New DOT Rules Promise to Make Air Travel Less Horrible

New DOT Rules Promise to Make Air Travel Less Horrible

New DOT Rules Promise to Make Air Travel Less Horrible

New DOT Rules Promise to Make Air Travel Less Horrible

IAM141.org

WASHINGTON — The U.S. Department of Transportation, led by Secretary Pete Buttigieg, announced sweeping new regulations on Wednesday, requiring airlines to offer automatic cash refunds for significant delays and cancellations, marking a major shift towards enhanced passenger rights.

“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

Currently, airlines can offer passengers non-monetary refunds, such as free miles, for things like flight cancellations, delayed baggage, and poor Wi-Fi connections. The new rules will require airlines to refund the money passengers have paid for these services without requiring those passengers to ask for cash refunds.

“Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops,” stated Secretary Buttigieg, emphasizing the new mandate to simplify and ensure fairness in the refund process.

“Up until now, even though technically you’re already supposed to be able to get your money back for cancellation, you have to really fight for it,” Buttigieg said about the new rules. “A lot of times, what the airline would do is they’d say, ‘OK, well, here’s 5,000 miles,’ and that might sound great if you’re not aware that 5,000 miles is worth, say, $50 and you’re actually entitled to 400 bucks in a ticket refund,” Secretary Buttigieg explained.

The new rules will also eliminate the frustration of hidden and surprise fees by requiring airlines to disclose all costs upfront during the booking process. This transparency ensures that passengers can make informed decisions about their travel options, free from unexpected charges at the time of purchase or check-in.

“Today’s announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed — not only saving passengers time and money, but also preventing headaches,” Buttigieg said.

Machinists Union District Legislative Director David Roderick expressed strong support for the new regulations, noting their broader impact on the industry and workforce. “These regulations are a win-win for everyone involved,” Roderick said. “Better treatment of passengers directly contributes to more profitable airlines, which translates to more good-paying union jobs. This is exactly the kind of legislation our members should champion.”

Since 2021, the Department of Transportation has implemented several sweeping new airline regulations aimed at protecting the flying public. Under Secretary Pete Buttigieg, the DOT has advanced the largest expansion of airline passenger rights, issued record fines, and returned more money to passengers than ever before.

Thanks to initiatives imposed by the Department of Transportation, all major U.S. airlines now guarantee free rebooking and meals, with most offering hotel accommodations for significant delays. These guarantees are all enforceable by the DOT. 

In 2023, the U.S. achieved a record-low flight cancellation rate of under 1.2% despite high travel volumes. DOT is also reviewing airline privacy practices and loyalty programs aimed at further expanding passenger rights and transparency.

We have a quick favor to ask. If only 10% of union members sign up for regular donations to support important legislative and regulatory goals like this, we can put airline workers front and center on Capitol Hill. Becoming a recurring donor is more than a contribution—it’s a commitment to our cause and a testament to the power of collective action. Every donation helps, no matter the size.

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New DOT Rules Promise to Make Air Travel Less Horrible

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New DOT Rules Promise to Make Air Travel Less HorribleWASHINGTON — The U.S. Department of Transportation, led by Secretary Pete Buttigieg, announced sweeping new regulations on Wednesday, requiring airlines to offer automatic cash refunds for significant delays and...

United Negotiations Update

United Negotiations Update

United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

American Airlines Union Members Launch Pre-Negotiation Surveys

American Airlines Union Members Launch Pre-Negotiation Surveys

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Stay up to date with all the latest news and information from the District 141 of the Machinists Union

New DOT Rules Promise to Make Air Travel Less Horrible

25 April 2024

WASHINGTON — The U.S. Department of Transportation, led by Secretary Pete Buttigieg, announced sweeping new regulations on Wednesday, requiring airlines to offer automatic cash refunds for significant delays and cancellations, marking a major shift towards enhanced passenger rights.

“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

Currently, airlines can offer passengers non-monetary refunds, such as free miles, for things like flight cancellations, delayed baggage, and poor Wi-Fi connections. The new rules will require airlines to refund the money passengers have paid for these services without requiring those passengers to ask for cash refunds.

“Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops,” stated Secretary Buttigieg, emphasizing the new mandate to simplify and ensure fairness in the refund process.

