Machinists Union to Delta and JetBlue: You Are Not Above the Law

Machinists Union to Delta and JetBlue: You Are Not Above the Law

May 21, 2020 | Airlines, COVID, Featured, Featured News, Front Page, Home, Home, MNPL, United | 0 comments

WASHINGTON, May 21, 2020 — The International Association of Machinists and Aerospace Workers (IAM) today reiterated its demand that Delta Air Lines and JetBlue Airways restore workers’ pay and benefits. Delta and JetBlue combined have accepted approximately $6.5 billion under the CARES Act in taxpayer-funded airline bailout money intended to maintain workers’ jobs, pay and benefits until at least Sept. 30, 2020.
Earlier this month, the IAM filed a federal lawsuit against United Airlines after the carrier announced similar plans to reduce all full-time ground workers’ hours, which would have reduced their pay and benefits. United then reversed course and suspended its plan.
“Delta and JetBlue may not have reduced hourly pay rates, but they did reduce weekly, monthly and yearly pay rates, just as United tried to do,” said IAM General Vice President Sito Pantoja. “The undeniable result is workers are involuntarily taking home less money to support their families. A pay cut is a pay cut.”
Both Delta and JetBlue applied for and received taxpayer funds under the Payroll Support Program component of the CARES Act, which required airlines to maintain workers’ jobs, pay and benefits as a condition of taking the funds.
In letters to the CEOs of Delta and JetBlue, 13 Senators led by Elizabeth Warren (D-MA) wrote, “Your workers supported relief for airlines on the condition that their jobs, pay, and benefits would be protected. On April 23, the International Association of Machinists and Aerospace Workers wrote you a letter opposing your mandatory time off policy, and noting that, ‘The IAM, along with the all the other AFL-CIO affiliated transportation unions, and Delta JetBlue workers, fought for the federal stimulus to protect airline workers and save the airline industry from the ravages of the novel coronavirus pandemic,’ but that your company is ‘using that good faith support of airline workers around the country and at every carrier to [undermine the interest of your own workforces].’”
“We called on Delta and JetBlue to reverse course over three weeks ago and they have thumbed their noses at their employees, Congress, and American taxpayers,” continued Pantoja. “Delta and JetBlue are not above the law and should immediately restore their workers’ pay and benefits as required under the CARES Act.”
A Slow but Steady Airline Recovery is Happening

A Slow but Steady Airline Recovery is Happening

May 20, 2020 | Airlines, American, COVID, Featured, Featured News, Front Page, Home, Home, MNPL, Uncategorized, United | 1 comment

Shares of several airlines have seen a sharp increase in value over the past week, as more travelers begin a slow return, prompting carriers to add more routes and flights to their schedules. While overall demand remains at critical levels, we now have the first clear evidence that the airline industry is beginning to heal from the COVID pandemic. 

In March, Congress approved $50 Billion in aid to airlines, to preserve the highly-trained (and difficult to replace) commercial aviation workforce. Congress also hoped to protect the larger civil aviation networks that provide life-sustaining economic connections throughout the American economy. 

All major airlines have warned that absent another round of help from Congress, America will have a much smaller capacity for air transport and travel. Further, if the direst warnings coming from industry insiders are borne out, the American economy could lose more than a third of the entire civil aviation workforce in the space of just a few weeks starting in October.

Such a massive reduction in jobs would not only cripple any recovery this fall but would also have catastrophic ripple effects throughout the rest of the economy, as businesses that depend on airlines and air shipping lose access to critical parts of their business.

Last week, the industry got a few hopeful signs that air travel would return. United, American, and Delta are filling planes, and are considering adding back flights. Currently, airlines are only operating at certain times of the day, in schedules called “banks.” United and American have both reported that they are bringing back a few banks in select hubs that were stopped due to low demand. The latest round of inevitable social media outrage saw shocked Tweets revealing images of airplanes full of passengers. This may have horrified the Twittersphere, but it was cause for celebration for everyone that depends on air travel. Figuring out how to handle too many passengers is a good problem for airlines to have right now.

Along with passengers, investors are also starting to come back.

Shares of United Airlines Holdings Inc. were up 2% in premarket trading on Tuesday, extending a larger 21% rally for the week. The posting represents the largest gains since the COVID pandemic began hitting airlines two months ago.

United reported modest improvement and reduced cancellations during the second quarter, improvements that the company expects to continue through July.

