“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

May 1, 2020 | Featured, Front Page, Home, Home, Uncategorized, United | 26 comments

Incoming United CEO Kirby Initiates Forced Layoffs, Violates Contracts While Taking Billions of Taxpayer-Funded Airline Bailout Money.

This morning, United Airlines announced it will cut the pay and benefits of all full-time IAM members at United Airlines. Not only is this action by United’s incoming CEO Scott Kirby, EVP Human Resources, Kate Gebo, and their leadership team cruel and selfish, it is quite possibly illegal.  

The IAM is considering all legal options, including a lawsuit against United to stop this action and protect our membership. The decision by Mr. Kirby and Ms. Gebo, who have lined their pockets with record bonus payments, to upend the lives of tens of thousands of committed United Airlines workers who have turned this airline around through past sacrifices and a commitment to OUR airline is unconscionable. We recognize the need for airlines to save money in these unprecedented times, but these cuts are not about saving money.

The carrier has refused to engage with the IAM in cost saving discussions that would provide the carrier with the same amount of financial relief as they claim the involuntary furloughs will without gutting our contracts or the CARES Act. Over the past two weeks, the IAM presented a myriad of voluntary programs and options to provide the company tens of millions of dollars of savings. This is IN ADDITION to approximately $30 plus million per month they are already saving through current voluntary leaves of absence (COLA) and reductions in hours for part-time workers. The IAM’s proposals added to current savings equal over $200 MILLION over the next five months. The company rejected every one of our ideas and presented none, except for cutting the hours of full-time workers. It’s apparent their goal is not to save money, but to hurt their employees and their families. 

What is truly outrageous is that United has received $5 billion in taxpayer funded airline bailout money under the CARES Act and has cut IAM members’ pay and benefits, something the CARES Act clearly forbids. United plans to have approximately $9.5 billion in cash at the end of the second quarter. They will report at the end of the third quarter upwards of $5.5 billion and a greatly reduced cash burn rate for the fourth quarter. This action is NOT necessary and is being taken because of United management’s laziness to find workable solutions centered on caring for their workers. 

The IAM believes that involuntarily furloughing all full-time workers is not in compliance with the CARES Act or our legal contracts at United. Downgrading all full-time employees to part-time status requires a forced furlough and reduces pay and benefits.   

That is why we are fighting.  

Remember, our pension, 401K contributions, vacation, sick time, occupational illness time and many other benefits are tied to the hours we work. With the number of voluntary COLAs the company has been able to get so far— over 23,000 employees in May alone—the $5 billion received in airline bailout funds will likely be more than they need to cover payroll through September. This is almost certainly the case now with forced furloughs of all full-time workers.

When a merchant takes someone’s money and does not provide the product or service they paid for, that customer will not return. As air travel rebounds, United’s passengers will know that the airline misappropriated the tax money intended to preserve workers’ pay and benefits and will bring their business to responsible carriers. United’s short-term solution will cause long-term problems for the carrier and its shareholders.

Every IAM member, whether employed by United or not, should be outraged and let their voices be heard. It’s very obvious that United’s Core 4 corporate philosophy is a fraud. It’s apparent that United’s new philosophy is Greed, Cruelty and Dishonesty. Deserving of a special shout out for deception is EVP and COO Greg Hart’s email that falsely claims a “more favorable” agreement was available. Nothing could be further from the truth. United management, nor the Union, can violate the law, IAM members’ contracts or IAM members’ rights. Greg never took part in any conversation and, frankly, doesn’t know what he’s talking about. 

All union members will be advised of further developments as they occur. 

 

Mike Klemm,

President and Directing General Chair, 
International Association of Machinists and Aerospace Workers, District 141

 

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“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

IAMAW District 141 President Klemm to United: “Unacceptable.”

May 1, 2020 | COVID, Featured, Front Page, Home, Home, Organizing, Uncategorized | 36 comments

May 1, 2020

Good morning to all of our DL 141 Brothers and Sisters, but this memo is specific to our United members who fall under the PSE and Fleet agreements at United Airlines.

I’m sure the anxiety and frustration of rumors circulating around the workplace and social media are taking its toll on you all, and for that I’m sorry. I wish I could make them all go away right now but the truth of the matter is this: only United Airlines can do that today and unfortunately, only a return of the flying public can do that past September 30, 2020.

As communicated last week, United Airlines has advised us they are looking to reduce all employees who work under the Passenger Service (including Reservations) and Fleet agreements to part-time to save money. Money for a Company that has over $10 billion on hand today, that will have between $8 and $10 billion at the end of June and between $4 and $6 billion at the end of September.

