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.”

 

TAKE ACTION! 

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

Machinists, Aviation Unions Commend Bipartisan Push for Airline Worker Payroll Support Program Extension

Machinists, Aviation Unions Commend Bipartisan Push for Airline Worker Payroll Support Program Extension

The IAM along with other aviation unions are lauding 223 bipartisan members of Congress for calling for an extension of the CARES Act Payroll Support Program (PSP) through March 31, 2021.

The program, which allocated grants to commercial airlines and airline contractors for the exclusive purpose of keeping employees on payroll with wages and benefits, is set to expire September 30, 2020.

House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-OR) led the letter to congressional leadership.

 “The IAM thanks the 223 members of Congress for swiftly responding to the airline industry’s call for an extension of the Payroll Support Program grants,” said IAM Transportation General Vice President Sito Pantoja. “The continuation of this program is vital to protecting the livelihoods of thousands of Machinists come October 1. The IAM will continue to lead the fight on Capitol Hill to ensure our members’ futures.”

With the resurgence of COVID-19 in several states across the country and a vaccine for the virus yet to be developed, passenger demand for air travel will not recover before the PSP expires. Without an extension of the PSP before then, hundreds of thousands of airline workers could be furloughed on October 1.

 As a response to the worst financial crisis in U.S. airline industry history brought on by the coronavirus pandemic, U.S. airlines received $50 billion under the March 2020 CARES Act, with $25 billion in direct grants to be utilized exclusively for the continuation of airline workers’ pay, benefits, and employment.

 

Letter Urging Extension of Airline Aid to Prevent Furloughs Has a Majority of Support in Congress

Letter Urging Extension of Airline Aid to Prevent Furloughs Has a Majority of Support in Congress

More than 200 members of Congress have signed a letter supporting a union-backed plan that would prevent mass airline furloughs this fall. 

The letter, written by the Chair of the House Committee on Transportation and Infrastructure, Representative Peter DeFazio (D-OR), asks lawmakers to support the extension of the Payroll Support Program, a provision within the CARES Act that provides much-needed help to airlines in exchange for a moratorium on furloughs and layoffs. If approved, the six-month extension would protect airline jobs until March 2021. 

This month, United and American Airlines notified employees and lawmakers of plans to reduce their workforces by as much as 60,000 total employees on October 1, when the current PSP assistance will expire. The industry is expected to shed nearly one million jobs overall, beginning on October 1st, or immediately after the Payroll Support Program ends. 

In early May, District 141 of the International Association of Machinists and Aerospace Workers sued United, which stopped the airline from furloughing thousands of union members to part-time status. Company executives were able to furlough management and staff, however, since they are not represented by a union. Managers and administrative workers at the airline have been unsuccessful at reversing furloughs through individual motions in court. 

The PSP extension is also supported by every major airline union, including the IAMAW, which led this joint effort to lobby members of Congress across ideological and party lines. If adopted, the amount of aid each airline would receive would likely be based on that carrier’s third-quarter payroll expenses in 2019.

“This extension will not hurt the airlines financially or make it any more likely that they would need to cut more workers in March,” said IAMAW District 141 Legislative Director Dave Roderick. “All it will do is provide help to airlines so they can cover labor costs for a few more months while our nation deals with the coronavirus pandemic,” he said. “If scientists can develop a treatment or vaccine in that time, air travel could improve to the point that furloughs are no longer necessary. That’s what we’re hoping for.” 

IAMAW District 141 President Mike Klemm reminded union members working at airlines to stay aggressive in their efforts to protect their jobs while underscoring the very real threat. “We must not underestimate the task before us,” he said. “We are facing very long odds. But, we’re not beat yet; we can still fight, and as long as that remains the case, we can still win.” In an interview with the  NBC-Affiliate KPRC Channel 2 in Houston, TX, Klemm encouraged every airline employee to contact their elected representatives and push for an extension of the Payroll Support Program. He stressed the importance of asking for Congressional support for the program, even among those airline workers not impacted directly by furloughs. “Unless we can get this extension, people will be out of work, and they will lose their medical benefits,” he said, adding that this will probably be the worst financial quarter in the history of United Airlines.