American Airlines experienced a brief 9.2% surge last week, led by upbeat new data from TSA that indicates an increase in travel demand. That report detailed an uptick in passengers overall, showing an average of 205,010 passengers a day going through TSA security checkpoints. This is the fourth straight week that the agency reported an increase.

Overall air traffic is down more than 91% from last year, according to the TSA reports.

The largest transportation and aerospace union in the US is the International Association of Machinists and Aerospace Workers, which includes tens of thousands of airline personnel. IAMAW District President Mike Klemm warned the 38,000 members of District 141 that investor support and passenger demand might not return fast enough to prevent job losses in October.

“To be perfectly clear, if demand for air travel does not rebound before September 30, 2020, there likely will be furloughs at every single US-based airline,” Klemm said while promising that the union would prevent involuntary furloughs that violate union contracts and the terms of the CARES Act. IAMAW ramp and customer service workers successfully fought back a plan by United to force furloughs after accepting $5 billion in taxpayer money intended to prevent job losses. 

The union is also proposing several cost-cutting measures to United, including ways to incentivize early retirement through medical bridges. These voluntary measures, along with increased demand for air travel, are welcome signs. 

However, IAMAW District Legislative Director Dave Roderick is also suggesting that the union stay in constant contact with lawmakers. “We need to stay in the conversation,” Roderick said. “We need to make sure that our members of Congress understand the facts from the union perspective, which is the side that clocks in and out every day to put food on the table. We can’t afford to be passive at this moment. We need to stay engaged, and do whatever we can to impress on lawmakers the importance of passing another assistance package before October,” Roderick said.

 

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The Time to Prepare is Now

The Time to Prepare is Now

May 19, 2020 | American, COVID, Featured, Featured News, Front Page, Home, Home, Uncategorized, United | 2 comments

May 19, 2020

This communication will discuss continuing developments at United Airlines, however, I urge all District Lodge 141 members to read this update. 

Regrettably, United Airlines and District 141 have disagreed vehemently on how to handle the steep decline in demand for air travel due to the coronavirus pandemic. On May 1, 2020, United Airlines announced an involuntary furlough of approximately 14,000 full-time fleet service and customer service employees, which would have caused a pay and benefits cut, and also multiple violations of our contracts.

As you know, United management reversed course after DL 141 filed a lawsuit in federal court affirming that the forced reductions were both a violation of the CARES Act and our collective bargaining agreements. I want to be crystal clear: The May 1st Greg Hart and Kate Gebo plan to involuntarily furlough every full-time employee to part-time WAS NOT allowable under our collective bargaining agreements. And, it WILL NOT be allowable at any future date. If Mr. Hart and Ms. Gebo attempt this ill-advised action again, you can count on IAMAW District 141 to fight it with every available resource our union possesses.

Over the past couple of weeks, United has resorted to coordinated scare tactics and misinformation to get as many IAM-represented workers as possible to take a voluntary COLA. I informed United management numerous times to stop threatening IAM members with illegal and non-contractual involuntary furloughs. Finally, last week at a virtual town hall, SVP of Airport Operations, Jon Roitman, stated there will be no involuntary furloughs through September 30, 2020. We’ve said all along that this is something United management could not do. 

We fully understand that we need our carriers to be successful for everyone to maintain their ability to put a roof over their head and food on their families’ table. District 141 stands ready to engage with United to develop voluntary programs to achieve cost savings and to put together a long-term plan that benefits employees and our airline. Since our lawsuit was withdrawn, United management has not engaged with District 141. United management should understand that by working with us, we can devise creative ways to help the carrier and, at the same time, care for United employees who have turned this airline around and who are bravely serving our country every single day by providing essential services.

To be perfectly clear, if demand for air travel does not rebound before September 30, 2020, there likely will be furloughs at every single US-based airline. 

The number of laid-off employees will be determined by the demand for air travel, and also by the level of participation in voluntary COLA and other separation programs. I sincerely ask that you prepare for a potential furlough in October. Please hold off on buying any new big-ticket items, such as a car or house. I hope you will take every step you can to help save money for yourself and your family. It is very rare to have five to six months to prepare for a furlough, so I hope everyone will use this time to take the necessary precautionary steps.

Please know that the IAM is fully behind you and we will do everything possible to defend ALL IAM members and our families at our airlines during this time.

God bless and stay safe, 

Mike Klemm

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

 

 

 

Please print and post on all IAMAW bulletin boards.

