“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

May 1, 2020 | Featured, Front Page, Home, Home, Uncategorized, United | 26 comments

Incoming United CEO Kirby Initiates Forced Layoffs, Violates Contracts While Taking Billions of Taxpayer-Funded Airline Bailout Money.

This morning, United Airlines announced it will cut the pay and benefits of all full-time IAM members at United Airlines. Not only is this action by United’s incoming CEO Scott Kirby, EVP Human Resources, Kate Gebo, and their leadership team cruel and selfish, it is quite possibly illegal.  

The IAM is considering all legal options, including a lawsuit against United to stop this action and protect our membership. The decision by Mr. Kirby and Ms. Gebo, who have lined their pockets with record bonus payments, to upend the lives of tens of thousands of committed United Airlines workers who have turned this airline around through past sacrifices and a commitment to OUR airline is unconscionable. We recognize the need for airlines to save money in these unprecedented times, but these cuts are not about saving money.

The carrier has refused to engage with the IAM in cost saving discussions that would provide the carrier with the same amount of financial relief as they claim the involuntary furloughs will without gutting our contracts or the CARES Act. Over the past two weeks, the IAM presented a myriad of voluntary programs and options to provide the company tens of millions of dollars of savings. This is IN ADDITION to approximately $30 plus million per month they are already saving through current voluntary leaves of absence (COLA) and reductions in hours for part-time workers. The IAM’s proposals added to current savings equal over $200 MILLION over the next five months. The company rejected every one of our ideas and presented none, except for cutting the hours of full-time workers. It’s apparent their goal is not to save money, but to hurt their employees and their families. 

What is truly outrageous is that United has received $5 billion in taxpayer funded airline bailout money under the CARES Act and has cut IAM members’ pay and benefits, something the CARES Act clearly forbids. United plans to have approximately $9.5 billion in cash at the end of the second quarter. They will report at the end of the third quarter upwards of $5.5 billion and a greatly reduced cash burn rate for the fourth quarter. This action is NOT necessary and is being taken because of United management’s laziness to find workable solutions centered on caring for their workers. 

The IAM believes that involuntarily furloughing all full-time workers is not in compliance with the CARES Act or our legal contracts at United. Downgrading all full-time employees to part-time status requires a forced furlough and reduces pay and benefits.   

That is why we are fighting.  

Remember, our pension, 401K contributions, vacation, sick time, occupational illness time and many other benefits are tied to the hours we work. With the number of voluntary COLAs the company has been able to get so far— over 23,000 employees in May alone—the $5 billion received in airline bailout funds will likely be more than they need to cover payroll through September. This is almost certainly the case now with forced furloughs of all full-time workers.

When a merchant takes someone’s money and does not provide the product or service they paid for, that customer will not return. As air travel rebounds, United’s passengers will know that the airline misappropriated the tax money intended to preserve workers’ pay and benefits and will bring their business to responsible carriers. United’s short-term solution will cause long-term problems for the carrier and its shareholders.

Every IAM member, whether employed by United or not, should be outraged and let their voices be heard. It’s very obvious that United’s Core 4 corporate philosophy is a fraud. It’s apparent that United’s new philosophy is Greed, Cruelty and Dishonesty. Deserving of a special shout out for deception is EVP and COO Greg Hart’s email that falsely claims a “more favorable” agreement was available. Nothing could be further from the truth. United management, nor the Union, can violate the law, IAM members’ contracts or IAM members’ rights. Greg never took part in any conversation and, frankly, doesn’t know what he’s talking about. 

All union members will be advised of further developments as they occur. 

 

Mike Klemm,

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

 

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    Related Airline News

New COVID-19 Safety Measures at United

New COVID-19 Safety Measures at United

Apr 15, 2020 | COVID, Featured, Front Page, Home, Home, Organizing, Safety, Safety, United | 0 comments

District 141 has just been informed that United Airlines, in an effort to reduce the risk of possible transmission of any virus to our agents who interact with customers, will be installing personal barriers made of Plexiglas in the areas where our agents are most vulnerable. 

The following test locations have been chosen based on flight schedule:  IAD, ORD, SFO, LAX, DFW, PDX, and MCO. Twenty (20) podium guards and two (2) gate reader guards will be overnighted to each location and installed tomorrow. DEN will have its guards in place today, as they don’t need to be shipped.

