Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: “Reducing workers’ hours without their consent reduces workers’ paychecks in the same way that reducing workers’ rate of pay would.”

 

This week, Senator Bob Casey (D-PA) called on Treasury Secretary Steve Mnuchin to issue clear guidance to airlines and industry lobbyists stating that cutting the pay and benefits of airline workers violates the CARES Act, even if those cuts come by way of furloughing full-time workers to part-time. Senator Casey is a member of the Senate Committee on Finance, which played a major role in drafting the bill. 

Senator Casey said the clear intent of the CARES Act, which delivered billions of taxpayer dollars to airlines, was “specifically to protect the jobs and livelihoods of workers in the airline industry,” and that airlines could not reduce the pay of their workers after accepting relief funds.  Further, Senator Casey said in the letter that reducing full-time workers to part-time reduces their pay and benefits, despite leaving pay rates intact. 

“I write to express my concern that multiple air carriers have threatened to or are currently involuntarily reducing the hours of employees despite receiving payroll support under the Coronavirus Aid, Relief and Economic Security (CARES) Act,” Senator Casey said in the letter. “In passing this legislation, Congress made clear its intention that any air carrier receiving assistance must agree to maintain payroll and not cut employee compensation. I urge you to immediately issue guidance that makes clear that unilateral and involuntary reductions in employee hours are prohibited under the CARES Act.” 

Senator Casey also sent letters to the CEOs of United, jetBlue, and Delta, and to Airlines for America, the lead lobbying group for US air carriers, putting industry executives and lobbyists on notice about the importance of following the law and respecting workers.  

A growing number of lawmakers involved in creating the CARES Act have written to the CEOs of major airlines following a scheme by United Airlines executives to take billions in relief funds intended to cover payrolls – and then cut payrolls while keeping the money. United Executive Vice President Greg Hart tried to defend the move and said the furloughs weren’t really pay cuts because pay rates would remain the same. Senator Casey, who has a legislative record promoting economic security for working families, showed little patience for such word games. 

“This is in clear violation of Congress’ intent and should not be undertaken by any air carriers accepting federal assistance,” Senator Casey said. 

“Congress’ intent that air carriers use this assistance to fully protect workers’ compensation and employment was clear,” he wrote. 

IAMAW District Legislative Director David Roderick praised the actions of Senator Casey and other lawmakers who have come forward in defense of working families in the airline industry over the past two months. “Senator Casey is a true friend for airline workers. He’s been a trusted ally and strong voice for airline safety and the fair treatment of airline employees and passengers for years.” 

Read the full statement by Senator Casey Here >>

Do you live in Pennsylvania?

Lawmakers need to know that we appreciate their help. If you are a constituent of Senator Bob Casey, please take a second to let him know that our union values his assist.

    RELATED ARTICLES

What do YOU Think?

Do you feel that furloughs before October 1st are a violation of the CARES Act…

…even if they are only furloughing full-time agents to part-time?

 

Helping Hands June EAP Newsletter

Helping Hands June EAP Newsletter

EAP Peer Coordinators,

Following up on the special editions about the coronavirus in the past few months, this month’s issue focuses on anxiety. Tips about strategies on dealing with stress as we continue to deal with the consequences of the coronavirus are covered on the front page. Some ideas about effective ways of dealing with stress are on the second page. 

 

These are difficult times – it is critical to listen non-judgmentally (as we have learned in EAP classes) and to be there as others need us to be. I am so grateful to have all of you in the field helping others navigate this time. Listening without “fixing” is a powerful tool we have – thank you for being there! 

Helping Hands June Edition

The Employee Assistance Program is a compassionate, confidential, and free service that has helped hundreds of people cope with personal crises.

    Previous 

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.

Rep. Crenshaw: United Must “Live Up to its Obligations”

Rep. Crenshaw: United Must “Live Up to its Obligations”

Another lawmaker has voiced support for the unionized ramp and customer service agents at United Airlines as they continue to push back against proposed furloughs at the airline. This week, Congressman Dan Crenshaw (R-Tx), issued a statement calling on United to “live up to its obligations” and abide by the rules of the CARES Act.

