United Reconsiders Furloughs

United Reconsiders Furloughs

May 6, 2020 | COVID, Featured, Front Page, Home, Home, Row 2, United | 8 comments

Greetings!

As you know yesterday, your union filed a lawsuit against United Airlines in the United States District Court for the Eastern District of New York in Brooklyn. We sought an injunction against United Airlines on behalf of the 27,000 IAM represented Fleet Service and Passenger Service workers to halt United’s illegal scheme to reduce all of our full-time members to part-time in violation of the Railway Labor Act and United’s agreement under the Coronavirus Aid and Relief and Economic Security Act  (“CARES Act”) to maintain the wages and working conditions of its employees through September 30, 2020, as a condition for obtaining $5 Billion in taxpayer dollars.

Early this morning we received a message from Greg Hart, Executive Vice President, and Chief Operations Officer that at least for now, United has reconsidered its position. The latest from the company is that instead of unilaterally forcing our full-time members to become part-time, they will instead offer what they call a Company- Offered Leave of Absence Program (COLA) starting next week. Under their new plan, our full-time members can elect to become part-time and go from 40 hours per week to 30 hours without losing their full-time status. Those full-time employees who do not agree to reduce their hours will remain full time. However, we are not out of the woods yet. The company has said it will review the situation at the end of June and if there is not a “high level of participation” they will reconsider resuming their forced reduction to the part-time program. 

Sito Pantoja, IAM General Vice President Transportation stated: “It is deeply troubling that it took thousands of our members appealing to their elected Congressional representative and the filing of a lawsuit yesterday to get United, with whom we worked so hard to help get their billions in CARES Act funding, to finally reconsider its blatantly illegal course of conduct which was to be so damaging to our members. It is striking that the President of American Airlines publicly stated that United’s conduct in attempting to reduce our full-time employees to part-time was not permitted by the CARES Act. While today it appears that, thanks to your hard work and solidarity, we have won an important battle, we have not yet won the war. We will monitor United’s action closely to see what further legal and congressional action may become necessary.” 

Mike Klemm, President of IAM District Lodge 141 stated, “I am deeply grateful for the tireless help of Sito, his entire staff, our legal team and my executive board for helping the District hold off United’s attack on our members. Clearly, we would not have won this round of our struggle without the solidarity and support of our entire union and the thousands of IAM members we represent.”

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The IAMAW Has Filed for an Injunction to Stop Unlawful Furloughs at United Airlines

The IAMAW Has Filed for an Injunction to Stop Unlawful Furloughs at United Airlines

May 6, 2020 | COVID, Featured, Front Page, Home, Home, Row 2, United | 1 comment

Today the International Association of Machinists and Aerospace Workers (“IAM”) filed a lawsuit against United Airlines in the United States District Court for the Eastern District of New York.

Mike Klemm, President and Directing General Chair of IAM District Lodge 141 said, “The lawsuit we filed today in Federal court seeks an injunction against United Airlines on behalf of the 27,000 IAM represented Fleet Service and Passenger Service workers to halt United’s illegal implementation of drastic pay and benefit cuts in violation of the Railway Labor Act and their agreement under the Coronavirus Aid and Relief and Economic Security Act  (“CARES Act”) to maintain the wages and working conditions of its employees through September 30, 2020, as a condition to obtaining $5 Billion in taxpayer dollars.

On May 1, 2020, United advised the IAM that “effective May 24, 2020… all full-time employees covered by the Passenger Service Employees Agreement and the Fleet Service Employees Agreement will be reduced to part-time status.”  While the effective date of this mass reduction is May 24, 2020, United has given affected employees only until May 13, 2020, to make an “irrevocable decision” whether to accept a reduction to part-time status; retire with no recall rights; separate from employment with no recall rights, or elect furlough with furlough pay and a right of recall.    United has directed that “Once you make your election… it is irrevocable, and you cannot change it.”  We are seeking to invalidate United’s unilateral demand that our members either agree to become Part-Time employees or hit the street.

United’s scheme to unilaterally “reduce” all employees to part-time status will substantially reduce their pay rates and benefits.  Pay rates will be reduced because employees who had been paid for a 40-hour week would now be paid at most for a 30-hour week which will reduce their benefits as well.

