Airlines Post Best Numbers in Months

Airlines Post Best Numbers in Months

More than 800,000 Americans passed through TSA checkpoints on Monday, the most since mid-March. The uptick comes as key Senators begin to voice support for an additional round of payroll assistance for airlines, and stock prices for carriers post their most significant gains in weeks.

According to federal data, 831,789 passengers boarded flights on Monday, marking the two best weeks for airlines in nearly five months and the second consecutive week of improvement.

Shares of United Airlines stock rose by a little over 9% on the news, closing at $37.54. American stocks jumped 7% to $14 a share. Hawaiian Airlines also showed steady improvement, rising by more than 4% to $13.77.

Despite the welcome news, overall passenger traffic remains low, at only 30% of what it was in 2019. Analysts are cautioning that the summer rush for airlines has not been enough to prevent potential job losses this fall.

In July, airline executives announced plans to cut nearly 100,000 positions as soon as federal protections expire on October 1. Overall, job losses in the sector could soar into the hundreds of thousands.

In response, a coalition of airline unions began asking their members to contact lawmakers asking for an extension of payroll assistance for carriers, which would postpone job cuts until March 2021. The largest such union, the International Association of Machinists and Aerospace Workers, produced more than 3,000 messages and meetings with legislators. Airlines supported the union efforts, with CEOs at United, American, and Southwest offering public efforts to follow the lobbying campaign.

The Democratic Party-controlled House rounded up a majority of Congress willing to support extending the measure. In early August, key Republican Senators and Donald Trump also lent their support, leading many to believe that an additional $25 billion was becoming more likely. However, no plan to extend airline payroll assistance exists so far, and any future agreement may still be weeks away.

“We need to contact our lawmakers; it’s a job requirement at this point,” said IAMAW 141 Legislative Director Dave Roderick. “We can’t put up a ‘Mission Accomplished’ banner and go home,” he said. “We need this assistance as soon as possible. Too many union members live with the stress of not knowing if they will have careers this fall. Every day that goes by without a deal is unacceptable.”

Additional Resources  ///  Lobby Your Senator 

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District 141 Video Report With PHX Local President, Donald Carbonneau

District 141 Video Report With PHX Local President, Donald Carbonneau

A Conversation With New President of Phoenix’s Local 2559, Don Carbonneau.

Brother Don Carbonneau talks about Sky Harbor Lodge and the job of being  a Local President during the pandemic.

Brother Don Started his airline career in 1996 at America West Airlines, where he accumulated 24 years of experience. He is now with American Airlines as a Fleet Service Employee.

When the workers at American West unionized with TWU in 2000, Don Volunteered as a Shop Steward in Phoenix to help serve the membership. From 2001-03, Don Served as TWU Grievance Chairperson in Phoenix.

In 2006, Don transferred with the recently merged US Airways to Boston where he served again as a Shop Steward. In 2011, he worked on the IAM Grievance Committee in Boston under Committee chair Steve Miller. Miller currently serves as Assistant General Chair for District 141. In 2015 Brother Don transferred with American Airlines to Charlotte, North Carolina, and then in 2016 transferred yet again, this time returning to Phoenix. Once back in his home city, Don served as IAM Shop Steward and a term on the Grievance Committee.

Brother Don then was elected just this year as President of his local in Phoenix, for a 3-year term which began January 1, 2020.

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Senators Show Support for Extension of Payroll Protection to Prevent Mass Airline Layoffs in October.

Senators Show Support for Extension of Payroll Protection to Prevent Mass Airline Layoffs in October.

A group of 16 Republican Senators sent a letter to Senate leaders supporting a measure that would provide $25 billion in additional payroll assistance to airlines. President Trump has endorsed the plan, clearing the way for an extension of the Payroll Support Program, which could cancel layoffs and furloughs expected to start on October 1.

At a briefing at the White House on Wednesday, Trump told reporters he would support a measure that would prevent mass furloughs, saying, “We don’t want to lose our airlines…If they’re looking at that, whether they’re Republican or Democrat, I’d certainly be in favor.”

“Obviously, the airline business is not doing very well. I think it’s very important that we keep the airlines going,” the president added.

Senator Cory Gardner (R-CO) drafted the letter that attracted the support of 16 Senate Republicans as of Wednesday evening. Among the Senators supporting the move are eight Republicans who the Machinists & Aerospace union added to a call-list for union members to contact last week. That effort was part of an intensive lobbying campaign by a coalition of airline unions, which led to more than 3,000 individual messages sent to lawmakers.

