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Millionaire CEO Calls Workers “Arrogant,” Calls for Higher Unemployment to Teach Them a Lesson

September 15, 2023

Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge.

“We need to see unemployment rise. Unemployment has to jump 40, 50% in my view. We need to see pain in the economy. We need to remind people that they work for the employer, not the other way around,” Gurner said at The Australian Financial Review Property Summit.

Such a jump in unemployment would raise joblessness in the US from about 3.8% to 5.5%.

Gurner believes workers became too “arrogant” and empowered during the pandemic when labor shortages gave them more leverage to demand better pay and working conditions. He wants to see that change.

“There’s been a systematic change where employees feel the employer is extremely lucky to have them, as opposed to the other way around,” he said. “We’ve got to kill that attitude and that has to come through hurting the economy.”

On Friday, he attempted to walk back the comments somewhat, posting “I want to be clear: I do appreciate that when someone loses their job it has a profound impact on them and their families.”

The controversial CEO is infamous for previously claiming that young people can’t afford homes because they frivolously spend money on things like avocado toast and coffee.

“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” Gurner told “60 Minutes” in 2017. “We’re at a point now where the expectations of younger people are very, very high… They want to eat out every day, they want travel to Europe every year.”

Now, Gurner believes inflicting economic pain on workers through mass unemployment is the solution to what he sees as a problematic shift in power dynamics between employers and employees.

“I think the problem that we’ve had is that people decided they didn’t really want to work so much anymore through COVID,” he said this week. “They have been paid a lot to do not too much in the last few years, and we need to see that change.”

Gurner’s controversial comments will likely provoke a backlash from workers’ rights advocates who argue employees deserve fair treatment and compensation from their employers. But the real estate mogul appears intent on turning back the clock to a time when employers had more power over their workforce.

Last year, S&P 500 CEOs earned an average of 272 times more than their workers, according to the latest Executive Paywatch report from the AFL-CIO. Those CEOs received $16.7 million in total compensation in 2022, on average, while US workers’ real hourly wages dropped for the second straight year after adjusting for inflation, the report found.

According to a ranking by the Australian Financial Review, Garner has a net worth of around $917 million.

Millennials face unique economic challenges that have made it difficult to achieve financial stability. Stagnating wages and rising housing costs have made it harder for millennials to afford major life milestones like home ownership. At the same time, the cost of higher education has skyrocketed, leaving many graduates burdened with massive student loan debt that they will still be paying off when it is time to retire. On top of that, millennials entered the workforce during an era of increased automation, job displacement, and recessions that limited opportunities early in their careers. Most millennials are also unlikely to have access to the pensions and strong retirement benefits that previous generations relied on for security in their later years.

Adding to the challenges, most Millenials have no access to labor unions and, therefore, will lack adequate wages and working conditions and will likely retire without a pension.

Add fuel, food, and healthcare costs that are steadily rising; millennials struggle with economic pressures on all fronts. Unless serious policy changes are made, millennials will remain at a financial disadvantage compared to prior generations.

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U.S. Department of Transportation Slams American Airlines With Record Fines for Tarmac Delays

August 29, 2023

WASHINGTON – Today, the U.S. Department of Transportation charged American Airlines a $4.1 million fine for breaking the law by repeatedly keeping passengers trapped on the runway for over three hours.

The Department of Transportation requires airlines to return planes to the gate and let passengers off whenever a domestic flight sits on the tarmac for three hours.

The DOT said the worst delays happened at Dallas Fort Worth International Airport, American Airlines’ biggest hub. Additional delays occurred at airports in Houston, San Antonio, and near Washington, D.C. In an August 2020 incident, 105 passengers were stuck on the runway in San Antonio for six grueling hours – enough time to fly from Texas to California. In at least one case, passengers trapped in an American Airlines plane were not offered food or water. In all, the suit alleges 5,821 travelers were affected.

“This is the latest action in our continued drive to enforce the rights of airline passengers,” said U.S. Transportation Secretary Pete Buttigieg. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.”

The DOT investigation found that American Airlines violated passenger rights to deplane during lengthy delays at least 43 times from 2018 to 2021. The lawsuit claims that none of the safety or security conditions that could have justified keeping passengers on idle planes were applied to any of the flights mentioned in the complaint.

The $4.1 million penalty is the biggest fine the Department has ever issued for breaking its rule on long tarmac delays. Out of this amount, $2.05 million will be waived since the airline used that amount to compensate passengers on the delayed flights.

The rule against long delays on the tarmac started during the Obama era. For flights within the U.S., airlines can’t keep passengers on the runway for more than three hours without letting them off the plane. For international flights, the maximum time is four hours.

