Senator to United: Put CARES Act Money in Paychecks, or Give it Back

Senator to United: Put CARES Act Money in Paychecks, or Give it Back

May 3, 2020 | COVID, Featured, Front Page, Home, Home, MNPL, Uncategorized, United | 6 comments

Senator Josh Hawley issued a warning to United Airlines: use the $5 Billion of CARES Act money to keep your workforce intact… or give the money back.

In a series of Tweets, the Republican Senator from Missouri explained how he was approached by several IAMAW members as he was traveling back to Washington, DC. 

“I’m at the airport, flying back to DC, and multiple @United employees have told me the company is cutting their hours, pay & benefits immediately. This is AFTER United took billions in bailout money that was earmarked for workers. This had better not be true.”

Sadly, it is. United Airlines announced plans to slash the pay and benefits of over 15,000 full-time ramp and customer service workers, only days after accepting a huge share of the $50 billion allocated to airlines in the CARES Act. With public demand for air travel decimated since the onset of the coronavirus pandemic, Congress approved several aid programs designed to preserve the American aviation network and its highly skilled workforce. They recognized how important it is to be ready to rebuild quickly once the pandemic has subsided. Congress and the president made a choice to provide funding to safeguard civil aviation in the US, rather than try to recreate it later. 

“Airline workers are highly skilled, and irreplaceable without significant training,” said Mike Klemm, President and Directing General Chair of District 141 of the International Association of Machinists and Aerospace Workers. The IAMAW is the largest union of airline and aerospace workers in the world. “These women and men must pass rigorous training and safety requirements when hired, and must maintain and update their skills and clearances regularly. This process requires a significant investment from the air carriers and workers. You can’t just hire people who can operate on and around aircraft and passengers on a whim. Qualified candidates must be identified, trained, and cultivated over the years to build up expertise. The skill and dedication of airline workers are the reasons our aviation system is as safe and resilient as it is.” 

Congress agreed and set aside a huge chunk of the $2 Trillion CARES Act to safeguard the civil aviation infrastructure in the US and the women and men who operate it, throughout the COVID Pandemic. “The costs of rebuilding our transportation networks will be much higher than to simply unpause it,” Klemm said. 

Lawmakers who drafted and passed the CARES Act and its sister bill, the Paycheck Protection Act, have learned about United’s actions over the weekend. They are not happy. And, they are increasingly threatening to take action.

 

 

 

The outrage over United executives’ actions is bipartisan. Representatives from both major parties and both federal legislative bodies have sent statements of support for Machinists Union members who will be hurt by this decision.

Last week, US Representative Sheila Jackson-Lee wrote a letter to IAMAW District President Mike Klemm where she clearly stated the CARES Act money was not meant to buy new aircraft, buy back stocks, pay out bonuses or for any other purpose than to be distributed directly to United workers impacted by COVID-19. “ “It was not the intent of Congress for this program to be used as an economic bail-out, but to support the hard-working men and women who are the focus of United Airlines,” she said. 

IAMAW District 141 Legislative Director Dave Roderick credited the grassroots work of union members for getting the attention of lawmakers such as Jackson-Lee and Hawley. But, he stressed there is much more work to be done. “Our union is ramp and customer service agents – and a lot of other airline workers who love our jobs, and we want to keep them,” Roderick said. “Keeping our jobs right now means getting to work. It means calling our representatives, and making sure they understand just how shady United management is being. It means making sure that lawmakers know that we love our company, and the work we do. It means asking them to insist that company executives keep their word.”

Read the official letter from Senator Josh Hawley to United executives:

 

 

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Congresswoman Sheila Jackson Lee has come out in support of the airline workers at United Airlines targeted for furloughs by United Airlines after the carrier accepted billions in taxpayer-funded support to avoid job cuts. 

“The CARES Act and the Paycheck Protection Program was intended to make employees whole during this devastating time due to COVID-19,” Representative Sheila Jackson-Lee (TX-18) said in a letter to IAMAW District 141, President Mike Klemm. “It was not the intent of Congress for this program to be used as an economic bail-out, but to support the hard-working men and women who are the focus of United Airlines,” she said. 

Congresswoman Sheila Jackson Lee issued a formal letter to the union last week. 

United Airlines accepted an estimated $5 billion in payroll support funds through the CARES Act, part of a $50 billion aid package for airlines. In accepting the money, United executives pledged to postpone job cuts until after September. The goal was to keep skilled employees on payroll while preparing for harder times if a recovery wasn’t underway by the Fall season. It also allowed Congress to review and consider additional aid for the nation’s transportation network.

However, the day after accepting the funding, United announced it would need to cut payroll expenses. This week, the company plans to announce massive job reductions, including a plan to furlough all fleet and customer service agents to part-time, or by 45% of their total hours. 

“Airlines need to seek congressional approval to secure new routes, tax subsidies, and other important items,” said IAMAW District 141 Legislative Director Dave Roderick. “Airlines such as United will need constant support from lawmakers, for help with everything. Fuel, environmental regulations, noise abatement programs, seat sizes, safety rules… airlines need to stay mindful of how they appear to Congress and lawmakers,” Roderick continued. 

“Flagrantly laughing in the face of Congress – taking the money and running like this… it’s not a good look for a company that needs Congress as much as United does. United executives may think it’s smart business to snatch the aid from employees, but it’s not.” Roderick said. “Within days these same executives will be right back in front of lawmakers like Jackson-Lee, hat in hand, asking for help with something. These unlawful actions on United’s part will be remembered by taxpayers and lawmakers next time they need something.”

“If United goes ahead with furloughs in violation of the CARES Act or because they found some clever loophole, they will have a much harder time convincing Congress to give them more taxpayer help from now on.” 

This is the second time Congresswoman Sheila Jackson-Lee intercedes to assist airline workers with issues related to the coronavirus pandemic. In March, she played a key role in reducing dangerous overcrowding in employee parking buses at Houston Bush Intercontinental Airport (IAH). She also appealed directly to city officials in Houston for free and reduced-price airport parking. This effort reduced the number of bus riders by about 1000 employees per day, achieving better social distancing for workers. 

“We appreciate the help of Congresswoman Jackson-Lee,” said IAMAW District 141 President Mike Klemm. “She has been a great friend of our union and airline workers for years. She fights every day to make air travel safer and more reliable, and we respect that.” Jackson-Lee represents the 18th Congressional District in Texas, which includes the area surrounding Houston’s IAH airport. 

Klemm also praised the steadfast lobbying work of union members, saying, “This is what solidarity looks like.”

“Despite United Airlines’ blatant disrespect for their employees, I want to thank our essential front-line members,” Klemm added. “These are the people who risk their health to reunite families and keep healthcare workers and critical supplies moving during these challenging times. While our country thanks and salutes our essential workers, United Airlines shows it has a different philosophy on how to treat theirs. Those with power should keep their word to the essential and front-line workers of this country.” 

You can read the letter that Representative Sheila Jackson Lee sent to District 141 PDGC Mike Klemm HERE>

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“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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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.

 

VIDEO: Make a Face Cover With a Uniform Scarf

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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!

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.”

Mar 26, 2020 | Airlines, American, COVID, EAP, Featured, Front Page, Hawaiian, Home, Home, Philippine, Safety, Spirit, Uncategorized, United | 0 comments

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

 

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