“Up until now, even though technically you’re already supposed to be able to get your money back for cancellation, you have to really fight for it,” Buttigieg said about the new rules. “A lot of times, what the airline would do is they’d say, ‘OK, well, here’s 5,000 miles,’ and that might sound great if you’re not aware that 5,000 miles is worth, say, $50 and you’re actually entitled to 400 bucks in a ticket refund,” Secretary Buttigieg explained.

The new rules will also eliminate the frustration of hidden and surprise fees by requiring airlines to disclose all costs upfront during the booking process. This transparency ensures that passengers can make informed decisions about their travel options, free from unexpected charges at the time of purchase or check-in.

“Today’s announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed — not only saving passengers time and money, but also preventing headaches,” Buttigieg said.

Machinists Union District Legislative Director David Roderick expressed strong support for the new regulations, noting their broader impact on the industry and workforce. “These regulations are a win-win for everyone involved,” Roderick said. “Better treatment of passengers directly contributes to more profitable airlines, which translates to more good-paying union jobs. This is exactly the kind of legislation our members should champion.”

Since 2021, the Department of Transportation has implemented several sweeping new airline regulations aimed at protecting the flying public. Under Secretary Pete Buttigieg, the DOT has advanced the largest expansion of airline passenger rights, issued record fines, and returned more money to passengers than ever before.

Thanks to initiatives imposed by the Department of Transportation, all major U.S. airlines now guarantee free rebooking and meals, with most offering hotel accommodations for significant delays. These guarantees are all enforceable by the DOT. 

In 2023, the U.S. achieved a record-low flight cancellation rate of under 1.2% despite high travel volumes. DOT is also reviewing airline privacy practices and loyalty programs aimed at further expanding passenger rights and transparency.

We have a quick favor to ask. If only 10% of union members sign up for regular donations to support important legislative and regulatory goals like this, we can put airline workers front and center on Capitol Hill. Becoming a recurring donor is more than a contribution—it’s a commitment to our cause and a testament to the power of collective action. Every donation helps, no matter the size.

Related

New DOT Rules Promise to Make Air Travel Less Horrible

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New DOT Rules Promise to Make Air Travel Less HorribleWASHINGTON — The U.S. Department of Transportation, led by Secretary Pete Buttigieg, announced sweeping new regulations on Wednesday, requiring airlines to offer automatic cash refunds for significant delays and...

United Negotiations Update

United Negotiations Update

United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

American Airlines Union Members Launch Pre-Negotiation Surveys

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American Airlines Union Members Launch Pre-Negotiation SurveysUnion members at American Airlines, including thousands of workers in the Fleet Service workgroup, are gearing up to start contract negotiations in the upcoming months, according to a joint statement...

American Airlines Union Members Launch Pre-Negotiation Surveys

American Airlines Union Members Launch Pre-Negotiation Surveys

American Airlines Union Members Launch Pre-Negotiation Surveys

American Airlines Union Members Launch Pre-Negotiation Surveys

IAM141.org

Union members at American Airlines, including thousands of workers in the Fleet Service workgroup, are gearing up to start contract negotiations in the upcoming months, according to a joint statement released on April 1 by the Transport Workers Union and the Machinists Union.

Front-line union members of the Fleet Service workers at American Airlines are taking the lead in kicking off the new round of negotiations, set to begin in September of this year. They are sharing their main issues and concerns through surveys conducted by the two unions. These surveys are available to front-line union members starting April 1 and will run through April 19.

According to a joint statement released to union members this morning, “The feedback we get from these surveys will be vital to your Negotiating Committee as we prepare to begin talks with American Airlines.”

Fleet Service Workers at American are represented by two separate unions, the Transport Workers Union (TWU) and the Machinists Union (IAM). This partnership was forged in 2013 following the merger between American Airlines, and US Airways. Together the two unions represent about 30,000 workers from various workgroups at American.

The current contract was drafted after four years of bargaining at the airline. The TWU-IAM Association announced in January 2020 that they had reached Agreements in Principle with American Airlines for five new Joint Collective Bargaining Agreements (JCBAs) worth $4.2 billion. Fleet Service workers won top-of-industry wage increases, profit-sharing payments, and critical quality-of-life improvements. Importantly, union members also negotiated bullet-proof job protections, which other airlines have been required to match in order to stay competitive in the tightening airline job market.