Congressman Dan Crenshaw, who serves the people of the 2nd Congressional District of Texas in the House of Representatives, responded to a constituent who contacted him after United Airlines announced cuts in the hours of work for over 16,000 airport and call center employees. In a letter, Rep. Crenshaw wrote: “I voted for the CARES Act because I understand the importance of sustaining our airline workforce during this difficult time.”

As a member of the House Budget Committee, Rep. Crenshaw helps craft the annual budget resolution which determines funding policies for the federal government. A former United States Navy SEAL and a member of the Republican Party, he was elected to Congress in 2018 on a platform that called for getting the country on a path towards “responsible spending.” In his letter, the congressman emphasized the safeguards Congress put in the CARES Act to ensure the proper use of funds and said, “This bill included accountability measures, and it is important for every entity that receives public funding to live up to its obligations.”

The largest of three major bills from Congress to address the economic impact of the coronavirus pandemic, the CARES Act provided $25 billion in relief funding for airlines to keep employees on the payroll.

Members of Congress like Crenshaw interact with airline employees during their frequent trips between their home districts and Washington, DC. He praised United employees in his letter and wrote, “You have kept our nation running, and it is uplifting to see the dedication on the frontlines.” The congressman pledged to “continue to focus on ensuring funds are spent as intended as the industry recovers and that safety measures are implemented to protect both workers and travelers.”

Do you live in the Houston area?

Lawmakers need to know that we appreciate their help. If you are a constituent of Congressman Dan Crenshaw, please take a second to let him know that our union values his assist.

    RELATED ARTICLES

What do YOU Think?

Lawmakers are calling on airlines to fulfill the obligations they made to taxpayers and employees like us. How would you rate the job your airline has done so far?

 

Who’s Minding the Store?

Who’s Minding the Store?

Congress demands better accountability from the Treasury Department in the administration of airline relief funds from the $2 Trillion CARES Act. 

On May 1st, federal lawmakers began receiving emails and calls from airline employees following United Airlines’ announcement that, despite having received $5 Billion in federal COVID relief aid through the CARES Act, they were involuntarily reducing the scheduled hours of work for over 16,000 airport and call center employees. The response from Congress was swift and bi-partisan. A US Senator and several House representatives sent stern warnings to United’s CEO about possible repercussions if the airline moved ahead with plans to cut paychecks after receiving federal funds intended to protect employee payroll.

After District 141 of the Machinists Union filed a lawsuit in federal court, United reversed that decision but went ahead with a plan to involuntarily furlough up to 30% of their workforce in management and administration. The Senate Minority Leader, Charles Schumer (D-NY), highlighted the oversight of CARES funds in a letter on May 7th to Treasury Secretary Steven Mnuchin. Senator Sherrod Brown (D-OH) and Senator Maria Cantwell (D-WA) co-signed the letter urging Secretary Mnuchin to “issue guidance clarifying that unilateral decisions to reduce workers’ hours, and as a result their pay or benefits, are prohibited activities under the CARES Act.” 

Delta and jetBlue have imposed cuts to the scheduled hours of work of their mostly non-union workforce, which also prompted 13 Senators to send letters to the CEOs of those two carriers. Senator Elizabeth Warren (D-MA) was joined by colleagues writing that “Section 4114 of the CARES Act is intended to protect workers and maintain their pay and benefits.” The Senators acknowledged that United has reversed the decision to cut their employees’ pay and said: “You should do the same.” They are asking jetBlue and Delta executives for an explanation of the process they followed to force the furloughs and to justify their stated position that payroll cuts are in compliance with the law. The Senators are requesting a response from the CEOs by June 3, 2020.

The activism of District 141 members does not only benefit them. “When we advocate for non-union workers at Delta and jetBlue, we raise everyone’s voice,” said Frank Giannola, District 141 Director of Organizing. He added, “The workers who want a union at jetBlue and Delta need us to speak for them too.” Organizers from the IAM are working with activists at jetBlue and Delta and support their rights to organize and form a union.

As they prepare to consider another round of federal aid to address the devastating effects of the coronavirus pandemic, many members of Congress are concerned about the proper administration and oversight of relief funds.

