IAM 141, United Continue Contract Talks Amid Massive Profit Announcement

IAM 141, United Continue Contract Talks Amid Massive Profit Announcement

IAM 141, United Continue Contract Talks Amid Massive Profit Announcement

24 October 2022

IAM District 141 negotiators and United management met last week in Chicago. We resumed contract talks, which broke off in late July due to United management’s refusal to provide the job security and compensation necessary to move the process forward.

Negotiations focused again on job security. Both sides discussed ways to achieve the industry-best job security United IAM members prioritized. Both sides’ positions are still far apart.

It’s essential to understand the job security and scope proposals we’re making are not revolutionary. Other airlines already have similar language in their collective bargaining agreements. Our proposals are reasonable. United’s refusal to include basic job security provisions disrespects every IAM member at United.

Both sides also discussed the idea of a short, one or two-year extension of the existing Agreement. We repeat; any agreement, of whatever duration, must include the significant improvements in job security and overall compensation that IAM members deserve.

Also during the week, United reported almost a $1 billion net profit for the third quarter on nearly $13 billion in revenue, which is 13 percent higher than the same quarter of 2019, before the pandemic. CEO Kirby cheered and called this past season “by most metrics, the best operational quarter in our history.”

The 25,000 IAM-represented ground workers are the largest part of United’s operation. The mega-profits United is bragging about would not have been possible without our membership. It’s time for CEO Kirby and the rest of United management to put their money where their mouths are and do the right thing. In Solidarity,

Your Negotiating Committee

Olu Ajetomobi
Joe Bartz
Victor Hernandez
Barb Martin
Andrea’ Myers
Terry Stansbury
Faysal Silwany
Erik Stenberg
Sue Weisner

Mike Klemm

President and Directing General Chair,
IAMAW District 141
Recording Secretaries: Please print and post on all Union Bulletin Boards.
IAMAW District 141’s 69th Convention: Racking Up Four Years of Union Wins

IAMAW District 141’s 69th Convention: Racking Up Four Years of Union Wins

The achievements celebrated at the event included union victories spanning the full spectrum of airport workplaces, including gate and ticket counters, ramp and ground personnel, janitors, security guards, and instructors. Photos: Brian Vega, IAMAW 141 Communications Coordinator

IAMAW District 141’s 69th Convention: Racking Up Four Years of Union Wins

IAM141.org
25 September 2022

The 69th Convention of the International Association of Machinists and Aerospace Workers (IAMAW) drew to a close on Thursday, but not before providing an opportunity to recap a long list of remarkable improvements to airline work since the District’s last Convention, held in 2018.

The event drew hundreds of top labor leaders from the airline industry, representing ground, gate, ticket counter, and other airline workers from every major airport in the US.

The achievements celebrated at the event included union victories spanning the full spectrum of airport workplaces, including gate and ticket counters, ramp and ground personnel, janitors, security guards, and instructors.

Highlighting Union Triumphs in Commercial Aviation

The wins included a historic wave of impressive contractual agreements throughout the commercial aviation industry. These included the 2020 negotiation of a first contract at SM Cargo, which was overwhelmingly ratified by the newly organized membership. Another agreement, this one for janitorial workers at Flagship, was approved unanimously by every union member at the company. 

Union Members also overwhelmingly ratified a 2021 agreement at Spirit, the second union contract for fleet service workers at the airline.

“We were extremely proud of the overwhelmingly ratified agreement we negotiated at Spirit Airlines,” said District President Mike Klemm, who led the Convention. “This was only the second contract we negotiated with the carrier, and we all know how challenging those first contracts are to accept for newly organized groups,” he told the delegation. “Our members received wage increases that are, on average, 30% higher than they were previously,” he said to applause. 

“Lead premium increases mean more opportunities for double-time pay, we established new training positions which allow our members to earn even more income from the work they currently already do,” he continued. “But, this Agreement also brings paid vacations to part-time agents. And, for some of those folks, this will be the first real paid vacation they’ve ever known,” Klemm said of the Spirit Agreement. “For those of us at legacy carriers, paid vacations are a normal part of life, but these folks were able to negotiate the first-ever paid vacations, making history at Spirit Airlines.”