Once in place, the company will immediately look for feedback on the effectiveness of the guards. When a decision is reached the company will start ordering the guards for all remaining stations. They will advise us of the rollout schedule as the guards are being manufactured. The company said they would like a test phase that enables them to get good feedback while still being able to expedite the process of installation.

The company has begun temperature checks for employees prior to starting their shift. EWR, LGA, MSY, IAH and SFO Base have started. Other locations will be coming online as they get the procedures and staff in place to ensure everyone’s safety. You will be receiving information from your specific locations station leadership prior to it being implemented.  When the District is informed of stations beginning more checks we will post it.

 

Information for American Airlines Fleet re: 2020 Agreement

Information for American Airlines Fleet re: 2020 Agreement

Apr 7, 2020 | American, The Association | 0 comments

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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VIDEO: Make a Face Cover With a Uniform Scarf

VIDEO: Make a Face Cover With a Uniform Scarf

Apr 6, 2020 | Community Service, Community Service Page, COVID, Featured, Front Page, Home, Home, Safety, Uncategorized, United | 0 comments

CDC recommendations updated to include face coverings.

The Centers for Disease Control continue to study the spread of coronavirus in the United States. Last week, they updated recommendations for people in situations where social distancing can be difficult, such as workplaces like airports or call centers. Wearing a face cover is now encouraged to help slow down the spread of the virus, which can happen even when people are showing no symptoms of the disease. 

Medical grade and one-time-use masks are in short supply and they are urgently needed by healthcare workers. Maintaining a 6-foot distance is still the best way to protect yourself while interacting with others, and using a mask is not a substitute for that practice. The new CDC recommendation however, states that a simple cloth mask is an additional and effective measure. 

Alice Martins from Local 914 in Newark, NJ is working in one of the epicenters of the outbreak of coronavirus. She shared  her video showing how to make a face cover using a United Airlines uniform scarf. All you need is a scarf and two rubber bands – no sewing required! Thank you, Alice!  

What measures are you taking in your city to protect workers from the spread of coronavirus? Let us know in the comments below!

Information for American Airlines Fleet re: 2020 Agreement

Association Bulletin – Implementation Agreement Reached

Mar 27, 2020 | American, Featured, Front Page, Home, Home, The Association | 0 comments

March 27, 2020

Implementation Agreement Reached

The Association and American Airlines have reached an agreement covering the implementation of certain elements of the JCBAs. The following items cover pay, retirement, and certain benefits that are most important to our membership:

1. All JCBA wage rates will be effective the first Monday following the date of ratification (“DOR”), inclusive of

  • Chart Rate
  • All Premiums
  • Skill Pay
  • Fuel Tank Entry (which will be paid as a temporary upgrade)
  • MLS Driver Premium (which will be paid as a temporary upgrade unless a separate MLS Driver bid area is established)
  • Taxi & Run-up Pay (which will be paid as a temporary upgrade unless a separate Taxi & Run-up bid area is established)
  • Shift Differential (Shift differential for Legacy American TWU employees will be programmed at JCBA rates following ratification but will continue to be based on shift definitions under the 2012 AA/TWU CBAs until those employees are moved to the Work Brain system. JCBA shift definitions will apply to all covered employees thereafter.)

2. The Signing Bonus Payment agreed to by the parties shall be paid no later than 60-days after the DOR to all active employees as of DOR. Employees on an approved leave of absence or not working due to OJI shall receive the Signing Bonus within 45-days of returning to active status.

3. The Vacation Lump Sum Payment (to eligible employees) agreed to by the parties shall be paid no later than sixty (60) days after DOR.

4.  All other pay elements not provided for in paragraphs 1, 2 or 3 above will be paid, retroactively to the first Monday following the DOR (in a lump sum equivalent), within one-hundred twenty (120) days after DOR, but in no event more than one-hundred (150) days, and thereafter will be paid on a continuing basis as described in the JCBAs.

