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. 

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Stay up to date with all the latest news and information from the Machinists Union

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. 

Related

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

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.”

Justice Department Expected to Block JetBlue / Spirit Merger

DOJ Expected to Block JetBlue / Sprit MergerIAM141.org March 6, 2023According 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...

Machinists Union emerges as leader in US labor organizing

Machinists Union emerges as leader in US labor organizingGoIAM.org February 15, 2023According 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...

The Resilience of Labor Unions: A Look at the Latest BLS Data

The Resilience of Labor Unions: A Look at the Latest BLS DataIAM141.org January 31, 2023The most recent jobs summary by the Bureau of Labor Statistics shows that union membership in the U.S. decreased from 10.3% in 2021 to 10.1% in 2022. The change marks the lowest...

Broken Promises: Informational Picket Draws Crowds at LAX

Broken Promises: Informational Picket Draws Massive Turnout at LAXIAM141.org January 25, 2023Los Angeles International Airport (LAX) - A coalition of unions representing all unified workers at United Airlines held an informational picket on Wednesday at LAX Airport in...

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

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.”

Related News

The Resilience of Labor Unions: A Look at the Latest BLS Data

The Resilience of Labor Unions: A Look at the Latest BLS Data

The Resilience of Labor Unions: A Look at the Latest BLS Data

IAM141.org

The most recent jobs summary by the Bureau of Labor Statistics shows that union membership in the U.S. decreased from 10.3% in 2021 to 10.1% in 2022. The change marks the lowest percentage of union membership recorded by BLS since it started collecting data in 1983.

But it may be a little early for anti-worker law firms to start popping open the champagne and caviar. Yes, the percentage of union members within the workforce has dropped to an all-time low. But, the numbers also show explosive levels of union growth – some of the largest such gains in generations.

How can unification as a percentage of the overall workforce be at its lowest point in decades – while, at the same time, union growth is at record levels? The answer comes down to very, very simple math. And politics.

Simply stated, union growth grew at historic rates, but nonunion jobs were added to the economy even faster.

There is a difference between “percentages” and “total numbers.” Union membership dropped as a percentage of the total workforce as the entire American workforce grew at historic levels. Meanwhile, according to the BLS survey, Union Membership grew by more than a quarter million new members over the same period, some of the most significant growth in decades.

Last year, labor unions made up 10.3% of the American workforce. But, the total number of wage and salary workers grew by 5.3 million (mostly among nonunion workers), or 3.9 percent. So, the 2022 Union Membership numbers now have to be calculated from a workforce that is effectively 104% of its original power. At the same time, union membership grew by an astounding 273,000 new workers, an increase of more than a quarter million new union members. Once we account for retirements and attrition, unions grew at their fastest rate in decades but slower than the overall workforce.

Despite the decline in the percentage of union membership, there are numerous reasons to believe that unions will continue to grow in 2023. First, the growing interest among employees in unified workplaces, with over 70% of American workers supporting unions, provides a strong foundation for continued growth. Additionally, the increase in union members by 273,000, even with a larger overall workforce, highlights the resilience and appeal of unions. Furthermore, with increasing concerns about income inequality and workers’ rights, the current economic and political climate will likely drive more workers to seek the protections and benefits that unions provide. With these factors in play, unions will likely continue to grow and play a vital role in shaping the future of work in the United States.

However, recent union growth is proving to have real staying power. The number of private-sector union members rose by 193,000 to 7.2 million in 2022. The industries showing exceptionally high unionization rates included utilities (with 19.6%), movies, and sound engineering (with 17.3%). Transportation and warehousing workers, which includes Machinists Union members in commercial aviation, rounded up the top three, with 14.5%. 

According to research by the Economic Policy Institute, more than 60 million Americans would join a union if they could.   The fact that overall job creation is outpacing union growth is attributable to anti-worker laws that prevent workplaces from unifying in the first place. 

“The fact that tens of millions of workers want to join a union and can’t is a glaring testament to how broken U.S. labor law is,” a report by the EPI read. “It is urgent that Congress pass the Protecting the Right to Organize (PRO) Act and the Public Service Freedom to Negotiate Act.”