 

Last Tuesday, Union Reps attended a formal signing ceremony for the most-recently ratified Agreement at Hawaiian Airlines, which was secured earlier this year. That Agreement will provide significantly improved wage increases and seniority protections for part-timers. Part-timers will also gain access to family health care for the first time in the carriers’ existence. It will also provide better flexibility with day and shift trades and impose financial penalties when the company intrudes on workers’ personal and family time with mandatory overtime.

At United, Calls For Union Members to Email Company Executives

But the main topic at the Convention centered around the contentious negotiations with United Airlines. Although the carrier had committed to producing a solid tentative agreement for union members to vote on by August 1, the talks broke down after weeks of company stonewalling.

 

“The days of Oscar Munoz are over,” President Klemm said of the negotiations. “Oscar was a people person. He cared about people, and he cared about the airline. And, we rewarded that commitment. After that Agreement was reached, United Airlines experienced the best financial success in the history of the carrier,” he went on. “And we showed up. During the pandemic, we couldn’t work from home, or from behind a desk. We were there for this airline when it mattered most. We were there when the carrier went to lawmakers for emergency funds to get through the months when travel was nearly impossible. We produced thousands of calls and visits to lawmakers, securing the money the company needed to survive,” he said.

“The thanks we get for that sacrifice is a slap in the face offer so insulting to this membership that talks broke down through the entire month of August.”

“They’re saying that our members don’t really care about job security, and pay raises that wouldn’t even buy half a gallon of gas are ok,” he said.

“All we’re asking for is that, if we are willing to do right by this company, then this company should do right by us. That’s all we’re asking. If we show up to work, do our jobs well, and honor our commitments to this company, then United should be willing to say, in writing, that they will not arbitrarily decide one day to eliminate or outsource our jobs,” he said to roars of applause from the assembled delegates. 

President Klemm also told the Convention that the recent solidarity actions around the nation have been effective. “They got flustered,” he said. “They didn’t expect to see all the “Contract Now’ signs. They didn’t expect to have their inboxes flooded with emails. When they saw that outpouring of solidarity, they got rattled.” Klemm encouraged the union to step up its already impressive email campaign, as company executives can’t miss personal messages in their inboxes. “If you’ve already written to Kirby, do it again,” he said. “Do it every week. If you know someone that normally sits quietly and lets things play out, encourage them not to sit this one out,” he said. “I have seen how those emails have made the company rethink their position with my own eyes.”

 

For pointers, Klemm told the delegates that personal stories are more effective than insults when writing to Kirby and other company executives. “Tell them how inflation is affecting your family. Tell them how important your job is to you,” Klemm said. “We think that 60% of our members at United have yet to send an email to the company. That means we have a lot more in the tank. If they’re already getting nervous, imagine what can happen if thousands more of us join in.”

JetBlue Files For Representation

The Convention is coming to a close as JetBlue organizing begins a new phase; 3000 Ground Operations Crewmembers successfully filed for a union representation vote at the airline, a first for ground crews. On Friday, the Machinists Union announced that it would file for a union representation vote with the National Mediation Board, the Federal agency that oversees labor law for airlines. The efforts to organize ground operations at JetBlue are led by inside committees staffed by current JetBlue workers. Sensing the campaign was reaching a critical stage, these committees opted to skip the Convention and continue their organizing work.

Even without its entire cadre of organizers, union growth was prominent at the Convention. Speaking at the event was Amazon Labor Union activist Tristan Lion Dutchin, whose efforts to organize the first-ever union at the shipping giant led to his unlawful termination from the Staten Island Facility where he had been employed. His story earned international headlines and helped secure an eventual union win at Amazon. Machinist Union delegates at the Convention, moved by his story, raised a little over $2,000, which they awarded to Dutchin in honor of his dedication to the cause of union organizing.

This was just one of the rounds of donations delegates raised for important charities. Guide Dogs of America, which provides service dogs to veterans, children with autism, and visually impaired persons at no cost, was also championed at the Convention. In all, delegates raised approximately $17,000 for charitable organizations and causes.

Held in Orlando, Florida, from September 20-22, the 69th Convention of Machinists Union District 141 drew 224 delegates from Local Lodges around the nation. Also attending were Machinists Union senior leaders, including General Vice President Richard Johnsen. Johnsen is spearheading a range of innovative new programs at the union, including strengthening alliances with other labor organizations, ensuring that new hires are connected to the larger union, and creating a movement-driven mission for labor. The comments fit into the larger vision that Johnsen has painted for unionism as a vital social cause – and more than a set of membership services.