Mississippi Senator Roger Wicker, who chairs the Senate Committee on Commerce, Science, and Transportation that oversees aviation, also signed the letter along with Senator Shelley Moore Capito (R-WVA), a majority member of the Aviation Sub-Committee. Their endorsement shows that the measure will have support in that committee also.

The Senate letter notes that airline travel has not returned to normal levels, and Congress must take action to prevent massive job losses. “In recent weeks, several airlines have notified significant segments of their workforces that their jobs could be at risk on October 1, 2020, following the expiration of CARES Act relief,” the letter said. “For these reasons, we support a clean extension of payroll support for passenger air carrier employees included in the CARES Act to avoid furloughs and further support those workers.” The letter was addressed to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Chuck Schumer (D-NY).

David Roderick, Legislative Director for District 141 of the International Association of Machinists & Aerospace Workers, said the endorsement from Republicans is critical. “This is important because we now have support from both parties. With Republican help in the Senate, we now have a much better shot at getting this job-saving assistance for our airlines.” Last week, a letter supporting the extension of the Payroll Support Program written by the Chairman of the House Committee on Transportation, Peter DeFazio (D-OR) earned 223 signatures of support from members of Congress.

Although no final bill has been introduced, additional aid for airlines to cover payroll costs is likely to prevent the mass furloughs slated to begin in October, when the payroll support program that is part of the CARES Act will expire. United and American Airlines have notified union members that they plan to cut 60,000 jobs on October 1. Without help from lawmakers, the industry is expected to lose up to one million jobs nationwide. With the additional $25 billion in aid, combined with thousands of airline workers who have retired or taken voluntary leaves of absence, it may be possible for airlines to avoid most furloughs. Southwest has already stated that it does not expect to make significant job cuts, and United’s CEO Scott Kirby said the carrier is working to avoid as many involuntary cuts as possible. Kirby and American CEO Doug Parker have both said they would welcome an additional airline jobs package. “We support our unions and their efforts for this clean six-month renewal,”  Southwest CEO Gary Kelly told employees in July. “Just as before, I am personally involved in delivering that message to our federal leaders.”

“I am very grateful for the work of thousands of union members who took the time to contact their elected representatives and made their voices heard,” said IAMAW District 141 President, Mike Klemm. “This is one of the largest lobbying and outreach efforts we’ve undertaken,” he said. “We’ve been working with the companies, with allies in other unions, and with our IAM Transportation Territory… it’s really been a massive effort.“

He thanked Sito Pantoja, IAMAW General Vice President of Transportation, and National Legislative Director Hasan Solomon who worked on Capitol Hill. “Our entire union made this effort a priority,” said Klemm.

“We need to thank the members of Congress and the Senators who are standing with us, but we can’t take it for granted that airlines will get this aid,” he cautioned. “A lot can still go wrong. But we are still in this fight, and we are starting to turn the tide.”

This extension of the support for airline payrolls, if enacted, will be part of new coronavirus relief legislation. “Recess begins on Friday, and everyone wants to get a deal ready for the president to sign,” said Ines Garcia-Keim, the President of the New Jersey Council of Machinists. “With Trump’s support, this will move very quickly. The fight’s not over, but we’re moving ahead.”

“We want this measure to be passed into law sooner rather than later, obviously,” said David Roderick. “Thousands of our members are living with targets on their backs. We’ve survived one round of furloughs already, which would have cut our hours by half. Now, we are dealing with the stress of entering the holidays with severe levels of job insecurity. It’s urgent for us to get this resolved as soon as possible.”

Senate Plan Does Not Include Funds for Airlines to Avoid Furloughs

Senate Plan Does Not Include Funds for Airlines to Avoid Furloughs

The GOP has released the details of their latest COVID-19 relief legislation named the “HEALS Act.” The proposed legislation not only cuts unemployment benefits to the 20 to 30 million Americans who are currently out of work, but falls short in just about every area of concern for working families.

“This legislation is a slap in the face to working people in this country,” said International President Robert Martinez Jr. “They have no problem handing out a trillion dollars in tax cuts to corporations, but want to nickel and dime unemployed Americans at a time when they need it the most. It appears the Senate may go on summer recess a week from now without bringing a bill to a vote, leaving millions of Americans to fend for themselves when additional pandemic economic compensation ends this Friday. They need to pass a relief package that benefits the people they are supposed to be representing.”