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Stay up to date with all the latest news and information from the Machinists Union

The Resilience of Labor Unions: A Look at the Latest BLS Data

January 31, 2023

Listen to this article >>

The most recent jobs summary by the Bureau of Labor Statistics shows that union membership in the U.S. decreased from 10.3% in 2021 to 10.1% in 2022. The change marks the lowest percentage of union membership recorded by BLS since it started collecting data in 1983.

But it may be a little early for anti-worker law firms to start popping open the champagne and caviar. Yes, the percentage of union members within the workforce has dropped to an all-time low. But, the numbers also show explosive levels of union growth – some of the largest such gains in generations.

How can unification as a percentage of the overall workforce be at its lowest point in decades – while, at the same time, union growth is at record levels? The answer comes down to very, very simple math. And politics.

Simply stated, union growth grew at historic rates, but nonunion jobs were added to the economy even faster.

There is a difference between “percentages” and “total numbers.” Union membership dropped as a percentage of the total workforce as the entire workforce grew at historic levels. Meanwhile, according to the BLS survey, Union Membership grew by more than quarter million new members over the same period, some of the most significant growth in decades.

Last year, labor unions made up 10.3% of the American workforce. But, the total number of wage and salary workers grew by 5.3 million (mostly among nonunion workers), or 3.9 percent. So, the 2022 Union Membership numbers now have to be calculated from a workforce that is effectively 104% of its original power. At the same time, union membership grew by an astounding 273,000 new workers, an increase of more than a quarter million new union members. Once we account for retirements and attrition, unions grew at their fastest rate in decades but slower than the overall workforce.

Despite the decline in the percentage of union membership, there are numerous reasons to believe that unions will continue to grow in 2023. First, the growing interest among employees in unified workplaces, with over 70% of American workers supporting unions, provides a strong foundation for continued growth. Additionally, the increase in union members by 273,000, even with a larger overall workforce, highlights the resilience and appeal of unions. Furthermore, with increasing concerns about income inequality and workers’ rights, the current economic and political climate will likely drive more workers to seek the protections and benefits that unions provide. With these factors in play, unions will likely continue to grow and play a vital role in shaping the future of work in the United States.

However, recent union growth is proving to have real staying power. The number of private-sector union members rose by 193,000 to 7.2 million in 2022. The industries showing exceptionally high unionization rates included utilities (with 19.6%), movies, and sound engineering (with 17.3%). Transportation and warehousing workers, which includes Machinists Union members in commercial aviation, rounded up the top three, with 14.5%. 

According to research by the Economic Policy Institute, more than 60 million Americans would join a union if they could.   The fact that overall job creation is outpacing union growth is attributable to anti-worker laws that prevent workplaces from unifying in the first place. 

“The fact that tens of millions of workers want to join a union and can’t is a glaring testament to how broken U.S. labor law is,” a report by the EPI read. “It is urgent that Congress pass the Protecting the Right to Organize (PRO) Act and the Public Service Freedom to Negotiate Act.”

Related

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Broken Promises: Informational Picket Draws Crowds at LAX

Broken Promises: Informational Picket Draws Crowds at LAX

Broken Promises: Informational Picket Draws Massive Turnout at LAX

IAM141.org

Los Angeles International Airport (LAX) – A coalition of unions representing all unified workers at United Airlines held an informational picket on Wednesday at LAX Airport in Los Angeles. Rallygoers marched to bring attention to ongoing contract negotiations with the airline, which have been met with delays and bad faith bargaining, some of which have drug on for years. United Pilots, for example, are in the fourth year of negotiations with the carrier. 

The coalition, which includes the International Association of Machinists and Aerospace Workers (IAM) and the Air Line Pilots Association (ALPA), Teamsters (IBT), and Flight Attendants of America (AFA), included Pilots, mechanics, flight attendants, customer service agents, and baggage handlers.

United has reneged on several commitments it made to its workforce. In the lead-up to negotiations, executives promised that it would not seek to outsource jobs and that it would offer strong wages compared to other airlines. Instead, the company is trying to force union members to accept outsourcing and plans to pay the lowest wages of any of the Big Three airlines. Executives want lower than promised pay for gate, ticket counter, and customer service workers, in particular. The new pay rates proposed by United would sit at levels below similar workgroups at smaller airlines and discount carriers such as Alaska and Southwest Airlines. 