Regardless, no Company can survive long-term with passenger loads the way they are at United today.

We have suggested many cost savings ideas for the Company. Some of those are;

  1. Allow 12-month COLAS that continue to pay employees 25% of their salary.

  2. Offer the medical bridge to employees between the ages of 55-65. (It’s important to note that we have over 10,000 members under these two contracts who are 55 or older.)

  3. Allow employees to defer 25-50% of their salary until the first quarter of 2021.

We’ve suggested incentivizing these voluntary programs by offering United club passes and Positive Space travel which would cost the Company nothing.

Additionally, we have put forward several smaller, but critical proposals that can produce the level of savings that United needs if we can attract enough participation from our members. 

More than 25% of employees have taken 3 to 6-month COLAs already. The company does not want to count these sacrifices alongside the other cost-cutting efforts that have been made to date.

As of this communication, the company has declined these suggestions without so much as an explanation. They have told us they would be making a decision on many of these matters as early as today.

If the Company were to furlough all full-time employees to part-time they would still be required to follow key contractual rules. For example, they will need to notify everyone no later than Monday, May 4th to meet their May 24th target date to adhere to the contractually-required 20-day language.

They have also told us they plan to go down to 22 hours. We expressed that a 45% pay cut, or any pay cut for that matter, is unacceptable under the CARES act and even though we don’t and won’t agree to any pay cuts, they should at least give everyone 30 hours a week.

Times are tough. It’s easy to be an employee-friendly company when you’re making billions on top of billions of dollars (which again, they still have). However, it’s times like this, when everyone is scared for their livelihood, their safety, and our industry as a whole that United could show true CORE4 leadership.

As our Country salutes its essential workers is this really how United wants to treat theirs?

Mike Klemm
President and Directing General Chair,
District 141, International Association of Machinists and Aerospace Workers

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Protecting Yourself Financially From COVID-19: April Helping Hands EAP Newsletter

Protecting Yourself Financially From COVID-19: April Helping Hands EAP Newsletter

Apr 23, 2020 | COVID, EAP, Featured, Front Page, Helping Hands, Home, Uncategorized | 0 comments

EAP Peer Coordinators:

 
     This issue addresses how to protect your finances from the impact of corona virus. There is a special addendum with specific steps to help with handling budgets. This information is from the Consumer Financial Protection Bureau, (www.consumerfinance.gov). This is a very informative web site with lots of great free financial information. 
 
     The entire issue has many hyperlinks to relevant web sites. The issue is best distributed electronically, so the hyperlinks can be accessed. If you can’t send it electronically, you may want to be able to share the links with your co-workers as they express interest in a specific  topic. I am happy to help if you have any trouble accessing any of the links. 
 
     It is important to anticipate what might happen after the CARES act funds end, September 30. We have a few months for everyone to look at their financial situation and to prepare for tough times. We can refer co-workers to  the web sites within the issue. Let’s be there to help when questions arise and financial information can be beneficial. 
 

     Thank you for getting this information out. I appreciate your efforts as we step up getting information out to our membership. 

 

 

Bryan,

Bryan Hutchinson, M.S.

Helping Hands Special Edition V

 

There are ways to get help if you are struggling to pay your bills due to the financial impact of COVID-19. If you can still pay your bills, you will likely be better off staying on track. Keep in mind that if you decide to use a program that lets you pause or reduce payments, you will still owe the money you have not paid once the program ends.

You have options.

Download Helping Hands

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Machinists Union Opposes Delta and JetBlue Taking Bailout Money and Cutting Workers’ Pay

Machinists Union Opposes Delta and JetBlue Taking Bailout Money and Cutting Workers’ Pay

Apr 23, 2020 | COVID, Featured, Front Page, Home, Home, MNPL, Safety, Safety, Uncategorized | 1 comment

The International Association of Machinists and Aerospace Workers (IAM) today demanded that Delta Air Lines and JetBlue Airways, who received taxpayer-funded federal funds, reverse course and restore airline workers’ pay.