“All around the nation, people are starting to see the value of their labor and wondering where they fit in. We can be that for them; their work has incredible value to unions and working people. At the end of the day, companies only value money. We, as working people, can be so much more. We can help each other spend more time with our families, work in safer environments, and earn better livelihoods in more rewarding careers. We can do that by acting in union, and bringing the power of collective action to bear for working Americans.”

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FAREWELL, OLD FRIEND!
Tony D bid a heartfelt farewell to the many whose lives he’s touched over his long career as District Safety Director today. After an illustrious tenure, he is finally taking a much-deserved retirement. His dedicated service to Machinists Union members was honored with a touching tribute, read formally before the Convention delegates, along with hugs and well-wishes. Congratulations on a truly remarkable career, Brother Tony.

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Justice at JetBlue requires Just Cause at JetBlue.

“That’s evidence that they are not focused on profitability. They are just focused on flying the airplane somewhere and having the government subsidize it.” -United CEO Scott Kirby.

“Those airlines aren’t airlines. They’re international branding vehicles for their countries.” -Former United CEO Oscar Munoz.

After years of highlighting the unfair business practices of state-owned enterprises (SOE) such as Emirates, Airlines, and other Middle East carriers, United’s announcement of a new codeshare agreement demands scrutiny.

To protect the jobs of U.S. airline workers, there must be continued financial transparency and improved labor standards that ensure fairness is maintained in all Open Skies and codeshare agreements.

Since the beginning of its existence, Emirates Airlines has been sustained by massive government subsidies, unrelated to the global pandemic, used to expand far beyond what market forces could ever support. Their growth, including the Dubai-Athens-Newark service and Milan service, was only possible because of the enormous Emirati funding the airline received. These subsidies put U.S. airlines at a tremendous economic disadvantage and threaten U.S. airline workers’ jobs. American workers can compete with any foreign airline when on a level playing field. We cannot compete against entire countries.

Although the United States and United Arab Emirates signed an agreement in 2018 regarding these issues, the fact remains that there are currently no independent labor unions in the United Arab Emirates. This has led to a systemic, unacceptable assault on airline workers’ rights, with alarming accounts of unfair labor practices and intimidation by employers.

United Airlines employees and union leadership will be watching closely to ensure our scope provisions are rigorously followed and demand the highest labor standards are adhered to across all partnerships. We will act swiftly if needed to protect our long-term career security.

In Unity,

Ken Diaz MEC President AFA-UAL

Richard Johnsen General V/P IAM-UAL

Mike Hamilton Master Chair ALPA-UAL

Craig Symons President PAFCA-UAL

Joe Ferreira Dir. Airline Div. IBT-UAL

 

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At United, Greed Leads the Way

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9 August 2022

As you are aware, we did not reach an expedited agreement on a new contract with United management by our self-imposed deadline of August 1, 2022. In the July 18, 2022 negotiations update, I stated that “unless United management changes course, reworks its current proposals, and offers IAM members at United a fair contract that recognizes our value to our airline, it is highly unlikely that we can reach an agreement in the expedited process.”

During the week of July 25, 2022, your Negotiations Committee met and discussed the path forward. After that, our Assistant General Chairpersons fanned out across the system to conduct station visits and update the membership on negotiations. That same week, United management gave us a modified proposal. That proposal was as insulting as their initial “comprehensive framework. Which, as I stated previously, would provide less job security than we have today and wage rates that were wholly unacceptable based on IAM members’ surveys and priorities.

Today, the IAM 141 Negotiations Committee forwarded to United management a set of very fair proposals that, if agreed to, would recognize the value of IAM members to United Airlines’ success. Remember, the Company just recorded record revenue in the second quarter and a return to robust profitability. Once we receive their response, we will report back to you.

Given the Company’s dismissive attitude and outright refusal to accept the new realities in the airline industry regarding wages, job security, scope of work, and other critical issues, I am pessimistic that an agreement can be reached anytime soon.

Because of the dedication, sacrifice, and professionalism of the women and men of United Airlines, our airline produced record revenue for the second quarter and a massive profit of over $300 million. Yet, United management simply says no when it comes to providing us reasonable job security that currently exists at other carriers and wage rates befitting the new airline industry realities. I want to thank our front-line members for their solidarity actions around the nation. Your continued support is absolutely necessary for the success of this effort.

It appears at Scott Kirby’s United, Greed Leads the Way.