On Tuesday, May 26, Treasury Secretary Steven Mnuchin testified before the Senate’s Banking, Housing, and Urban Affairs Committee. His statements got the attention of Rep. Jan Schakowsky (D-IL), who co-wrote a letter to the Secretary with Rep. ‘Chuy’ Garcia (D-IL) and Rep. Katie Porter (D-CA). In that letter, they ask if the Treasury Department provided any guidance to airlines on the administration of CARES Act funds, and call for more transparency and better oversight for billions of taxpayer dollars. The letter was co-signed by another 71 members of Congress, representing California, Illinois, New Jersey, Massachusetts, New York, Michigan, Ohio, Pennsylvania, Texas, Washington, Florida, Minnesota, Arizona, Maryland, New Hampshire, New Mexico, Rhode Island, Tennessee, Virginia, Wisconsin and the District of Columbia.          

District 141 Legislative Director Dave Roderick lives in Rep. Schackowsky’s district in Chicago and was pleased to see how the grassroots work of so many IAM members earned the support of a large and diverse group of lawmakers. “Both Republicans and Democrats know very well how important reliable air transportation and good union jobs are to our nation’s economy,” he said. “And they also know Machinists Union members vote, so when they hear from us in large numbers, they act.”

A Conversation with EAP Director, Bryan Hutchinson

A Conversation with EAP Director, Bryan Hutchinson

A Conversation with EAP Director, Bryan Hutchinson

IAMAW District 141 Employee Assistance Program Director Bryan Hutchinson sits down with Dave Lehive for a conversation about how the EAP is responding to the COVID-19 crisis.

The District 141 EAP offers free, confidential, and compassionate help to Machinists and Aerospace Union members at times of crisis or when they face personal challenges. The EAP also evaluates treatment options for addiction and mental health issues and helps members prepare for life changes in a positive and healthy way.

Help Can Happen Now

Workers in distress can contact an EAP Representative right now to get connected to professional assistance. Information is available at IAM141.org/141EAP.

If you need emergency help, contact Bryan directly at 303-229-5117.

 

 

     Related Stories

Union Members at American Get $3,000 Bonuses This Week

Union Members at American Get $3,000 Bonuses This Week

Honoring Agreements, Union Members at American Get Bonuses This Week

Bonuses budgeted before the coronavirus pandemic spread widely in the United States are scheduled to go out today and tomorrow to union members in fleet service and aircraft maintenance at American Airlines. (The International Association of Machinists and Aerospace Workers and the Transport Workers Union represent workers at American in an alliance known as “The Association.”)

Qualifying fleet service workers will receive $3,000 signing bonus checks this week. 

To qualify for the payments, every union member must have been an active employee at American as of March 26, 2020. Union members on certain types of company and military leave will get the money when they return to work.

The agreements also call for cash payouts because of improvements in vacation accruals, which will add thousands more in retroactive compensation for some members.

The money will be paid out like regular paychecks. Statements showing the deposits should be visible in bank statements starting today.

The bonuses are part of agreements between American Airlines executives and their unionized fleet service workers, which were ratified by over 90% of eligible voting members of the IAM and TWU Association on March 26th. In a joint statement released after the agreements were reached, Sito Pantoja, Association Chairman, and Alex Garcia, Vice Chairman said: “Together, after more than four years, the terms of these agreements are proof that we took the right path and achieved the best contracts in the airline industry.”

Mike Klemm, President and Directing General Chair of District 141 of the IAM said that given the current status of the airline industry and the bleak forecasts, union members at American would be well-served if they are cautious about how they use their bonus paychecks. Echoing statements he made in a letter to IAM members at United Airlines, Klemm noted that without a substantial increase in demand for air travel, “furloughs at every US-based airline at the end of September are almost certain.” He added: “I urge you to save as much of this earned bonus as you can, and spend some time in the next few months to prepare for the storms we see forming on the horizon. We can only hope it turns out to be rainy days and not a tsunami, but our union will be with you and will use every resource at our disposal to defend your rights and your livelihoods, just like we did when we reached these historic agreements with American Airlines.”

Employees of American Airlines may submit questions about this payment via the company’s Payroll Service Center, at psc@aa.com.

    RELATED ARTICLES