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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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

Lawmakers Backing Union Calls to Prevent Mass Furloughs this Fall

Lawmakers Backing Union Calls to Prevent Mass Furloughs this Fall

A bipartisan group of lawmakers are supporting a plan that would prevent the mass furloughs of tens of thousands of airline workers this fall by extending current payroll assistance into 2021.

Congressman Peter A. DeFazio, who serves as the Chair of the House Committee on Transportation and Infrastructure, circulated a letter to several key legislators last week, seeking support for an extension of the $32 billion Payroll Support Program. The program allowed airlines access to billions of dollars in aid and loans in exchange for keeping employees on the payroll. Unions such as the International Association of Machinists and Aerospace Workers have strongly pushed for such an extension, in order to prevent mass furloughs of airline workers this fall.

About 950,000 aviation sector workers received funding from the program, which covered the costs of their paychecks in the absence of airline profits caused by the pandemic. The program is due to run out on October 1.

Major airlines such as United and American are warning that they will eliminate an estimated 60,000 positions within hours of the expiration of the program. Non-union positions at airlines, including management and administrative positions, and non-union ramp and ticket counter agents have already been the targets of job and hour cuts. Delta and JetBlue have already cut thousands of workers despite having accepted payroll assistance money that they promised to spend on wages. United cut thousands of non-union administrative positions after also slashing severance pay. Court action by non-union managers has yet to scale back  losses.

The letter, sent to lawmakers from both parties, calls for an extension of the Payroll Support Program, which would prevent mass furloughs and layoffs until at least March 2021. In addition to House Transportation and Infrastructure Chairman Peter A. DeFazio, (D-Ore.), the letter was co-signed by Subcommittee on Aviation Chairman Rick Larsen, (D-Wash). It has won the support of Republican Members of the Transportation Committee, Rep. Rodney Davis (R-Ill.), and John Katko (R-NY).

Other lawmakers supporting the extension include Reps. Sharice Davids, D-Kan., Karen Bass, D-Calif., and Brian Fitzpatrick, R-Pa.

IAMAW General Vice President, Sito Pantoja and other labor leaders signed a joint letter calling for a renewal of the Paycheck Support Program earlier this summer. That letter read, in part, “Aviation workers account for 5 percent of the nation’s GDP. Should October 1 arrive without extending the PSP grant job program mass layoffs are inevitable, as airline executives have acknowledged. Hundreds of thousands of workers will lose their jobs and health insurance—not only in aviation but across our entire economy.”

“Further, the industry would lose a large portion of the experienced and credentialed workforce that will be critical to bringing the sector and the broader economy back to prosperity once the COVID-19 crisis is over. Airline industry employment cannot simply be put back together overnight, and mass layoffs will do great damage to the sector, with potentially irrevocable consequences for Members of the International Association of Machinists and Aerospace Workers Union have banded together into a group called the Machinists Non-Partisan Political League (IAM MNPL) to call for legislation that would help airline workers and passengers. The group is asking airline workers to contact their lawmakers and ask them to support an extension of the Payroll Support Program and prevent mass furloughs starting October 1.

“We need this bill. This is a pro-airline paycheck bill,” said Dave Roderick, MNPL District 141 Legislative Director. “The Paycheck Support Program will help frontline airline workers weather this storm. We need everyone out supporting this.”

Airline workers who want to send a letter right now may do so HERE.

Airlines Carry Half a Million Passengers in One Day For First Time Since March

Airlines Carry Half a Million Passengers in One Day For First Time Since March

More than half a million air travelers passed through TSA checkpoints on Thursday, the highest number since mid-March. The Transportation and Security Administration (TSA) reported 502,209 screenings at US airports.

Airlines hit the milestone as over 400,000 passengers took to the skies on three separate days in the preceding week, in the clearest sign yet that air travel is beginning to slowly recover. 

While this number is less than a quarter of what is normal for this time of year, it represents a marked improvement over the lowest point on April 14, when only 87,534 travelers were screened at TSA checkpoints.  

The airline and travel industries are facing a perfect storm of suppressed demand because of COVID-related restrictions on in-person gatherings, high unemployment, and a negative feedback loop, where airlines cannot serve cities without higher levels of customer demand. 