“The payroll support component for air carriers in the CARES Act requires that taxpayer-funded grant dollars be used to maintain the pay and benefits of the dedicated JetBlue and Delta workers who have made your airlines successful and who are risking their lives every day by providing essential services to the American public,” said IAM District 141 and 142 Presidents Mike Klemm and Dave Supplee in a letter to the two airlines’ CEOs. “It is our understanding that tens of thousands of Delta and JetBlue workers have taken unpaid voluntary leaves in order to aid the carriers in reducing labor costs, yet you have implemented unconscionable policies to reduce the pay of those workers that remain. At Delta, thousands of workers are being forced to work fewer hours per week without pay. At JetBlue, workers have been forced to take 24 days of unpaid leave from now until September 30, 2020. The grant money that you demanded and received was calculated using these workers’ compensation and is meant to maintain their salaries and benefits through this crisis.”

Both Delta Air Lines and JetBlue Airways applied for and received direct, taxpayer-funded federal grants under the CARES Act. As a condition of taking the direct grant federal funds, air carriers are prohibited from cutting airline workers’ pay and benefits and from laying off workers until September 30, 2020.

“Hundreds of thousands of IAM members in every sector of our union proudly called elected officials and demanded action to protect the industries in which we work,” continued Klemm and Supplee. “Now, opportunist corporate actors such as yourselves are using that good faith support of airline workers around the country and at every carrier to screw your own workforces and greedily undermine the intent of the federal stimulus funds that you demanded.”

READ THE ENTIRE LETTER HERE. The IAM is the world’s largest airline union and represents over 600,000  members. More information about the IAM and our campaigns to organize Delta and JetBlue workers is available at www.iamdelta.net, www.iamjetblue.com and IAMDeltaworkersunite.

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“This is Why We’re Fighting.” IAMAW District 141 President Klemm Addresses United’s Violation of the CARES Act

“We Will Fight” IAM District President Mike Klemm Responds to United Effort to Slash Workers to Part-Time

Apr 23, 2020 | Uncategorized | 10 comments

April 23, 2020

I would like to inform the District 141 membership at United Airlines that management has advised the IAM that they are considering converting all full-time Airport Operations employees to part-time, which could amount up to a 50 percent pay cut, to save money.

IAM District 141, consequently, advised United management that we are prepared to sue them in federal court if they take this action because we believe that any type of furlough or reduction in pay and/or benefits before September 30, 2020, is a violation of the CARES Act. We will also fight United in the political and public arenas and let our elected officials and the public know that United Airlines management is accepting billions of dollars in taxpayer-funded bailout money with one hand and screwing its workforce with the other.

United applied for and received $5 billion under the CARES Act: $3.5 billion as a direct grant for payroll support, which does not need to be paid back and $1.5 billion in very low-interest loans. United also has access to an additional $4.5 billion in federal loans. As a condition of taking the payroll support, the CARES Act mandates that workers’ pay and benefits not be reduced, nor can workers be involuntarily laid-off before September 30, 2020.

The amount of direct grant aid and loans that United was eligible for was calculated based on payroll from April 1, 2019, to September 30, 2019. Over the last couple of months, more than 20,000 United workers have taken voluntary leaves, which has drastically reduced payroll costs. You don’t have to have a Ph.D. in math to understand that something is very wrong here. Unbelievably, that is not enough for United management. They are considering cutting 13,000+ IAM-represented full-time workers’ pay by up to 50 percent. This is absolutely unconscionable and cannot stand.

I very much understand that the airline industry is in a crisis. But, that’s exactly why every AFL-CIO airline union, led by thousands of calls and activism by IAM members and other airline union members, non-represented airline workers, and the airlines themselves fought for the CARES Act. We worked together to save airline workers’ jobs, pay, benefits, and the industry. Now, instead of following the rules of the CARES Act, United is engaging in shaky lawyering, looking for legal loopholes instead of exhibiting leadership and integrity.

We have, however, offered United management different ideas to increase, expand, and enhance voluntary programs that would reduce United’s costs during this very tough time. We will continue to work with them to find mutually agreeable solutions to help United Airlines.

But, if we are forced to have a fight, we WILL fight.

Mike Klemm

President and Directing General Chair,
District 141, International Association of Machinists and Aerospace Workers

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Explaining the Political Priorities of IAMAW District 141

Explaining the Political Priorities of IAMAW District 141

Apr 17, 2020 | COVID, Featured, Front Page, Home, Home, MNPL, Uncategorized, Video | 0 comments

Explaining the Political Priorities of the Machinists and Aerospace Union, Dist. 141

IAMAW District 141 Legislative Director, Dave Roderick sits down with Dave LeHive to explain how important the work of the Machinists Non-Partisan Political League is during the COVID-19 Crisis and beyond.

Visit the IAM141 Legislative Page

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