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United Sued Again for Furloughs After Taking CARES Act Billions Intended to Prevent Cuts to Jobs, Pay

United Sued Again for Furloughs After Taking CARES Act Billions Intended to Prevent Cuts to Jobs, Pay

May 18, 2020 | COVID, Front Page, United | 1 comment

A Maintenance supervisor at United Airlines is suing the airline for its plan to furlough thousands of administrative employees later this month.

According to the complaint, Chicago-based supervisor Kenneth England was told that he must take 20 unpaid days off, and face other furloughs, in violation of what United executives agreed to when they accepted $5 billion in CARES Act funding. The lawsuit has the potential to become a “class action” suit that could include more than 10,000 United managers and administrative staff members. 

Soon after the COVID-19 pandemic forced the wide-spread grounding of US airlines, United asked for an estimated $5 Billion in assistance from taxpayers as part of an overall $50 Billion program directed at airlines.

As part of the deal, United executives agreed that the carrier “would not require any employee to take a temporary suspension or unpaid leave for any reason, it would not reduce the pay rate of any employee earning a salary or wages, and it would not reduce the benefits of any employee, until September 30, 2020” according to the filing.

Two weeks after agreeing to the terms of the CARES Act, United executives issued a notice signed by Executive Vice President Greg Hart, notifying 15,000 unionized ramp and customer service workers, and 10,000 non-union administrative staff members that they would have their pay and benefits cut. In the announcement, Greg Hart told the union that the move was in “full compliance” with their collective bargaining agreement and the CARES Act. The union took the company to court, and Hart announced the next day that the airline was withdrawing its plan to furlough the union members. United ramp and customer service workers are part of the International Association of Machinists and Aerospace Workers.

But, the company went ahead with similar plans to furlough “non-operational” administrative staff who do not belong to any union. 

The CARES Act provides payroll assistance to air carriers, as long as those air carriers pledge to actually use the money to pay their employees, not for executive pet projects.

From the complaint:
“Subtitle B, Part (a) of the CARES Act, titled “Financial Assistance for Employees Wages, Salaries, and Benefits,” provides: “Notwithstanding any other provision of law, to preserve aviation jobs and compensate air carrier industry workers, the Secretary shall provide financial assistance that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits to (1) passenger air carriers, in an aggregate amount up to $25,000,000,000. . . ” § 4112(a). (Emphasis added.)

The CARES Act specified certain assurances an air carrier must make to be eligible for financial assistance: “To be eligible for financial assistance under this subtitle, an air carrier or contractor shall enter into an agreement with the Secretary, or otherwise certify in such form and manner as the Secretary shall prescribe, that the air carrier or contractor shall (1) refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020.” § 4114(a)

Guidelines issued by the U.S. Treasury Department mandated that “to be eligible to receive payments,” an applicant must agree to “use such payments exclusively for the continuation of employee wages, salaries, and benefits” and “refrain from conducting involuntary layoffs or furloughs, or reducing pay rates and benefits, of employees of the applicant. . . ””

In a statement, VP Hart said that executives were in “full compliance” with the CARES Act because they were not cutting the pay rates of employees. The plan reduces the amount of take-home pay that each employee is eligible for by using furloughs instead of cuts to their hourly wages… and is, therefore, in “full compliance” with the law, according to Hart.

A long and growing list of lawmakers involved in writing and passing the CARES Act have publicly stated that cutting pay and benefits (however those cuts are done) is not in compliance with the CARES Act. 

United has much lower labor costs than it had in 2019, which is what the CARES Act funding was based on. In addition to the furloughs, thousands of United agents have left the company, many of them retiring early. Many thousands more have taken voluntary leaves. United is allowed to keep the CARES Act money that would have gone to cover these payroll expenses.

Payroll assistance to airlines is critical to the economy of the US. Airline workers undergo years of training, and cannot be easily replaced. Moreover, protecting air service throughout the country is vital, especially during the pandemic. The fast delivery of medical professionals and supplies cannot be overstated and is only possible through airlines. The CARES Act was intended to protect this key part of American economic infrastructure – not executive agendas.

What do YOU Think?

Can a class action lawsuit save management and administrative jobs at United?

Why or why not? Let us know in the comments section! 

Ranking Republican on House Ways and Means Committee: Airline Furloughs Under CARES Act “Inappropriate.”

Ranking Republican on House Ways and Means Committee: Airline Furloughs Under CARES Act “Inappropriate.”

May 15, 2020 | COVID, Featured, Featured News, Front Page, United | 2 comments

Representative Kevin Brady, the ranking Republican on the powerful House Ways and Means Committee, has issued a statement calling furloughs by airlines like United, Delta, and JetBlue, “Inappropriate.”