Your Negotiating Committee

Olu Ajetomobi
Joe Bartz
Victor Hernandez
Barb Martin
Andrea’ Myers
Terry Stansbury
Faysal Silwany
Erik Stenberg
Sue Weisner

Mike Klemm

President and Directing General Chair,

IAMAW District 141

Recording Secretaries: Please print and post on all Union Bulletin Boards.

Spirit / JetBlue Merger Statement

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Spirit / JetBlue Merger Statement

28 July 2022

To our Sisters and Brothers of Spirit Airlines,

This morning, JetBlue Airways and Spirit Airlines announced plans to merge to create the nation’s fifth largest carrier. Spirit Airlines shareholders yesterday rejected Frontier Airlines’ bid to merge and cleared the way for JetBlue’s $3.8 billion all-cash offer to combine the two carriers. The deal still needs the required regulatory approval. The airlines expect to conclude the regulatory process and hope to close the transaction no later than the first half of 2024.

Regardless of if and when this merger gets finalized, it’s vital that our IAM members at Spirit Airlines know that we will ensure your contract is enforced during this process and your rights will be defended as stated under Article 1, paragraph G of your collective bargaining agreement, which states;

  1. In the event of any merger of the Company with another airline, acquisition of the Company by another airlines, or acquisition by the Company of another airline, which affects the seniority rights of the employees covered by this Agreement, the parties will make their best efforts to integrate the seniority lists in a fair and equitable manner including, where applicable, agreement through collective bargaining between the carriers and the representatives of the employee groups affected. In the event of failure to agree, the dispute shall be resolved in accordance with Sections 2, 3, and 13 of the Allegheny-Mohawk Labor Protective Provisions.
  2. Upon announcement of any transaction which is intended to result in the consolidation of the Company with another air carrier, the parties will meet promptly to negotiate an appropriate fence agreement and to implement a seniority integration process as described above. These discussions shall not be a prerequisite for closing or completing a transaction under this Article.

It’s important that you know nothing will change under your contract until the federal government approves the merger and all potential representation disputes are concluded.

Furthermore, IAM District Lodge 141 is very close to filing a representation election for JetBlue’s ramp/fleet service workers. Any help you can provide us in gaining the needed authorization cards can only help to ensure that this proposed merger would give everyone a seat at the table and offer you the peace of mind you deserve.

In Solidarity,

Mike Klemm

President and Directing General Chair,

IAMAW District 141

Recording Secretaries: Please print and post on all Union Bulletin Boards.

“CONTRACT NOW!” Union Solidarity Actions Around the Nation As Talks Stall

“CONTRACT NOW!” Union Solidarity Actions Around the Nation As Talks Stall

CONTRACT NOW!: Machinists Union Members at Sister San Francisco Local Lodges 1781 and 1782 Member Appreciation Solidarity Day pose with Contract Now! signs. Talks with United Airlines have stalled over the issue of job security, according to union negotiators. In response, union members are renewing commitments to each other – and building a rock-solid front from which to face whatever challenges management tries to throw into the fray. Photos: Brian Vega, IAMAW 141 Communications Coordinator

“CONTRACT NOW” Wave of Union Solidarity Actions Around the Country as Contract Talks Stall

Organizing
25 July 2022

Brandishing signs reading “CONTRACT NOW,” thousands of Machinists Union members at United Airlines are storming break rooms, social media, and rallies to demand that United Airlines does not gain the ability to outsource their work to low-wage vendors in the next contract.

Workers along the West Coast gathered this week in San Francisco for a series of solidarity actions, including a member appreciation event that drew hundreds of union members. The gathering concluded a week that included rallies at San Francisco International Airport (SFO) that featured speeches by union leaders, including many directly involved in contract talks with the airline. 

“Cost of living is going up, health care is going up, everything is getting more expensive,” said Troy Rivera, an Assistant General Chairman with the Machinists, to the assembled United Airlines agents. “United thinks there are no big issues here,” he said. “And, that’s just not the case. We do have issues. Our job security is an issue – in fact, it was the number one concern that our members have asked for leading up to these negotiations.” 

“They are basically offering job security that is worse than what we have now,” said Assistant General Chairman Joe Bartz, a member of the panel of union members currently negotiating with the company. “And, that is absolutely ridiculous after what we’ve gone through over the last few years, with the pandemic.”