Airlines are covered under the Railway Labor Act, which covers transportation-related industries. Under the Act, agreements between airlines and unions do not expire. Instead, they reach an “amendable date,” after which they can be updated. At airlines, this process can be lengthy and often takes several years to complete. The four years it took for American Airlines to agree to the current contract was similar in terms of timeframe to other airline contracts. Pilots at United Airlines, for example, also took a little over four years to reach an agreement with that airline.

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United Negotiations Update

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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Stay up to date with all the latest news and information from the District 141 of the Machinists Union

American Airlines Union Members Launch Pre-Negotiation Surveys

3 April 2024

Union members at American Airlines, including thousands of workers in the Fleet Service workgroup, are gearing up to start contract negotiations in the upcoming months, according to a joint statement released on April 1 by the Transport Workers Union and the Machinists Union.

Front-line union members of the Fleet Service workers at American Airlines are taking the lead in kicking off the new round of negotiations, set to begin in September of this year. They are sharing their main issues and concerns through surveys conducted by the two unions. These surveys are available to front-line union members starting April 1 and will run through April 19.

According to a joint statement released to union members this morning, “The feedback we get from these surveys will be vital to your Negotiating Committee as we prepare to begin talks with American Airlines.”

Fleet Service Workers at American are represented by two separate unions, the Transport Workers Union (TWU) and the Machinists Union (IAM). This partnership was forged in 2013 following the merger between American Airlines, and US Airways. Together the two unions represent about 30,000 workers from various workgroups at American.

The current contract was drafted after four years of bargaining at the airline. The TWU-IAM Association announced in January 2020 that they had reached Agreements in Principle with American Airlines for five new Joint Collective Bargaining Agreements (JCBAs) worth $4.2 billion. Fleet Service workers won top-of-industry wage increases, profit-sharing payments, and critical quality-of-life improvements. Importantly, union members also negotiated bullet-proof job protections, which other airlines have been required to match in order to stay competitive in the tightening airline job market.

Airlines are covered under the Railway Labor Act, which covers transportation-related industries. Under the Act, agreements between airlines and unions do not expire. Instead, they reach an “amendable date,” after which they can be updated. At airlines, this process can be lengthy and often takes several years to complete. The four years it took for American Airlines to agree to the current contract was similar in terms of timeframe to other airline contracts. Pilots at United Airlines, for example, also took a little over four years to reach an agreement with that airline.

 

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United Negotiations Update

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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Machinists Union Stands in Solidarity with Flight Attendants in Nationwide Day of Action

Machinists Union Stands in Solidarity with Flight Attendants in Nationwide Day of Action

Machinists Union Stands in Solidarity with Flight Attendants in Nationwide Day of Action

Pictured: Assistant General Chairs Erik Stenberg (left) and Mike Cyscon.

Machinists Union Stands in Solidarity with Flight Attendants in Nationwide Day of Action

IAM141.org

In a display of solidarity, members of the Machinists Union joined flight attendants in nationwide rallies held at over 30 major airports across the United States on Tuesday. The collective action, organized as part of the Worldwide Flight Attendant Day of Action, aimed to bring attention to the ongoing labor negotiations affecting over two-thirds of flight attendants at several major airlines.

Flight attendants from United Airlines, Southwest Airlines, Alaska Airlines, Air Wisconsin, American Airlines, Omni, and Frontier, represented by three different labor unions, took to the picket lines in cities including New York City, Orlando, Miami, San Francisco, Charlotte, Washington DC, Dallas, Atlanta, Chicago, Boston, Cleveland, Las Vegas, Los Angeles, and more.

The protests underscored the pressing issues at hand as flight attendants push for fair and just contracts amidst negotiations with their respective airlines. In total, the unions participating in the day of action represent more than 100,000 flight attendants at all major airlines in the United States.

“Our time is now!” declared AFA Alaska President Jeffrey Peterson. “Alaska Flight Attendants today backed up our fight for an industry-leading contract with a 99.48% strike vote. And we’re out on the picket line demonstrating that we’re ready to do whatever it takes to get the contract we deserve. There’s no excuse: Alaska management has the money to buy another airline, they certainly have the money to invest in Flight Attendants. We have a simple message for management: Pay us, or CHAOS!”

Flight attendants at Alaska Airlines, represented by the Association of Flight Attendants-CWA (AFA-CWA), voted overwhelmingly in favor of a strike authorization should management fail to agree to significant improvements. The last time Alaska Airlines Flight Attendants went on strike was in 1993, when Flight Attendants took over the schedule using AFA’s trademarked strike strategy, Creating Havoc Around Our System™ or CHAOS™.

