks that provide life-sustaining economic connections throughout the American economy. 

All major airlines have warned that absent another round of help from Congress, America will have a much smaller capacity for air transport and travel. Further, if the direst warnings coming from industry insiders are borne out, the American economy could lose more than a third of the entire civil aviation workforce in the space of just a few weeks starting in October.

Such a massive reduction in jobs would not only cripple any recovery this fall but would also have catastrophic ripple effects throughout the rest of the economy, as businesses that depend on airlines and air shipping lose access to critical parts of their business.

Last week, the industry got a few hopeful signs that air travel would return. United, American, and Delta are filling planes, and are considering adding back flights. Currently, airlines are only operating at certain times of the day, in schedules called “banks.” United and American have both reported that they are bringing back a few banks in select hubs that were stopped due to low demand. The latest round of inevitable social media outrage saw shocked Tweets revealing images of airplanes full of passengers. This may have horrified the Twittersphere, but it was cause for celebration for everyone that depends on air travel. Figuring out how to handle too many passengers is a good problem for airlines to have right now.

Along with passengers, investors are also starting to come back.

Shares of United Airlines Holdings Inc. were up 2% in premarket trading on Tuesday, extending a larger 21% rally for the week. The posting represents the largest gains since the COVID pandemic began hitting airlines two months ago.

United reported modest improvement and reduced cancellations during the second quarter, improvements that the company expects to continue through July.

American Airlines experienced a brief 9.2% surge last week, led by upbeat new data from TSA that indicates an increase in travel demand. That report detailed an uptick in passengers overall, showing an average of 205,010 passengers a day going through TSA security checkpoints. This is the fourth straight week that the agency reported an increase.

Overall air traffic is down more than 91% from last year, according to the TSA reports.

The largest transportation and aerospace union in the US is the International Association of Machinists and Aerospace Workers, which includes tens of thousands of airline personnel. IAMAW District President Mike Klemm warned the 38,000 members of District 141 that investor support and passenger demand might not return fast enough to prevent job losses in October.

To be perfectly clear, if demand for air travel does not rebound before September 30, 2020, there likely will be furloughs at every single US-based airline,” Klemm said while promising that the union would prevent involuntary furloughs that violate union contracts and the terms of the CARES Act. IAMAW ramp and customer service workers successfully fought back a plan by United to force furloughs after accepting $5 billion in taxpayer money intended to prevent job losses. 

The union is also proposing several cost-cutting measures to United, including ways to incentivize early retirement through medical bridges. These voluntary measures, along with increased demand for air travel, are welcome signs. 

However, IAMAW District Legislative Director Dave Roderick is also suggesting that the union stay in constant contact with lawmakers. “We need to stay in the conversation,” Roderick said. “We need to make sure that our members of Congress understand the facts from the union perspective, which is the side that clocks in and out every day to put food on the table. We can’t afford to be passive at this moment. We need to stay engaged, and do whatever we can to impress on lawmakers the importance of passing another assistance package before October,” Roderick said.

 

The Time to Prepare is Now

The Time to Prepare is Now

May 19, 2020

This communication will discuss continuing developments at United Airlines, however, I urge all District Lodge 141 members to read this update. 

Regrettably, United Airlines and District 141 have disagreed vehemently on how to handle the steep decline in demand for air travel due to the coronavirus pandemic. On May 1, 2020, United Airlines announced an involuntary furlough of approximately 14,000 full-time fleet service and customer service employees, which would have caused a pay and benefits cut, and also multiple violations of our contracts.

As you know, United management reversed course after DL 141 filed a lawsuit in federal court affirming that the forced reductions were both a violation of the CARES Act and our collective bargaining agreements. I want to be crystal clear: The May 1st Greg Hart and Kate Gebo plan to involuntarily furlough every full-time employee to part-time WAS NOT allowable under our collective bargaining agreements. And, it WILL NOT be allowable at any future date. If Mr. Hart and Ms. Gebo attempt this ill-advised action again, you can count on IAMAW District 141 to fight it with every available resource our union possesses.