Further straining labor relations at the company is the issue of profit sharing. 

United announced earlier this year that a rush of summer and holiday bookings led to two back-to-back quarters that were among the most lucrative in the airline’s history. Over the summer, United reported total earnings near $1 billion. The carrier brought in a net income of $942 million, with an adjusted profit of $927 million. “Operational Performance,” one of the indicators that help determine the productivity of front-line workers, were among the best in the history of the airline. Over the  holidays, United again generated higher-than-expected earnings, totaling more than $840 million.

 

ALPA President,  Garth Thompson

The performance of employees was the driving factor behind the profits. In the Fourth Quarter, the on-time performance came in at an enviable 80%, allowing United to boast the best on-time and completion rate of any network carrier at three major hubs (Chicago, Denver, and Houston.) Moreover, United employees created the lowest fourth-quarter misconnect rate in the airline’s history. All of which demonstrate the critical role of front-line workers at the carrier.

The profits have led United to increase spending for its “Good Leads the Way” marketing campaign, and order new planes, among many other programs. Executives have also opted to give themselves lavish salary increases. CEO Scott Kirby alone now has an estimated net worth of more than $32 million, according to the executive tracking site Wallmiime.com. Compared to front-line workers at United, Kirby will take home $126 for each dollar a typical worker earns.

Yet, executives suddenly become tight-fisted when sharing the record profits with the workforces that created them. Ground and Gate agents and dispatchers at United are getting an anemic .84% profit sharing this year. Despite the airline’s difficulty in hiring new pilots amid a nationwide shortage, pilots at United are only getting slightly more – 1.7%. (United has also denied pilots a new contract for four years.)

Informational pickets have become popular among union members, as they help raise awareness about their workplace concerns while also demonstrating solidarity. These pickets typically involve union members gathering outside of a company’s workplace or other public location, holding signs to be seen by passing pedestrians and motorists. 

 

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Stay up to date with all the latest news and information from the Machinists Union

Broken Promises: Informational Picket Draws Crowds at LAX

January 25, 2023

Listen to this article >>

Los Angeles International Airport (LAX) – A coalition of unions representing all unified workers at United Airlines held an informational picket on Wednesday at LAX Airport in Los Angeles. Rallygoers marched to bring attention to ongoing contract negotiations with the airline, which have been met with delays and bad faith bargaining, some of which have drug on for years. United Pilots, for example, are in the fourth year of negotiations with the carrier. 

The coalition, which includes the International Association of Machinists and Aerospace Workers (IAM) and the Air Line Pilots Association (ALPA), Teamsters (IBT), and Flight Attendants of America (AFA), included Pilots, mechanics, flight attendants, customer service agents, and baggage handlers.

United has reneged on several commitments it made to its workforce. In the lead-up to negotiations, executives promised that it would not seek to outsource jobs and that it would offer strong wages compared to other airlines. Instead, the company is trying to force union members to accept outsourcing and plans to pay the lowest wages of any of the Big Three airlines. Executives want lower than promised pay for gate, ticket counter, and customer service workers, in particular. The new pay rates proposed by United would sit at levels below similar workgroups at smaller airlines and discount carriers such as Alaska and Southwest Airlines. 

Further straining labor relations at the company is the issue of profit sharing. 

United announced earlier this year that a rush of summer and holiday bookings led to two back-to-back quarters that were among the most lucrative in the airline’s history. Over the summer, United reported total earnings near $1 billion. The carrier brought in a net income of $942 million, with an adjusted profit of $927 million. “Operational Performance,” one of the indicators that help determine the productivity of front-line workers, were among the best in the history of the airline. Over the  holidays, United again generated higher-than-expected earnings, totaling more than $840 million.

The performance of employees was the driving factor behind the profits. In the Fourth Quarter, the on-time performance came in at an enviable 80%, allowing United to boast the best on-time and completion rate of any network carrier at three major hubs (Chicago, Denver, and Houston.) Moreover, United employees created the lowest fourth-quarter misconnect rate in the airline’s history. All of which demonstrate the critical role of front-line workers at the carrier.