5. The IAM National Pension Plan contribution rates provided for in Article 30 – Retirement shall be effective no later than May 1, 2020. The employer matching contributions and employer nonelective contributions provided for in Article 30 – Retirement shall be implemented no later than January 1, 2021. For the time period from May 1, 2020, until such time as the employer matching contributions and employer non-elective contributions provided for in Article 30 – Retirement can be made effective for employees covered by the JCBAs, but no later than January 1, 2021, the following will apply:a. TWU Designated Employees will receive contributions to the 401(k) Plan in the amount of 9%; no employee contribution will be required; and will not receive any employer matching contributions to the 401(k) Plan.

b. IAM Designated Employees will receive employer contributions to the 401(k) Plan in the amount of 4%; no employee contribution will be required; and will not receive any employer matching contributions to the 401(k) Plan.

c. The employer contributions provided for in paragraphs 5) a. and b. above will be made to employees on a monthly basis and will be made after the last pay period of each month.

For example, contributions for eligible compensation earned in May will be contributed in June. These contributions will be reflected in employees’ Fidelity 401(k) statements but will not appear in the employees’ Company payroll statements.

6. For 2020, profit-sharing for each participant covered by the JCBAs will be calculated on a prorated basis, using the profit-sharing calculation currently in effect for employees represented by the Association up to the DOR and using the profit-sharing calculation provided for under the JCBAs for the remainder of the year.

7. All grievance settlement monies owed to the TWU/IAM Association as a result of joint negotiations shall be paid to the Association within 30 days of receiving payment instructions from the Association, following the DOR.

8. The parties recognize the importance of the seniority provisions and applications of the JCBAs, such as rebids, realignments, shift bids and transfers, reductions in force and agree to preserve and utilize employees’ seniority during the implementation process. The parties also acknowledge the need to combine overtime and field trip call-out procedures into a single system and to allow shift swaps/trades between employees under their respective JCBAs; therefore:a) Local management and Association representatives will work together to implement the overtime process outlined in the respective JCBA as soon as practicable in each location.

b) Field trips will continue to be called out in the same manner as they have been prior to the ratification of the JCBAs until such time that the Company and Association agree to a single system Field Trip call list.

c) Local management and Association representatives will work together to implement the shift swaps/trades as soon as practicable in each location. The Association agrees to work collaboratively in order to assist the Company with the implementation of these JCBA provisions.

9. The M&R International outsourcing provisions shall become effective April 1, 2020, upon which the annual 12-month lookback will be based. The data used to determine the initial International Outsourcing hours measurement to be sent to the Association no later than June 1, 2020.

10. Legacy American TWU employees’ sick bank shall be credited with up to ten (10) days no later than December 31, 2020, based on any ten (10) months in 2020 where at least 80 hours were worked by the respective employee.

11. The payback period for employees who elect to take a ‘loan’ due to the change to pay-in-arrears or bi-weekly pay shall begin no earlier than February 1, 2021. The Company may change employees to pay-in arrears and bi-weekly pay, where applicable, as soon as is practicable.

The impact of the serious COVID-19 pandemic on the operation of the Company has created uncertainty in the ability to predict exact implementation dates for some contractual items the Company is obligated to institute. Therefore, the parties have agreed to meet within 60 days after ratification and on an ongoing basis to reach agreement on any implementation issues that are outstanding after the date of ratification and are not addressed in the Implementation Agreement reached today.

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While we expect to reach mutually agreeable terms that would cover any outstanding implementation issues after the date of ratification, the Association has not waived any of its rights to resolve disputes that may arise, including the grievance procedure.

 

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Information for American Airlines Fleet re: 2020 Agreement

Vote Results: TWU-IAM Ratifies New Contracts at American Airlines!

Mar 27, 2020 | Airlines, American, Featured, Front Page, Home, Home, The Association | 0 comments

The TWU-IAM Association today announced its American Airlines membership overwhelmingly ratified contracts covering more than 30,000 Mechanic & Related (including Maintenance Control Technicians & Maintenance Training Specialists), Fleet Service and Material Logistics Specialists/Stores members.

Percent Voting Yes:

  • Mechanic & Related: 90.94%
  • Fleet Service:        95.45%
  • MLS/Stores:   92.12%

“The resounding approval of these contracts yet again proves that by standing together and demonstrating our solidarity and determination, we are able to achieve contracts our members deserve,” said Association Chair Sito Pantoja and Vice Chair Alex Garcia. “It is that same resolve that will get us through this unprecedented crisis facing our airline, our industry and our country.”

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