Over the past couple of weeks, United has resorted to coordinated scare tactics and misinformation to get as many IAM-represented workers as possible to take a voluntary COLA. I informed United management numerous times to stop threatening IAM members with illegal and non-contractual involuntary furloughs. Finally, last week at a virtual town hall, SVP of Airport Operations, Jon Roitman, stated there will be no involuntary furloughs through September 30, 2020. We’ve said all along that this is something United management could not do. 

We fully understand that we need our carriers to be successful for everyone to maintain their ability to put a roof over their head and food on their families’ table. District 141 stands ready to engage with United to develop voluntary programs to achieve cost savings and to put together a long-term plan that benefits employees and our airline. Since our lawsuit was withdrawn, United management has not engaged with District 141. United management should understand that by working with us, we can devise creative ways to help the carrier and, at the same time, care for United employees who have turned this airline around and who are bravely serving our country every single day by providing essential services.

To be perfectly clear, if demand for air travel does not rebound before September 30, 2020, there likely will be furloughs at every single US-based airline. 

The number of laid-off employees will be determined by the demand for air travel, and also by the level of participation in voluntary COLA and other separation programs. I sincerely ask that you prepare for a potential furlough in October. Please hold off on buying any new big-ticket items, such as a car or house. I hope you will take every step you can to help save money for yourself and your family. It is very rare to have five to six months to prepare for a furlough, so I hope everyone will use this time to take the necessary precautionary steps.

Please know that the IAM is fully behind you and we will do everything possible to defend ALL IAM members and our families at our airlines during this time.

God bless and stay safe, 

Mike Klemm

President and Directing General Chair,
District 141,
International Association of Machinists and Aerospace Workers

 

 

 

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TWU / IAM System Seniority Protest

TWU / IAM System Seniority Protest

As required by the recently ratified Association CBAs, American Airlines has posted the updated seniority lists for all classifications. That posting can be found on JetNet at https://people.aa.com/sm/reports/twuiam_seniority/.

Association represented employees may protest any omission or error, which they believe affects their seniority, within thirty (30) days of the posting. Timely submissions received on or before Monday June 15, 2020 will be reviewed and a final determination of seniority, adjustment or denial, will be binding on the parties. Keep in mind that all seniority dates prior to September 16, 2016 were subject to an earlier final and binding protest process. All seniority determinations will be recorded and final revised seniority lists will be posted by the Company. Any employee on leave at the time of posting will have a period of thirty (30) days from his/her date of return to service to file a protest.

The process for submitting all seniority protests is contained on the attached form. Submissions may also be made by email to the following addresses:

TWU M&R Protests may be sent to: AAMaintprotest@twu.org

TWU MLS Protests may be sent to: AAMLSprotest@twu.org

TWU Fleet may be sent to: AAFleetprotest@twu.org

IAM Fleet Protests may be sent to: IAM_Seniority_Protest@iamdl142.org

IAM Mechanic & Related, MLS and MTS Protests may be sent to: IAM_Seniority_Protest@iamdl142.org

      Additional Materials

AA Fleet Service Master Seniority List >

Association Seniority Protest Form >

Javits Memorandum >

TWU / IAM System Seniority Protest

Information for American Airlines Fleet re: 2020 Agreement

Attention TWU and IAM members:

  1. Persons who are members of either the TWU or IAM shall remain members of their respective union and will pay dues to that union wherever they may work or whenever or wherever they may transfer within Association covered workgroups or CBAs.
  2. New hire employees into any Association covered position shall become members of the union assigned representation responsibility for the location in the Allocation charts and will remain members of that respective union whenever or wherever they may transfer within Association covered workgroups or CBAs.
  3. Preferential hires, meaning those who were hired under the preferential hiring agreement prior to ratification of the JCBAs and joined the union opposite from their original union, shall remain members and pay dues to the union they were represented by and belonged to on the date of ratification. Should any of those preferential hires desire to revert to membership in their original union, he or she shall advise the Local officers of the union they are currently a member of, in writing and within thirty (30) days, that they wish to revert their membership.

 

Adopted April 7, 2020.

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Visit TWU-IAM Association Website >>