To attract more passengers, airlines have aggressively cut fares and fees. These moves have brought in more travelers, but have also reduced revenue.  The addition of thousands of new passengers willing to fly brings airlines closer to financially breaking even. 

Airlines are growing again, slowly.

Despite the hardships, airline stocks are on the rebound, and insiders expect the industry might reach passenger loads as high as one million travelers a day by the end of July.

In a press release earlier this month, American Airlines announced it was planning to increase flight activity to 55% of normal capacity in July. The carrier added it is planning to increase its lucrative international routes back to 20% of 2019 levels.

United’s plans for July include restoring non-stop service in over 140 domestic routes and the airline will add flights to Europe and several cities in Asia, along with destinations in Latin America and the Caribbean. 

Hawaiian Airlines suspended most inter-island flights and has operated just one daily flight to Los Angeles since March 26 when Hawaii state officials instituted a mandatory 14-day quarantine for arriving passengers. The airline is planning to increase flight capacity by 18% when the quarantine mandate for inter-island travel is lifted on June 16. The quarantine for all passengers arriving from out-of-state will be in effect through July 31.  

Spirit Airlines is expected to triple the number of flights it operates at its home base in Fort Lauderdale (FLL). They expect to operate 70% of their schedule in July and are going ahead with plans to expand international destinations.

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All this is great news for anxious airline employees whose jobs are secure until September 30 thanks to payroll protection funding allocated by the CARES Act. Every airline is planning to have a much smaller workforce after that date due to uncertainty about whether the number of coronavirus cases can be contained until there is an effective vaccine or treatment, which is expected to take a year, possibly longer. Hundreds of airline employees have already taken some type of voluntary unpaid leave of absence, and the companies are unveiling a variety of early retirement programs. 

The Summer 2020 travel season will be very different for passengers and airline employees, but the industry as a whole hopes the recovery will be better and faster than forecasts show. 

 

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What do YOU Think?

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.

    RELATED ARTICLES

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?

 

IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

Sisters and Brothers,

Working almost around the clock since Monday, the leadership of the House of Representatives and the US Senate engaged in negotiations to produce a historic $2 trillion stimulus bill that provides significant relief to our nation’s health care and transportation workers.

The Senate voted 96-0 last night to adopt the bi-partisan agreement, and it now moves to the House, where it will be introduced by Speaker Pelosi tomorrow and it is expected to pass.

Your actions since the beginning of this crisis, and your quick mobilization this week to contact elected officials in Washington made the difference for every working person in our country. Thanks to you, we are more certain of our future.

 

Once it becomes law, the CARE Act will secure the airline industry and our jobs for the next 6 months as we recover from the COVID-19 pandemic, and will provide loan guarantees to rebuild our nation’s aviation infrastructure for the long term.

 

Key highlights for airline relief include:

 

  • $25 Billion in grants to airlines for payroll assistance. Before Labor’s input, the bill only had a loan program. These grants are EXCLUSIVELY for the continuation of payment of employee wages, salaries and benefits. Before Labor’s input, this provision did not exist. 
  • No condition to open Collective Bargaining Agreements and enter concessionary  negotiations to receive grants or loans. Before Labor’s input, the Treasury Secretary had the power to impose unlimited conditions for receiving federal funds. Your calls helped us close this major loophole.                                                                                                                  
  • As a condition to receive federal grant funds, a carrier must refrain from conducting involuntary furloughs until September 30, 2020. Before Labor’s input, this important provision did not exist.
  • Prohibition on stock buybacks and dividend payments until September 30, 2021, and limits on executive compensation and “golden parachutes.” Neither of these requirements existed before our Labor negotiators insisted on them.

I also want to remind our Brothers and Sisters at American Airlines that the ratification vote for the Joint Collective Bargaining Agreement will close tonight at 8:00 Eastern Standard Time. You can find information at the Association Website if you have questions or are having difficulty voting. Please take a few minutes to make your voice heard.

Thank you again for your dedication and professionalism. In these most difficult circumstances, you are showing up every day to get our customers where they need to go. We are not out of the woods yet, by a long shot, but if we continue to speak up, show up, and take care of ourselves and each other, we will overcome this crisis.

Please make sure you take time to unwind, and try to get enough rest. Our EAP Representatives are always available at https://iam141.org/employee-assistance-program/

In Solidarity, 

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