Please contact your Senators and tell them to pass a relief package that helps working people.

In addition to cutting pandemic unemployment compensation from $600 a week to 200 a week, the HEALS Act shortcomings include:

  • No airline or railroad relief
  • Immunity for companies that endanger their employees and the public
  • No OSHA standard protecting employees
  • NO pension relief, no COBRA subsidy, no eviction moratorium extension
  • Fast track to cut Social Security and Medicare (TRUST ACT)
  • No relief money for state and local governments
  • No money for USPS
  • Inadequate funding for schools
  • No funding for, or protections for election
  • No hazard pay for essential employees

Legislators are running out of time, as many of the provisions in the last COVID-19 relief package are about to expire, and some have already ended.

“Disaster is on America’s doorstep,” said House Speaker Nancy Pelosi (D-CA). “Republicans need to get serious immediately, and work with Democrats to save lives and livelihoods during this devastating time.”

“One of the few things that’s kept our economy from deteriorating further is that these unemployment benefits have boosted consumer spending,” said Senate Democratic Leader Chuck Schumer (D-NY). “That’s why economists say the Republican proposal would cost us over a million jobs this year, and 3.4 million jobs next year.”

 

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Video Report: Airline Safety During the Pandemic

Video Report: Airline Safety During the Pandemic

A Conversation About Union-Level Safety Activism With Dennis Spencer

Gate-Side Airline Safety Activism, Created, Directed and Maintained by Front-Line Union Members

Brother Spencer has been fighting for workers safety since 2008, when he became the Safety Chair for his Philadelphia Local.   Three Years ago District Lodge 141 PDGC Mike Klemm appointed Brother Dennis as a 141 Safety Coordinator. Dennis Hired on with Legacy US 1989-accumulating over 31 years of airline experience  he currently is an IAM/TWU Association GSAP ERC member and is also the Union Safety System Administrator. In that role, Dennis is charged with collecting and maintaining data critical achieving a safe workplace at airports aroung the nation.

He is a proud member of  the Obie O’Brian Local 1776 family where he currently serves as a Trustee and as a EAP Peer to Peer Representative.

Dennis has been very active over the years since 2002 doing Community Service for different Charities, including youth sports and  raising over 250,000 dollars in Free Style Wrestling.

Dennis is Married and Has an 18 year old son.

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ACTION ALERT: Contact Senators to Extend PSP and Avoid Furloughs

ACTION ALERT: Contact Senators to Extend PSP and Avoid Furloughs

Sisters and Brothers, 

As you know, Congress is currently negotiating another stimulus bill to address the economic impact of the coronavirus pandemic. I will be first to admit I didn’t think we had a chance to get an extension of the Payroll Support Program (PSP), but now thanks to the hard work of our legislative team at the IAMAW Transportation Territory, collaborating with our own District 141 Legislative and Communications team and the grassroots work all of you are doing, we are very much in the game and a six-month extension of this vital program looks within reach.

This week we received the commitment of 223 members of Congress who signed a letter supporting the extension of the PSP. We must now turn our attention to the US Senate, who must act before their August recess so airlines can avoid widespread furloughs on October 1st. 

Please take a look at the list of senators below. We have identified them as being on the fence on their support of the PSP extension, and with another push from us, we may get across the finish line. The first link following the Senator’s name lists contact information if you would like to call their office or write a personal letter; the second link takes you to the IAM Action Alert program, which makes contact very easy with a written letter sent via email to your Senator. 

It is especially important to reach out to Senators in states where our companies have hubs or large operations where there are hundreds or thousands of jobs on the line, but every call we make or email we send can get us closer to our goal.  

I ask that you please contact your Senator this week, especially if his or her name is on the attached list. Together, we may be able to prevent anyone from getting furloughed come October 1st.

 

 

In Solidarity,

Michael G. Klemm

President & Directing General Chair,
IAMAW District 141

     United States Senate Call-List

ALASKA

ARIZONA

COLORADO

FLORIDA

IOWA

KENTUCKY

MAINE

MONTANA

MISSOURI

OHIO

PENNSYLVANIA

NORTH CAROLINA

TEXAS

UTAH

WISCONSIN