At United, Greed Leads the Way

At United, Greed Leads the Way

At United, Greed Leads the Way

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.

The JetBlue / Spirit Merger and the Threat to Job Security

The JetBlue / Spirit Merger and the Threat to Job Security

The JetBlue-Spirit Merger and the Risk to Job Security

Organizing
9 August 2022

The JetBlue and Spirit merger presents a significant risk to the job security of those workers who do not have contractual employment protections. Why?

“Asset divestitures can smooth the way to antitrust approval.We have a path to close this deal,”
-CEO Robin Hayes

The JetBlue-Spirit merger will have to receive approval from the federal government to be finalized. With airfares soaring and countless operational problems, it is expected that the Biden Administration will be VERY apprehensive to approve any airline merger. This is especially true for the JetBlue-Spirit merger, as the Biden Administration has already sued JetBlue and American, alleging the airlines’ Northeast Alliance is a de facto merger that hurts competition in the New York and Boston markets. So what will JetBlue have to do to gain regulatory approval for its merger with Spirit?

Two words: Divest operations to address the issue of competition. So, for example, where JetBlue and Spirit both have significant operations—think FLL, MCO and other locations—to gain approval for the merger JetBlue will have to give up a portion of its flight schedule to other airline/s. That means JetBlue is bound to divest in many locations, which means a reduction of the current combined flights of Spirit and JetBlue. And that affects jobs. 

And, if the merger is ultimately approved, a big if, it will not happen until the first half of 2024. A lot can happen in 15-18 months. There can be an economic slowdown, happening now as the GDP has decreased in the last two quarters, or a significant change in the leadership philosophy of the combined carrier. 

JetBlue management’s objective, as stated in its latest second-quarter earnings report, is to get the merger with Spirit approved and to implement a severe cost containment strategy with its newly announced “Enterprise Planning Team.” 

What does that mean for outsourcing and general job security? Future wage and benefit improvements? Work rule enhancements? 

The only way that JetBlue GO Crewmembers will be able to have a say in their future is by having a seat at the table. Not by being on the menu.

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2022 Stutz Memorial Scholarship Winners Announced!

2022 Stutz Memorial Scholarship Winners Announced!

Congratulations to the 2022 Stutz Memorial Scholarship Winners!

To: District Lodge 141 Scholarship Competition Applicants
Subject: Scholarship Awards

On behalf of the District Lodge 141 Scholarship Committee, I am pleased to announce the results of the Adolph Stutz Memorial Scholarship Award competition for 2022.

Top Prize: $2,000

 

The top award of $2,000 goes to Jaxson Mercer of Hutto, Texas. Jaxson is the son of Kristian Mercer, a Ramp Service employee at United Airlines and a member of Local Lodge 2210. He is an incoming freshman at Texas A&M University.

 

Six runner-up awards of $1,000 will be presented to (listed in alphabetical order):

Ted Enolva of Elk Grove Village, Ill. Ted is the son of Emmanuel Enolva, a Lead Ramp Service employee at United Airlines and a member of Local Lodge 1487. He is a student at the University of Illinois at Urbana-Champaign.

 

Ayanna Monderoy of Spring, Texas. Ayanna is the daughter of Sarah Monderoy Garcia, a Ramp Service employee at United Airlines and a member of Local Lodge 811. She is a student at Stephen F. Austin State University.

 

Hailey Peck of Kansas City, Mo. Her father, Todd Peck, is a Fleet Service Clerk at American and a member of Local Lodge 561. Hailey is a student at the University of Missouri at Columbia.

 

Awitar Shakro of Morton Grove, Ill. Awitar is the son of Nadim Shakro, a Customer Service employee at United Airlines and a member of Local Lodge 1487. Awitar is an incoming freshman at Oakton Community College.

 

Francesca Trajana of Arlington Heights, Ill. Francesca’s father, Joseph G. Trajana, is a Lead Ramp Service employee at United Airlines and a member of Local Lodge 1487. Francesca is a student at Loyola University in Chicago.

 

Lauren Wehr of East Stroudsburg, Penn. Laura is the daughter of Allan Wehr, a Specialist at United Airlines and a member of Local Lodge 914. She is an incoming freshman at Northampton Community College.