The letter supporting the extension of aid to airlines gathered 223 signatures when it closed on Monday, July 27th, representing a clear majority of members of the House of Representatives. Typically, letters like this are used to determine how much political will there is behind a given measure. The letter does not carry the force of law and does not legally obligate those who signed it to vote for a final bill. Nevertheless, with the proposal gaining so much bipartisan support in such a short time, it seems likely that an extension of aid to airlines, if included in a future bill, will not be controversial or find much opposition from lawmakers. 

While the Machinists Union is focused on a legislative solution to mass unemployment caused by the pandemic, the threat of furloughs remains very real. IAMAW District President Mike Klemm recently forged an agreement with United executives that will provide partial pay and vacation accruals, medical and dental coverage at active rates, and additional placement opportunities for many of the members who may end up on furlough lists this fall. The agreement also expands recall rights and adds millions of dollars in value to union members. IAM-represented employees at United Airlines who are interested in learning more about the Letter of Agreement with United are encouraged to contact their local Grievance Committee.

The ramifications of the coronavirus pandemic on the global airline industry cannot be overstated. Facing historically low demand for air travel, carriers are being forced to shrink to control costs, losing skilled labor in the process, while the world waits for researchers to produce a vaccine and effective treatment for COVID-19. This research and development process is estimated to last at least another year. 

Since March, Congress has enacted several pieces of legislation designed to mitigate the economic effects of the pandemic. The Payroll Support Program stands out as an example of a very effective job protection program and is credited with saving the livelihoods of over one million airline workers. With coronavirus cases spiking in some areas of the United States and no recovery in sight, airline workers are relying on the renewal of this vital program to support their families and help maintain the health of their communities. Members of the Machinists Union, Transportation Territory, and District 141 will continue working with Senators and Senate leadership to make the PSP a part of any new coronavirus relief legislation.  

“The IAM thanks the 223 members of Congress for swiftly responding to the airline industry’s call for an extension of the Payroll Support Program grants,” said IAM Transportation General Vice President Sito Pantoja. “The continuation of this program is vital to protecting the livelihoods of thousands of Machinists come October 1. The IAM will continue to lead the fight on Capitol Hill to ensure our members’ futures.”

Did your Congressional Representative sign on to support airline workers? CLICK HERE to read the letter and the names of supporting Members of Congress

 

Video Report: Machinists & Aerospace Union Legislative Action

Video Report: Machinists & Aerospace Union Legislative Action

IAMAW District 141 Video Report: Legislative Action to Prevent Airline Furloughs

IAMAW District 141 Legislative Director David Roderick Discusses Legislative Efforts to Extend the CARES Act Furlough Protections

This week’s 141 report is about Legislative action and what members should do to protect transportation Jobs. IAM 141 Director of Legislation Dave Roderick joins the conversation with host Dave Lehive.

Airlines such as American and United have promised to furlough more than 60,000 airline jobs within hours of the expiration of the CARES Act on October 1. However, Congress can extend the provision of the CARES Act that prevents furloughs.

How You Can Help Save Hundreds of Thousands of Airline Jobs

In March, as U.S. COVID-19 cases began rising exponentially, Congress rose to the occasion by enacting the CARES Act to provide assistance to tens of millions of Americans who found their financial security, if not their health, directly imperiled by the pandemic.

Among other things, the CARES Act created the Payroll Support Program (PSP), under which the Treasury Secretary issued $32 billion in grants to airlines and their contractors exclusively to keep their workers on the payroll through September 30, 2020.

But while time marches on, so does the pandemic, Airline workers are facing the worst crisis by far in the industry’s history. Last Wednesday, a major airline put 36,000 workers across the country on notice that they could be furloughed on or after October 1. Other carriers have issued and will issue similar notices.

Please ask your member of Congress to join House Transportation and Infrastructure Chairman Peter DeFazio (D-OR) on a bipartisan letter to House and Senate Leadership, urging them to extend the PSP authorities in the CARES Act through March 31, 2021, and save hundreds of thousands of frontline airline workers’ jobs.

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