Bartz also took issue with the often disrespectful tone adopted by company negotiators, who, behind closed doors, seem to devalue the critical role front-line workers play at the airline. “In negotiations, members of the negotiating team told us that United Airlines Store Keepers (at United) were nothing more than Walmart stock clerks, and why should we pay them any more?” The comment drew loud boos from union members and prompted several to take to social media to point out that Walmart stock clerks are underpaid and regularly exploited. “If United wants to start acting like Walmart or Dollar General, we might be (expletive removed),” a poster on Facebook said in a comment that has since been deleted.

The rally at SFO Airport was only one of several such demonstrations. On Saturday, San Francisco-based union members launched a “Member Appreciation Day” event that drew several hundred airline workers. According to event organizers, the day was intended to strengthen the bonds between union members and their community. Organizers stressed that relationship-building exercises like membership appreciation events and community outreach could only help union members during contract negotiations. 

“This took a lot of work,” said event organizer Noelle Sakamoto. “There was a whole team of us that brought this together,” she said. The group involved Local Lodge Presidents from two Local Lodges, Tony Parker from 1781 and Wendy Goodell from Local 1782, both helped lead the work. The twice-a-month meetings began in January of 2022 and included help from Assistant General Chairs Olu Ajetomobi and Troy Rivera, both of whom represent airline workers along the West Coast. Chris Lusk, a District Vice-President and Local 1781 Committeeman also offered help and advice.

“They want us to trust them when they say they won’t outsource our work, and that’s just not good enough. We want it in black and white, in writing, in a legally-binding contract.”

-IAMAW District President, Mike Klemm

Area businesses invited to the event lined the parking lot of Locals 1781 and 1782 with a colorful assortment of booths, face painting, music, souvenirs, and food and drink options… all of which combined with the cool San Franciscan summer weather to create a festive atmosphere for attendees. 

But, behind the warm hugs and smiling joviality was a persistent undercurrent of steely determination, focused on the behavior of United Airlines at the negotiating table. 

In a July 18 letter to the membership, Machinists District President Mike Klemm, who is leading the negotiations, pointedly told members that talks had stalled over job security. 

“Unfortunately, United management decided to propose a job security package that is not competitive with United’s industry peers and does not provide the job security and scope of work protections IAM members deserve,” Klemm said in the statement. Of the solidarity events springing up at airports around the nation, Klemm said, “We need to take every opportunity to remind each other that we are all in this together and that we have each other’s backs.”

“They want us to trust them when they say that they will not outsource our work, and that’s just not good enough. We want it in black and white, in writing, in a legally-binding contract.”

 

The head of the Machinists Union Airline Transportation Division, Richard Johnsen, underscored the sentiments to West Coast union members over the weekend. “I want to thank everyone who put in so much hard work to create this solidarity event,” said Johnsen. “We need to do this. We need to be together and rock-solid if we’re going to take on this company and win,” he said. Johnsen called on United to, “return to the bargaining table and give Machinist Union Members a fair contract that protects our jobs and shows the respect that we deserve,” to loud cheers and chants of “Contract Now!”

One factor making United’s efforts so frustrating to employees is the fact that the airline has, as of July, returned to profitability. According to the Union’s District President, a large factor in bringing the carrier back into the black is the hard work of front-line union members. 

“United Airlines has announced record revenue and a return to profitability,” Klemm said in a joint statement signed by union negotiators.  “The very reason this is possible is because of United Airlines employees. Not management. It’s the workers who make this airline fly. It was us who made tens of thousands of calls to elected officials to ensure our airline received the needed aid to survive through the worst downturn in airline industry. It wasn’t because of CEO Kirby and the other airline industry executives. How did CEO Kirby reward our loyalty? He devised a scheme to violate our contracts and force all IAM-represented workers to part-time status. And, now this.” 

United’s announcement that it has returned to profitability owes its existence to the pandemic relief funding, which was awarded following a massive show of support from union members.

Another factor helping to inflate profits, according to industry analysts, is the fact that United is increasingly willing to raise ticket prices. This tactic mirrors the company ethic of bleeding its workers dry and seems to apply to passengers, too. Airfares at United have spiked a staggering 20% since 2019. At the same time, United has slashed seat capacity and used pandemic aid funding to encourage mass employee retirements, leading to crowded planes and chronic staffing shortages.

United earned more than $430 million in the Second Quarter but is struggling to keep pace with profits at competitor airlines, such as American. 

 

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