“Alaska Flight Attendants are fired up and ready to go,” emphasized AFA International President Sara Nelson. “You can’t fly without Flight Attendants. If Alaska management doesn’t remember what happens when you disrespect Flight Attendants, we are ready to show them. It’s past time for a fair deal.”

“We are not a line item on a balance sheet,” stated Melinda Beal, president of the AFA Cleveland chapter, as reported by Axios. She highlighted the challenges faced by flight attendants, including longer hours with little rest between shifts, eroding wages due to inflation, and airlines reaping billions in profits. Beal emphasized the demand for raises and the challenge to the pay structure.

The demonstrations are not strikes, though that’s the next step. The industry norm is that attendants don’t get paid until the plane doors close. Union members are calling for full pay for their work during boarding or deplaning and for time on the ground between back-to-back flights. In 2022, Delta Air Lines became the first U.S. airline to pay flight attendants during boarding, but at only half their standard rate.

 

 

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United Negotiations Update

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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Machinists Union Stands in Solidarity with Flight Attendants in Nationwide Day of Action

February 14 2024

Pictured: Assistant General Chairs Erik Stenberg (left) and Mike Cyscon.

In a display of solidarity, members of the Machinists Union joined flight attendants in nationwide rallies held at over 30 major airports across the United States on Tuesday. The collective action, organized as part of the Worldwide Flight Attendant Day of Action, aimed to bring attention to the ongoing labor negotiations affecting over two-thirds of flight attendants at several major airlines.

Flight attendants from United Airlines, Southwest Airlines, Alaska Airlines, Air Wisconsin, American Airlines, Omni, and Frontier, represented by three different labor unions, took to the picket lines in cities including New York City, Orlando, Miami, San Francisco, Charlotte, Washington DC, Dallas, Atlanta, Chicago, Boston, Cleveland, Las Vegas, Los Angeles, and more.

The protests underscored the pressing issues at hand as flight attendants push for fair and just contracts amidst negotiations with their respective airlines. In total, the unions participating in the day of action represent more than 100,000 flight attendants at all major airlines in the United States.

“Our time is now!” declared AFA Alaska President Jeffrey Peterson. “Alaska Flight Attendants today backed up our fight for an industry-leading contract with a 99.48% strike vote. And we’re out on the picket line demonstrating that we’re ready to do whatever it takes to get the contract we deserve. There’s no excuse: Alaska management has the money to buy another airline, they certainly have the money to invest in Flight Attendants. We have a simple message for management: Pay us, or CHAOS!”

Flight attendants at Alaska Airlines, represented by the Association of Flight Attendants-CWA (AFA-CWA), voted overwhelmingly in favor of a strike authorization should management fail to agree to significant improvements. The last time Alaska Airlines Flight Attendants went on strike was in 1993, when Flight Attendants took over the schedule using AFA’s trademarked strike strategy, Creating Havoc Around Our System™ or CHAOS™.

“Alaska Flight Attendants are fired up and ready to go,” emphasized AFA International President Sara Nelson. “You can’t fly without Flight Attendants. If Alaska management doesn’t remember what happens when you disrespect Flight Attendants, we are ready to show them. It’s past time for a fair deal.”

“We are not a line item on a balance sheet,” stated Melinda Beal, president of the AFA Cleveland chapter, as reported by Axios. She highlighted the challenges faced by flight attendants, including longer hours with little rest between shifts, eroding wages due to inflation, and airlines reaping billions in profits. Beal emphasized the demand for raises and the challenge to the pay structure.

The demonstrations are not strikes, though that’s the next step. The industry norm is that attendants don’t get paid until the plane doors close. Union members are calling for full pay for their work during boarding or deplaning and for time on the ground between back-to-back flights. In 2022, Delta Air Lines became the first U.S. airline to pay flight attendants during boarding, but at only half their standard rate.

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United Negotiations Update

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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February Helping Hands: Financial Health

February Helping Hands: Financial Health

February Helping Hands: Financial Health

EAP Peers:
 
     February is often a month that people are struggling with finances after the holidays. We focus on a government agency that has some terrific resources – the Consumer Finance Protection Bureau. This agency has a myriad of resources to help with any consumer financial issue. There are links throughout the two pages that can connect people with help for most any financial issue. The electronic version allows folks to connect with whatever resource they feel will help their concern. Please make the electronic version available to your co-workers as you can
 
     Thank you for being there for others – this is important work and not many people are as dedicated to others as you have been – I appreciate everything you are doing!
 