The profits have led United to increase spending for its “Good Leads the Way” marketing campaign, and order new planes, among many other programs. Executives have also opted to give themselves lavish salary increases. CEO Scott Kirby alone now has an estimated net worth of more than $32 million, according to the executive tracking site Wallmiime.com. Compared to front-line workers at United, Kirby will take home $126 for each dollar a typical worker earns.

Yet, executives suddenly become tight-fisted when sharing the record profits with the workforces that created them. Ground and Gate agents and dispatchers at United are getting an anemic .84% profit sharing this year. Despite the airline’s difficulty in hiring new pilots amid a nationwide shortage, pilots at United are only getting slightly more – 1.7%. (United has also denied pilots a new contract for four years.)

Informational pickets have become popular among union members, as they help raise awareness about their workplace concerns while also demonstrating solidarity. These pickets typically involve union members gathering outside of a company’s workplace or other public location, holding signs to be seen by passing pedestrians and motorists. 

Related

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Hundreds of Union Members Join Forces at SFO

Hundreds of Union Members Join Forces at SFO

Tony Parker, President of Machinists Union Local 1781 holds a CONTRACT NOW sign at an informational picket held at San Franciscos’ International Airport.

Hundreds of Union Members Join Forces at SFO to Demand Fair Contracts

IAM141.org

SAN FRANCISCO INTERNATIONAL AIRPORT (SFO) – On Wednesday, front-line union workers at United came together at SFO Airport for an informational picket to call on the airline to complete long-overdue contract negotiations. Hundreds of union members from every work group at the carrier participated in the rally.

Over the past year, air travelers have seen repeated delays, overbooked flights, and cancellations, among many other woes. According to United Airlines’ front-line workers, the problems passengers face can be placed squarely at the feet of company management, who have built a business model based around short-staffing, unfair wages, and outsourcing. 

“We’re here because we want management to recognize the sacrifices and contributions we have made during the worst downturn in aviation history,” said Roger Phillips, a Pilot at United and spokesman for the Airline Pilots Association (ALPA) who organized the picket. “United just announced its fourth-quarter earnings last night, and announced that we made nearly $1 billion for this airline,” he continued. “It’s time for United to reinvest some of that money into the people that created those profits.”

United reported a profit of $843 million in the last quarter of 2022 on total revenue of $12.4 billion. The revenue figure was almost 14% higher than in 2019 before the COVID-19 pandemic ravaged the travel industry. The earnings report follows a profit of $942 million, which the Chicago-based carrier posted over the summer. 

Despite the industry-leading income, United executives are demanding wages for fleet and customer service agents that fall far short of what was promised in the lead-up to negotiations. In early 2022, United committed to providing industry-leading wages to its 38,000 fleet and customer-facing employees. However, by the time contract talks began, United was only willing to offer payscales that would be the lowest of the “Big Three” carriers. Wages at United would also fall below those of smaller airlines such as Southwest and Alaska. Low wages allow other airlines to outcompete United for workers in a tight labor market. United is also asking for union members to agree to outsourcing, something that negotiators have flatly refused to consider.

On Wednesday, labor tensions at the carrier led hundreds of workers to hold an informational picket at San Francisco International Airport. Marching alongside Pilots were Fleet and Customer Service workers, Security Guards and Flight Attendants – all of whom are dealing with company foot-dragging and unfair contract proposals with inadequate wages and job protections for union members.

Machinists Union General Vice President Richie Johnsen, who marched at the rally, called on United to invest in workers. “United Airlines is out touting how much they’ve invested in this airline,” he said. “To make it the greatest airline in the history of airlines, according to Scott Kirby. They’ve invested in airplanes and airports, they’ve invested in fuel, they’ve invested in green energy,” he continued.

“But, they haven’t invested in their most valuable asset. Which is their employees,” Johnsen said. “It’s time for United to invest in employees.”

United pilots have gone four years without a new contract.