United’s decision to reduce every full-time IAM member to part-time is also a flagrant violation of the Railway Labor Act because it is being done without the agreement of the IAM.  United recognized it needed the IAM’s consent for this change. While the IAM has been willing to work with the Company through this difficult time, it refused this request which damages IAM members disproportionately compared to every other employee group at United.  In addition, United asked for and received billions of dollars in public funds based on its promise not to furlough employees or reduce wages and benefits. “For United to obtain federal funds under the false pretense that it would protect its workers through September and then turn around and do this to their most loyal workforce struggling to survive during this pandemic is unconscionable, “said Mike Klemm, President of IAM District Lodge 141.

CLICK HERE to view the full Court Filing >>

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The Furloughs at United are Illegal

The Furloughs at United are Illegal

May 5, 2020 | COVID, Featured, Front Page, Home, Home, Uncategorized, United | 8 comments

United management is violating the CARES Act and the RLA and purposely violating our contracts during this illegal, furlough from full-time to part-time.

I’ve been with United Airlines for nearly 30 years. I’ve unfortunately been involved with numerous furloughs, all of which were painful. However, this furlough is the most illegal, confusing and maddening.

My hope is this communication will help you understand, exactly, what your contractual rights are and how this furlough should be handled.

We Are Going to Court and Using the Grievance Process

First, as we previously advised you, we are in the process of filing a lawsuit against United in Federal Court to enjoin their illegal action in violation of the CARES Act and the Railway Labor Act by converting all IAM represented full time employees to part time. However, we do not know when or how the Court will rule. Accordingly, we must advise you to fill out the company’s form to protect yourself.

However, in addition to our position that the company’s conduct violates Federal law, it also is in clear violation of various provisions of our collective bargaining agreements. For instance, under Article 7 paragraph H of the Passenger Service Employee and the Fleet Service Agreements it outlines the furlough process. EVP of Human Resources Kate Gebo and the rest of United management is lying to you and attempting to frame this furlough from full-time to part-time as just a reduction in hours that you are accepting voluntarily. THAT IS BLATANTLY UNTRUE. THIS IS A FURLOUGH. If it wasn’t involuntary they wouldn’t have offered a voluntary COLA first, which forces people to perpetuate United’s fiction on their unemployment application.

In every state that we are aware of, this question is asked in some form: “Is your furlough voluntary or involuntary?” If you don’t say involuntary you run the risk of being denied unemployment. This is the jam United wants to put you in.

However, this will be less of a problem for many of us being forced to take an involuntary furlough later this month. Our contracts outline the process by which an involuntary furlough is conducted. When it becomes necessary to reduce the number of employees in any position and work status, the Company is required to give us 20 calendar days written notice. That sounds simple enough doesn’t it? Clearly, it’s not because United has not provided written notice to every employee affected by this furlough. This is a violation of our contracts.

The next step is all affected employees will receive an option form that they will have five days to complete. Employees requesting system options will receive an additional three days to complete the system option form and be placed on furlough status with applicable recall rights and furlough pay if they don’t return the form. Since United management has involuntarily furloughed every full-time fleet service and passenger service employee, there exists no system options to retain our full-time jobs. This is also a violation of our contracts. 

 

This leads us to our next step, which is filling out the form.

Option A states: Affected employees may fill a vacancy, or if no vacancy is available, may displace the most junior employee in your current classification in the alternate work status. So, if you’re full-time that allows you to fill a part time vacancy.

Option B states: Affected employees, who did not choose Option (A) above or chose Option (A) above but were not awarded a position, may choose to elect layoff with any applicable recall rights and furlough pay.

Option C states: Affected employees who are unable to maintain a position and were not laid off after exercising the above options may elect within the basic position within their classification to displace and/or fill, in order, up to the equivalent number of: (1) full-time vacancies; (2) probationary full-time employees; and (3) the most junior full-time employees on the system.

