Broken Promises: Informational Picket Draws Massive Turnout at LAX

Los Angeles International Airport (LAX) – A coalition of unions representing all unified workers at United Airlines held an informational picket on Wednesday at LAX Airport in Los Angeles. Rallygoers marched to bring attention to ongoing contract negotiations with the airline, which have been met with delays and bad faith bargaining, some of which have drug on for years. United Pilots, for example, are in the fourth year of negotiations with the carrier. 

The coalition, which includes the International Association of Machinists and Aerospace Workers (IAM) and the Air Line Pilots Association (ALPA), Teamsters (IBT), and Flight Attendants of America (AFA), included Pilots, mechanics, flight attendants, customer service agents, and baggage handlers.

United has reneged on several commitments it made to its workforce. In the lead-up to negotiations, executives promised that it would not seek to outsource jobs and that it would offer strong wages compared to other airlines. Instead, the company is trying to force union members to accept outsourcing and plans to pay the lowest wages of any of the Big Three airlines. Executives want lower than promised pay for gate, ticket counter, and customer service workers, in particular. The new pay rates proposed by United would sit at levels below similar workgroups at smaller airlines and discount carriers such as Alaska and Southwest Airlines. 

Further straining labor relations at the company is the issue of profit sharing. 

United announced earlier this year that a rush of summer and holiday bookings led to two back-to-back quarters that were among the most lucrative in the airline’s history. Over the summer, United reported total earnings near $1 billion. The carrier brought in a net income of $942 million, with an adjusted profit of $927 million. “Operational Performance,” one of the indicators that help determine the productivity of front-line workers, were among the best in the history of the airline. Over the  holidays, United again generated higher-than-expected earnings, totaling more than $840 million.

ALPA President,  Garth Thompson

The performance of employees was the driving factor behind the profits. In the Fourth Quarter, the on-time performance came in at an enviable 80%, allowing United to boast the best on-time and completion rate of any network carrier at three major hubs (Chicago, Denver, and Houston.) Moreover, United employees created the lowest fourth-quarter misconnect rate in the airline’s history. All of which demonstrate the critical role of front-line workers at the carrier.

The profits have led United to increase spending for its “Good Leads the Way” marketing campaign, and order new planes, among many other programs. Executives have also opted to give themselves lavish salary increases. CEO Scott Kirby alone now has an estimated net worth of more than $32 million, according to the executive tracking site Wallmiime.com. Compared to front-line workers at United, Kirby will take home $126 for each dollar a typical worker earns.

Yet, executives suddenly become tight-fisted when sharing the record profits with the workforces that created them. Ground and Gate agents and dispatchers at United are getting an anemic .84% profit sharing this year. Despite the airline’s difficulty in hiring new pilots amid a nationwide shortage, pilots at United are only getting slightly more – 1.7%. (United has also denied pilots a new contract for four years.)

Informational pickets have become popular among union members, as they help raise awareness about their workplace concerns while also demonstrating solidarity. These pickets typically involve union members gathering outside of a company’s workplace or other public location, holding signs to be seen by passing pedestrians and motorists. 

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The IAM organized McGee Air Services in July 2016. The tentative agreement extension covers IAM members who work in Phoenix, AZ; San Jose, CA; Portland, OR; Seattle, WA; San Francisco, CA; Oakland, CA; Los Angeles, CA; and Paine Field, WA.

If ratified by IAM members at McGee Air Services, the two-year extension would:

• Provide a 5% wage increase at all steps in all locations on the date of ratification.
• Additional wage steps for employees with +48 months and +60 months (an additional $.25 increase at each step.)
• Contractual Pay raises in accordance with the contract in July 2024, July 2025, and during the amendable period.
• $1275.00 ratification bonus payable within thirty (30) days of ratification.
• Increased lead differential from $2.50 to $6.00
• Increased PTO accruals and maximum hours banked.
• 401k plan to be implemented 6/1/2023
• $50,000life insurance policy for all employees paid for by Company effective 6/1/2023
• Enhanced grievance procedure

Read the complete highlights of the tentative agreement here.

IAM members at McGee Air Services will vote on the tentative agreements in the coming weeks. During that period, IAM representatives will also hold contract educational meetings at the McGee Air Services stations.

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Machinists Union Reaches Tentative Agreement for Over 2300 Members at McGee Air Services, a subsidiary of Alaska Airlines

WASHINGTON, Dec. 21, 2022 –The International Association of Machinists and Aerospace Workers (IAM) has reached a two-year tentative agreement extension with McGee Air Services, an Alaska Airlines subsidiary, that will put over 2300 IAM members at McGee Air Services workers at one of the highest pay scale levels for airline operation vendors in the industry.

The IAM organized McGee Air Services in July 2016. The tentative agreement extension covers IAM members who work in Phoenix, AZ; San Jose, CA; Portland, OR; Seattle, WA; San Francisco, CA; Oakland, CA; Los Angeles, CA; and Paine Field, WA.

If ratified by IAM members at McGee Air Services, the two-year extension would:

• Provide a 5% wage increase at all steps in all locations on the date of ratification.
• Additional wage steps for employees with +48 months and +60 months (an additional $.25 increase at each step.)
• Contractual Pay raises in accordance with the contract in July 2024, July 2025, and during the amendable period.
• $1275.00 ratification bonus payable within thirty (30) days of ratification.
• Increased lead differential from $2.50 to $6.00
• Increased PTO accruals and maximum hours banked.
• 401k plan to be implemented 6/1/2023
• $50,000life insurance policy for all employees paid for by Company effective 6/1/2023
• Enhanced grievance procedure

Read the complete highlights of the tentative agreement here.

IAM members at McGee Air Services will vote on the tentative agreements in the coming weeks. During that period, IAM representatives will also hold contract educational meetings at the McGee Air Services stations.

“The IAM’s tentative agreement was long overdue for our members who give so much to carry out the mission of McGee Air Services,” said IAM Air Transport Territory General Vice President Richie Johnsen. “This agreement came about after meeting and listening to our member’s concerns during station visits this year. IAM members’ ramp service work is vital in making Alaska Airlines one of the top-performing airlines.”

“Excellent way to close out the year by presenting an agreement extension called for by the membership,” said IAM District 142 President and Directing General Chair John Coveny. “Once again, our IAM leadership provided the necessary resources to help obtain a tentative agreement that will impact other companies similar to McGee Air Services. I appreciate the dedication of our IAM negotiating committee and the entire support staff for their work in getting improved wages and benefits. The next steps include meeting with the members to answer any questions about this agreement extension.”

The International Association of Machinists and Aerospace Workers is one of the largest and most diverse industrial trade unions in North America, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, railroad, transit, healthcare, automotive, and other industries.

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