The four unions at United held an earlier rally in Houston, Texas, during the United Board of Directors Meeting. At that event, Scot Kirby went outside to meet with the picketers. He told ramp and customer service workers that negotiations were stalled due to union negotiators’ refusal to budge on outsourcing. District President Mike Klemm told IAM members, “United management’s refusal to provide acceptable job security and wage rates for IAM-represented workers is unacceptable and disgraceful,” said Klemm. “IAM members at United Airlines have spoken loudly and clearly that the issues of wages and job security are paramount to any acceptable tentative agreement.”

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Stay up to date with all the latest news and information from the Machinists Union

Tony Parker, President of Machinists Union Local 1781, holds a CONTRACT NOW sign at an informational picket held at San Franciscos’ International Airport.

Hundreds of Union Members Join Forces at SFO 

January 21, 2023

LISTEN TO THIS ARTICLE >>

SAN FRANCISCO INTERNATIONAL AIRPORT (SFO) – On Wednesday, front-line union workers at United came together at SFO Airport for an informational picket to call on the airline to complete long-overdue contract negotiations. Hundreds of union members from every work group at the carrier participated in the rally.

Over the past year, air travelers have seen repeated delays, overbooked flights, and cancellations, among many other woes. According to United Airlines’ front-line workers, the problems passengers face can be placed squarely at the feet of company management, who have built a business model based around short-staffing, unfair wages, and outsourcing. 

“We’re here because we want management to recognize the sacrifices and contributions we have made during the worst downturn in aviation history,” said Roger Phillips, a Pilot at United and spokesman for the Airline Pilots Association (ALPA) who organized the picket. “United just announced its fourth-quarter earnings last night, and announced that we made nearly $1 billion for this airline,” he continued. “It’s time for United to reinvest some of that money into the people that created those profits.”

United reported a profit of $843 million in the last quarter of 2022 on total revenue of $12.4 billion. The revenue figure was almost 14% higher than in 2019 before the COVID-19 pandemic ravaged the travel industry. The earnings report follows a profit of $942 million, which the Chicago-based carrier posted over the summer. 

Despite the industry-leading income, United executives are demanding wages for fleet and customer service agents that fall far short of what was promised in the lead-up to negotiations. In early 2022, United committed to providing industry-leading wages to its 38,000 fleet and customer-facing employees. However, by the time contract talks began, United was only willing to offer payscales that would be the lowest of the “Big Three” carriers. Wages at United would also fall below those of smaller airlines such as Southwest and Alaska. Low wages allow other airlines to outcompete United for workers in a tight labor market. United is also asking for union members to agree to outsourcing, something that negotiators have flatly refused to consider.

On Wednesday, labor tensions at the carrier led hundreds of workers to hold an informational picket at San Francisco International Airport. Marching alongside Pilots were Fleet and Customer Service workers, Security Guards and Flight Attendants – all of whom are dealing with company foot-dragging and unfair contract proposals with inadequate wages and job protections for union members.

Machinists Union General Vice President Richie Johnsen, who marched at the rally, called on United to invest in workers. “United Airlines is out touting how much they’ve invested in this airline,” he said. “To make it the greatest airline in the history of airlines, according to Scott Kirby. They’ve invested in airplanes and airports, they’ve invested in fuel, they’ve invested in green energy,” he continued.

“But, they haven’t invested in their most valuable asset. Which is their employees,” Johnsen said. “It’s time for United to invest in employees.”

United pilots have gone four years without a new contract.

The four unions at United held an earlier rally in Houston, Texas, during the United Board of Directors Meeting. At that event, Scot Kirby went outside to meet with the picketers. He told ramp and customer service workers that negotiations were stalled due to union negotiators’ refusal to budge on outsourcing. District President Mike Klemm told IAM members, “United management’s refusal to provide acceptable job security and wage rates for IAM-represented workers is unacceptable and disgraceful,” said Klemm. “IAM members at United Airlines have spoken loudly and clearly that the issues of wages and job security are paramount to any acceptable tentative agreement.”

Related

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Winpisinger Center Announces Inaugural Education Conference

Winpisinger Center Announces Inaugural Education Conference

Winpisinger Center Announces Inaugural Education Conference

GoIAM.org

The Winpisinger Center is excited to announce the call for the inaugural IAM Education Conference, to be held Sunday, March 26 through Friday, March 31, 2023, at the William W. Winpisinger Education and Technology Center in Hollywood, MD. 