The statement came after a union member at United Airlines contacted his office about the matter.

Congressman Brady is one of the architects of the CARES Act, which was designed to keep the American workforce intact as the coronavirus pandemic decimated critical industries and infrastructures, including commercial aviation. In the letter, Rep. Brady says that “after accepting funds provided by the CARES Act–forced furloughs are inappropriate.”

Brady sits on the House Ways and Means Committee, which creates all laws dealing with taxation and government spending. The committee was a key player in the development of the CARES Act and will play a similarly huge role in any future aid packages that benefit airlines.

“To offer support to distressed industries, I helped pass the CARES Act,” Congressman Brady says in the letter. “Which provided for loans, not bailouts for major industries such as the airline industry. This bill enabled direct lending of the following: $50 billion for passenger airlines, $8 billion for cargo airlines, and $17 billion for businesses critical to “maintaining national security.” The CARES Act is focused on protecting workers and preventing rewarding executives. In doing so, the CARES Act prevents furloughs through September 30th, 2020. Employee and executive total compensation may not exceed $425,000, stock buybacks are prohibited during the duration of the loan, and borrowers must maintain existing payroll as of March 13th, 2020.”

United executives continue to claim that furloughs somehow do not violate the CARES Act, despite repeated admonitions from law’s authors and sponsors. In a memo to employees, United Executive Vice President Greg Hart claimed the furloughs are “in full compliance” with the Act. In response, the International Association of Machinists and Aerospace Workers union filed a lawsuit in federal court and prepared to file a blizzard of grievances to stop the plan. United called off the furloughs for union members the very next day but kept in place similar plans to furlough administrative employees.

Furloughs would help executives find money at the airline for pet projects, by diverting CARES Act funding away from front-line workers. Executives are attempting to accept the billions in payroll assistance while simultaneously cutting payroll costs, and diverting the difference at their will. Thousands of union members at the airline have already accepted company-offered voluntary leave packages. Besides, thousands more in the union are asking for simple policy adjustments that would make it possible for them to retire early, such as medical bridge coverage guarantees. One quarter of airport employees currently on leaves of absence and off payroll have saved the company millions of dollars, without controversy.  

A bipartisan, bicameral group of lawmakers have called on United to stop these furloughs, and have reaffirmed that CARES Act funding was intended for front-line workers.

 

Please print and post on all IAMAW bulletin boards.

See Congressman Brady’s Letter Here >

Thank Congressman Brady

Lawmakers need to know that we appreciate their help.

If you are represented in Congress by Congressman Kevin Brady, please drop by and say thanks. 

8th District Constituents Click Here

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United in Remembrance: EWR Honors Friendships, Lives Together

United in Remembrance: EWR Honors Friendships, Lives Together

May 14, 2020 | Community Service Page, COVID, Featured, Featured News, Front Page, Home, Home, Uncategorized | 0 comments

United in Remembrance

Members of Local 914 in Newark remember lives lost, join to lift spirits.

Machinists Union members joined co-workers from United and other airport employees in front of Terminal C at Newark Liberty Airport on Wednesday morning to remember 12 United workers who have died from complications due to COVID-19.

The event was organized by Nereida Perez, a United Customer Service Agent and member of IAM Local Lodge 914. In front of an arrangement of 12 white balloons with the name of every Newark-based United worker who lost their battle with the disease, several speakers called for unity and hope during times of trial. IAM member Gyana Garcia reminded event participants that “life, friendships and heart is what matters,” and to celebrate the lives of co-workers who are “soaring as high as our planes will go.” 

 

New York and New Jersey lead the nation in confirmed cases of coronavirus and deaths, and the Newark area remains under strict restrictions to combat the outbreak. Officers from the Port Authority Police closed the upper-level road leading to the terminal to allow attendees to maintain physical distancing during the ceremony. Some of those who attended are on voluntary leaves of absence, but traveled to the airport to share memories and support brothers and sisters who remain at work.

 

The ceremony honored the lives of 11 employees from ramp, customer service, catering ops, tech ops, administrative and one retired customer service worker. Local 914 member Lance Williams led the crowd in a rendition of “Amazing Grace,” and Tyrone Coley announced to the crowd he was honored to sing at the event just before he began his retirement. 

 

Nereida was grateful to co-workers and supervisors for their help planning the event and was pleased with the strong response and solidarity. “We needed to do this to help each other,” she said. 

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