Bryan,

Bryan Hutchinson, M.S.

Recent Articles

$8,000 in Scholarships are Now Available!

$8,000 in Scholarships are Now Available!

$8,000 in Scholarships are Now Available!

$8,000 in Scholarships are Now Available!

IAM141.org

District Lodge 141 is excited to announce the commencement of its 2024 Adolph Stutz Memorial Scholarship Essay Contest!

The essay competition is designed to encourage a better understanding and appreciation of the role of unions in America and foster a sense of community among our members and their families. By reflecting on the history and principles of unions, participants have the opportunity to gain a deeper understanding of this important institution and its impact on society. Through their personal experiences and reflections, they can inspire others to recognize the value of collective action and the power of working together towards a common goal. 

This year’s theme asks participants to contemplate “Reviving the American Dream: What Can I Do to Help My Generation Overcome Despair and Build a Better Future?” This competition is open to the children, spouses, and dependent grandchildren of members with one year or more of good standing in District Lodge 141 of the Machinists Union as of June 1, 2023. This includes graduating high school seniors and those who are currently enrolled full-time in college or trade school. The Grand Prize winner will receive a $2,000 award, and six additional winners will each receive a check for $1,000. 

Participants are asked to email their entries to dan@bleicomm.com by midnight on July 15, 2024.

CLICK HERE for the official rules and entry form.

 

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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Stay up to date with all the latest news and information from the District 141 of the Machinists Union

$8,000 in Scholarships are Now Available!

6 February 2024

District Lodge 141 is excited to announce the commencement of its 2024 Adolph Stutz Memorial Scholarship Essay Contest!

The essay competition is designed to encourage a better understanding and appreciation of the role of unions in America and foster a sense of community among our members and their families. By reflecting on the history and principles of unions, participants have the opportunity to gain a deeper understanding of this important institution and its impact on society. Through their personal experiences and reflections, they can inspire others to recognize the value of collective action and the power of working together towards a common goal. 

This year’s theme asks participants to contemplate “Reviving the American Dream: What Can I Do to Help My Generation Overcome Despair and Build a Better Future?” This competition is open to the children, spouses, and dependent grandchildren of members with one year or more of good standing in District Lodge 141 of the Machinists Union as of June 1, 2023. This includes graduating high school seniors and those who are currently enrolled full-time in college or trade school. The Grand Prize winner will receive a $2,000 award, and six additional winners will each receive a check for $1,000. 

Participants are asked to email their entries to dan@bleicomm.com by midnight on July 15, 2024.

CLICK HERE for the official rules and entry form.

 

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Bureau of Labor Statistics: Union Pay Gap Expands in 2023

Bureau of Labor Statistics: Union Pay Gap Expands in 2023

Bureau of Labor Statistics: Union Pay Gap Expands in 2023

Bureau of Labor Statistics: Union Pay Gap Expands in 2023

IAM141.org

WASHINGTON DC – According to the February report from the Bureau of Labor Statistics, union membership in 2023 held steady and did not decline despite employers spending over $400 million to oppose unification efforts in their workplaces. According to the report, 16.2 million American workers were represented by a union, a gain of 200,000 over 2022.

Union wages continued to lead the average typical weekly earnings of non-union Americans in 2023. Among full-time wage and salary workers, union members had a median usual weekly earnings of $1,263 in 2023, while non-union workers continued to fall behind, with a median usual weekly earnings of only $1,090.

This represents wages that are 14 percent higher than their non-union counterparts each week, translating to an additional $173 per week, $692 per month, and $8,996 per year. This figure is up from 2022, when union pay was 11.2% higher than non-union work.

While earnings remain a central focus for most workers, the issue of work-life balance is a hot topic within the American workforce. Interestingly, union members, particularly in commercial aviation, enjoy an enviable degree of control over their schedules. They can trade away or pick up work shifts from coworkers and seasonal bids to work the hours, work areas, and days off in order of years on the job that are unheard of outside of unions. This level of schedule flexibility is nearly unheard of outside union workplaces.