The conference will provide an opportunity for IAM educators at all levels to learn and share training techniques, materials, and strategies. Local or District educators, members of education committees, and other Local, District, and Grand Lodge leaders who currently provide training or want to expand training in their lodges are encouraged to attend.

The overall goal of the Education Conference is to advance and strengthen the IAM’s long commitment to building power through member education and training.

Conference topics will include methods and techniques of labor education, organizing, and steward and officer training, among others. Discussions about the labor movement’s role in politics and economic systems are planned to round out the curriculum. The conference will also allow the Winpisinger Center to learn more about the educational goals of the membership so that the curriculum can be refined and expanded to better meet their needs.

The Winpisinger Center has removed the vaccination requirement as of December 1, 2022. Provided that current conditions do not substantially change, proof of vaccination is no longer required from members or guests. Our complete list of COVID protocols can be found on the Winpisinger Center website in the FAQ section.

The deadline for registration is February 15, 2023. Questions about the IAM Education Conference should be directed to Assistant Director Joe Gruber (jgruber@iamaw.org). Questions about registering for the program should be directed to Registrar Tracy Woodburn (twoodburn@iamaw.org).??

Justice Department Expected to Block JetBlue / Spirit Merger

DOJ Expected to Block JetBlue / Sprit MergerIAM141.org March 6, 2023According 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...

Machinists Union emerges as leader in US labor organizing

Machinists Union emerges as leader in US labor organizingGoIAM.org February 15, 2023According 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...

The Resilience of Labor Unions: A Look at the Latest BLS Data

The Resilience of Labor Unions: A Look at the Latest BLS DataIAM141.org January 31, 2023The most recent jobs summary by the Bureau of Labor Statistics shows that union membership in the U.S. decreased from 10.3% in 2021 to 10.1% in 2022. The change marks the lowest...

Broken Promises: Informational Picket Draws Crowds at LAX

Broken Promises: Informational Picket Draws Massive Turnout at LAXIAM141.org January 25, 2023Los Angeles International Airport (LAX) - A coalition of unions representing all unified workers at United Airlines held an informational picket on Wednesday at LAX Airport in...

Related News

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional Coordinator

Kris N Treder Named New District 141 EAP Midwest Regional CoordinatorIAM141.org March 15, 2023IAMAW District President Mike Klemm and EAP Director Bryan Hutchinson have appointed Kris N Treder to serve as the new District 141 Midwest Regional Coordinator. Kris will...

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work Repeal

Michigan Senate Passes Right to Work RepealIAM141.org March 15, 2023On Tuesday, the Michigan Senate passed a bill to revoke the state's right-to-work legislation, which permits employees in unionized positions to collect union-negotiated wages, pensions, and work...

Winpisinger Center Announces Inaugural Education Conference

GoIAM.org

The Winpisinger Center is excited to announce the call for the inaugural IAM Education Conference, to be held Sunday, March 26 through Friday, March 31, 2023, at the William W. Winpisinger Education and Technology Center in Hollywood, MD. 

The conference will provide an opportunity for IAM educators at all levels to learn and share training techniques, materials, and strategies. Local or District educators, members of education committees, and other Local, District, and Grand Lodge leaders who currently provide training or want to expand training in their lodges are encouraged to attend.

The overall goal of the Education Conference is to advance and strengthen the IAM’s long commitment to building power through member education and training. 

Conference topics will include methods and techniques of labor education, organizing, and steward and officer training, among others. Discussions about the labor movement’s role in politics and economic systems are planned to round out the curriculum. The conference will also allow the Winpisinger Center to learn more about the educational goals of the membership so that the curriculum can be refined and expanded to better meet their needs.  

The Winpisinger Center has removed the vaccination requirement as of December 1, 2022. Provided that current conditions do not substantially change, proof of vaccination is no longer required from members or guests. Our complete list of COVID protocols can be found on the Winpisinger Center website in the FAQ section

The deadline for registration is February 15, 2023. Questions about the IAM Education Conference should be directed to Assistant Director Joe Gruber (jgruber@iamaw.org). Questions about registering for the program should be directed to Registrar Tracy Woodburn (twoodburn@iamaw.org).??

Related News