 

To the winners: Congratulations! To receive your award, you must send to me, either by email to dan@bleicomm.com or by regular mail to the address on the bottom of this letter, confirmation of your enrollment at an accredited college or university for the Fall 2022 term and that you are taking a minimum of six credits. A copy of a signed, valid registration or class schedule confirmation will be satisfactory. Once this confirmation has been received, the AGC in your area will notify you when you can receive your check at a Local Lodge meeting.

To those who did not win: The Scholarship Commends your interest  in the 2022 competition. We encourage you to try again next year!

Sincerely, 

Daniel J. Brin
Chair, District Lodge 141 Stutz Memorial Sholarship Committee

Recording Secretaries: Please print and post on all union bulletin boards.

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Machinists Union Says Defending Workers’ Rights is the Top Priority in JetBlue-Spirit Tie-Up

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JetBlue Airways and Spirit Airlines this morning announced that the two airlines plan 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.

“As we know from the history of airline mergers and acquisitions, top executives will promise the world to gain regulatory approval. But, when the dust is settled and approval is granted, airline workers almost always get the short end of the stick,” said IAM Air Transport General Vice President Richard Johnsen. “The Machinists Union is the most powerful and experienced union when it comes to defending airline workers’ rights during mergers. We have done it before and we will do it again. IAM members at Spirit Airlines and future IAM members at JetBlue Airways will have their interests defended, just as every IAM member has during previous mergers.”

It’s expected that the proposed merger will face stiff regulatory approval from the Biden Administration. JetBlue already faces opposition from the Justice Department, which has sued to break up its commercial agreement with American Airlines Group Inc. The regulators allege that the partnership — which targets the New York and Boston markets — is anti-competitive.

“I want all IAM members at Spirit Airlines to know the Machinists Union will ensure your contract is enforced during this process and that your rights will be defended,” continued Johnsen. “I also want all the JetBlue Ground Operations Crewmembers to know that your campaign to gain IAM representation takes on even more importance now. It is urgent that you have a seat at the table, so you’re not on the menu.”

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

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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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Machinists Advocate for Middle-Class Jobs, Trade Adjustment Assistance at Global Supply Chain Forum

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Machinists Advocate for Middle-Class Jobs, Trade Adjustment Assistance at Global Supply Chain Forum

Legislative Goals
25 July 2022

Since late 2021, the economy has suffered debilitating setbacks primarily due to wrinkles in the global supply chain. As a result, President Biden hosted a supply chain summit with 14 other countries that same year to begin tackling the immediate supply chain issues. 

Fact Sheet: Global Supply Chain Summit

Machinists Union was invited to participate in the Labor and Workforce Development breakout of the two-day 2022 Ministerial Forum on Global Supply Chain Resilience, scheduled for July 19 and 20. 

The event hosted by U.S. Secretary of State Antony Blinken and U.S. Secretary of Commerce, Gina Raimondo, focuses on ways to tackle the supply chain issues championed by President Biden. 

Included in these discussions were geographic diversity of advanced manufacturing centers, fostering stakeholders in labor, small businesses, transportation, and logistics to improve supply chains. All while expanding global training to enhance readiness in workforce participation for all workers, including women and other underutilized minority groups.

 2022 Supply Chain Ministerial 

“The IAM made it clear that to improve supply chain issues, the next generation of workers must receive the skills they need to fill good middle-class jobs,” said Peter Greenberg, IAM Strategic Resources Assistant Director. “We need improved and consistent funding for apprenticeship programs and the continuation of Trade Adjustment Assistance programs for displaced workers.”

The overall goal for this global partnership is to reduce and end near-term supply chain disruptions. The Departments of State and Commerce are committed to building long-term solutions while easing future troubles in the global supply chain. Advocacy and education are needed at every level, from workers, city leaders, state, federal, and international leaders. In addition, the Biden Administration aims to secure custom supply chain solutions for businesses and workers in each locality – securing jobs for all workers.

 Watch: The Modern World Doesn’t Work Without the Global Supply Chain.

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