Earlier this year, the DOT drafted a new rule to make airlines pay for amenities like meals, hotel stays, and rebooking costs when they’re at fault for leaving passengers stranded. Following a two-year effort by the DOT to enhance traveler experience, the top 10 airlines now promise to provide meals and complimentary rebooking on their own airline, with nine also ensuring hotel stays.

Additionally, Transportation Secretary Pete Buttigieg has pressed airlines to ensure families can sit together without extra fees. Before these rules were in place, airlines could charge parents additional to sit with their children. Now, such charges must be disclosed upfront, the first time airfare is presented to the passenger. The notifications also include other charges that airlines had previously buried in the fine print, such as fees for carry-on and checked baggage and cancellation fees. 

American Airlines responded to the sanctions by claiming the delays did not affect that many people. 

“While these delays were the result of exceptional weather events, the flights represent a very small number of the 7.7 million flights during this time period,” said spokeswoman Sarah Jantz in a New York Times article. “We have since apologized to the impacted customers and regret any inconvenience caused.”

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FAA Reauthorization Act Receives Broad Support in House

July 31, 2023

The IAM applauded the passage of the Federal Aviation Administration (FAA) Reauthorization Act of 2023 in the House of Representatives.

This month, the House of Representatives approved the “Securing Growth and Robust Leadership in American Aviation Act” (H.R. 3935). This Act is a bill to renew and modernize the Federal Aviation Administration (FAA) and includes vital provisions that will improve aviation safety for the next five years. The bill received broad support from both political parties, passing the House with a vote of 351 to 69.

The Act still has to pass the Senate before it becomes law. 

Improves Efficiency at the Federal Aviation Administration

The bill aims to improve how the Federal Aviation Administration (FAA) works. The way the FAA currently operates is inadequate for the post-pandemic surge in air travel. The bill will make the FAA more efficient and simplify existing regulations, making air travel faster and more reliable for millions. 

Grows the Aviation Workforce

Commercial aviation has a severe shortage of workers, leading to flight delays, cancellations, and overall poor service for travelers. Staffing shortages are most acute among ground and gate agents, pilots, mechanics, and air traffic controllers. This bill helps solve the problem of inadequate staffing by making it easier for people to start careers in aviation. 

Enhances the Passenger Experience

Thanks to the hard work of airline agents, the aviation system can often function without incident – despite record levels of air travelers straining the system. However, too often, passengers can experience one weak segment of their journey, leading to cascading problems that can ruin the entire trip. This bill will make air travel more reliable for all aspects of air travel. 

Upholds America’s Gold Standard in Safety

America’s aviation system is the safest mode of travel on Earth. But, it must be continually updated and modernized to stay ahead of new and emerging safety concerns. This bill will ensure that American civil aviation is the best in the world by addressing these new threats, including the recent uptick in runway incursions.

The bill will also ensure that foreign air carriers operating in the United States do not undermine labor rights or safety standards, and it will authorize a study to find solutions to improve safety for airline ramp workers. The Machinists Non-Partisan Political League has been fighting for these measures and policy changes for years. 

“We are not just leaders in the aviation industry; we are the guardians of safety, fairness, and respect,” said District President Mike Klemm. “This bill is a significant step forward in protecting those values.”

Mike Klemm is the President of the largest single group of airline workers in the Machinists Union, which, in turn, includes the largest group of unified aviation workers in North America. 

“While the bill, H.R. 3935, does not address all the IAM’s demands in an FAA reauthorization package, it does include several of our requested provisions and will ultimately help improve the safety and working conditions of our air transport members,” wrote Machinists Union International President, Robert Martinez. “This includes improved cabin air quality, robust airplane maintenance standards, and efforts to help thwart the unfortunate string of airline worker assaults and deaths in recent years.”

The Machinists Union joined a coalition of aviation-sector unions led by The Airline Pilots Association (ALPA), opposing raising the retirement age for pilots from 65 to 67 years. The groups argued that creating such a retirement age change would put the U.S. out of compliance with the International Civil Aviation Organization (ICAO), which is included in a spate of international treaties overseen by the United Nations. Existing rules require most pilots to retire at age 65.

“We are pleased that the House has passed this important legislation,” said IAM Air Transport General Vice President Richie Johnsen. Johnsen is head of the largest collection of unified airline workers in the Machinists Union, which includes unified workers at United, American, Hawaiian, and Spirit Airlines. 

“This bill will help ensure that the FAA has the resources to keep our skies safe and IAM air transport members protected from violence and abuse. We continue to stand in solidarity with ALPA to ensure the retirement age for pilots remains at 65. We now look to the Senate to pass this reauthorization package and get it signed into law.”

“This is a major win for us,” said District Legislative Director David Roderick. “But I assure you that our work is far from done,” he said. “This crucial bill is now moving to the Senate. We, at the IAM, remain committed to working with members of the Senate to make certain this vital legislation gets passed. We will not rest until our airline workers reap the benefits they rightly deserve.”

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