Retirement benefits are another area where union membership pays off. In private industry, 93 percent of union workers had access to a retirement plan, compared to only 67 percent of non-union workers. Union workers were five times more likely to have access to defined benefit retirement plans, which guarantee a predictable income during retirement.

Healthcare benefits are nearly universal among union workers, with 96 percent having access compared to 69 percent of non-union workers. Employers were responsible for 80 percent of the premiums for medical care and family coverage for union workers, compared to 65 percent for non-union workers.

To combat these advances, companies have spent more than $400 million to prevent their employees from forming unions. According to data compiled by the Economic Policy Institute, attacks on union organizing have cost companies more than $400 million a year.

The study, released in March 2023, estimates that employers spend $433 million per year on “union-avoidance” consultants. According to the study, these consultants are paid $350 an hour and up, or $2,500 daily rates, to prevent their workers from banding together as a union. The actual figures are likely much higher since employers are only required to disclose a fraction of their union avoidance costs.

A portion of this spending is recouped through tax laws; businesses can deduct union avoidance costs from their tax liabilities.

These efforts have kept union membership as low as possible for these companies despite historically high support for unions. Around 67% or two-thirds of Americans support unions, as per a Gallup poll released in September. Yet, due to the overwhelming spending companies are using to prevent the formation of unions, only about 11.2% of Americans report union membership.

About 16.2 million American workers are represented by labor unions, a figure that includes 14.4 union members and 1.8 million workers who refuse to support a union but whose jobs are covered by a union agreement.

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United Contract Negotiations Update23 April 2024Dear Machinists Union Sisters and Brothers at United Airlines, As President and Directing General Chair of IAM District Lodge 141, I want to thank you for your participation in our recent pre-negotiation surveys. Your...

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Bureau of Labor Statistics: Union Pay Gap Expands in 2023

6 February 2024

WASHINGTON DC – According to the February report from the Bureau of Labor Statistics, union membership in 2023 held steady and did not decline despite employers spending over $400 million to oppose unification efforts in their workplaces. According to the report, 16.2 million American workers were represented by a union, a gain of 200,000 over 2022.

Union wages continued to lead the average, typical weekly earnings of non-union Americans in 2023. Among full-time wage and salary workers, union members had a median usual weekly earnings of $1,263 in 2023, while non-union workers continued to fall behind, with a median usual weekly earnings of only $1,090.

This represents wages that are 14 percent higher than their non-union counterparts each week, translating to an additional $173 per week, $692 per month, and $8,996 per year.

While earnings remain a central focus for most workers, the issue of work-life balance is a hot topic within the American workforce. Interestingly, union members, particularly in commercial aviation, enjoy an enviable degree of control over their schedules. They can trade away or pick up work shifts from coworkers and seasonal bids to work the hours, work areas, and days off in order of years on the job that are unheard of outside of unions. This level of schedule flexibility is nearly unheard of outside union workplaces.

Retirement benefits are another area where union membership pays off. In private industry, 93 percent of union workers had access to a retirement plan, compared to only 67 percent of non-union workers. Union workers were five times more likely to have access to defined benefit retirement plans, which guarantee a predictable income during retirement.

Healthcare benefits are nearly universal among union workers, with 96 percent having access compared to 69 percent of non-union workers. Employers were responsible for 80 percent of the premiums for medical care and family coverage for union workers, compared to 65 percent for non-union workers.

To combat these advances, companies have spent more than $400 million to prevent their employees from forming unions. According to data compiled by the Economic Policy Institute, attacks on union organizing have cost companies more than $400 million a year.

The study, released in March 2023, estimates that employers spend $433 million per year on “union-avoidance” consultants. According to the study, these consultants are paid $350 an hour and up, or $2,500 daily rates, to prevent their workers from banding together as a union. The actual figures are likely much higher since employers are only required to disclose a fraction of their union avoidance costs.

A portion of this spending is recouped through tax laws; businesses can deduct union avoidance costs from their tax liabilities.

These efforts have kept union membership as low as possible for these companies despite historically high support for unions. Around 67% or two-thirds of Americans support unions, as per a Gallup poll released in September. Yet, due to the overwhelming spending companies are using to prevent the formation of unions, only about 11.2% of Americans report union membership.

About 16.2 million American workers are represented by labor unions, a figure that includes 14.4 union members and 1.8 million workers who refuse to support a union but whose jobs are covered by a union agreement.

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