United Airlines, in addition to violating the CARES Act and the “status quo” provisions of the Railway Labor Act, has also flagrantly violated multiple facets of your collective bargaining agreements. If you fail to select any of these options, contractually, you are supposed to be placed on involuntary furlough. However, United management is purposely violating our contracts in a cynical attempt to scare, confuse and intimidate all of us. They have told you falsely that if you don’t select anything you will be placed in part-time status. This is also a violation of our contracts.

Brothers and Sisters I’m truly sorry for the inexcusable, illegal and premature actions United Airlines has taken. There’s NOTHING voluntary about what United is forcing us to do. Please demand a correct option form, as is required by your contract, and fill it out in the way that best serves you and your family.

Without prejudice to our lawsuit or our motion for immediate injunctive relief, I’ve directed all of my Assistant General Chairpersons, assigned to the United Airlines properties to work with your local committees to file grievances to protect your contractual rights of these blatant violations of your collective bargaining agreement.

 

Fraternally and in Solidarity,

Michael G Klemm

President and Directing General Chair,
District 141,
International Association of Machinists and Aerospace Workers
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Senator to United: Put CARES Act Money in Paychecks, or Give it Back

Senator to United: Put CARES Act Money in Paychecks, or Give it Back

May 3, 2020 | COVID, Featured, Front Page, Home, Home, MNPL, Uncategorized, United | 6 comments

Senator Josh Hawley issued a warning to United Airlines: use the $5 Billion of CARES Act money to keep your workforce intact… or give the money back.

In a series of Tweets, the Republican Senator from Missouri explained how he was approached by several IAMAW members as he was traveling back to Washington, DC. 

“I’m at the airport, flying back to DC, and multiple @United employees have told me the company is cutting their hours, pay & benefits immediately. This is AFTER United took billions in bailout money that was earmarked for workers. This had better not be true.”

Sadly, it is. United Airlines announced plans to slash the pay and benefits of over 15,000 full-time ramp and customer service workers, only days after accepting a huge share of the $50 billion allocated to airlines in the CARES Act. With public demand for air travel decimated since the onset of the coronavirus pandemic, Congress approved several aid programs designed to preserve the American aviation network and its highly skilled workforce. They recognized how important it is to be ready to rebuild quickly once the pandemic has subsided. Congress and the president made a choice to provide funding to safeguard civil aviation in the US, rather than try to recreate it later. 

“Airline workers are highly skilled, and irreplaceable without significant training,” said Mike Klemm, President and Directing General Chair of District 141 of the International Association of Machinists and Aerospace Workers. The IAMAW is the largest union of airline and aerospace workers in the world. “These women and men must pass rigorous training and safety requirements when hired, and must maintain and update their skills and clearances regularly. This process requires a significant investment from the air carriers and workers. You can’t just hire people who can operate on and around aircraft and passengers on a whim. Qualified candidates must be identified, trained, and cultivated over the years to build up expertise. The skill and dedication of airline workers are the reasons our aviation system is as safe and resilient as it is.” 

Congress agreed and set aside a huge chunk of the $2 Trillion CARES Act to safeguard the civil aviation infrastructure in the US and the women and men who operate it, throughout the COVID Pandemic. “The costs of rebuilding our transportation networks will be much higher than to simply unpause it,” Klemm said. 

Lawmakers who drafted and passed the CARES Act and its sister bill, the Paycheck Protection Act, have learned about United’s actions over the weekend. They are not happy. And, they are increasingly threatening to take action.

 

 

 

The outrage over United executives’ actions is bipartisan. Representatives from both major parties and both federal legislative bodies have sent statements of support for Machinists Union members who will be hurt by this decision.

Last week, US Representative Sheila Jackson-Lee wrote a letter to IAMAW District President Mike Klemm where she clearly stated the CARES Act money was not meant to buy new aircraft, buy back stocks, pay out bonuses or for any other purpose than to be distributed directly to United workers impacted by COVID-19. “ “It was not the intent of Congress for this program to be used as an economic bail-out, but to support the hard-working men and women who are the focus of United Airlines,” she said. 

IAMAW District 141 Legislative Director Dave Roderick credited the grassroots work of union members for getting the attention of lawmakers such as Jackson-Lee and Hawley. But, he stressed there is much more work to be done. “Our union is ramp and customer service agents – and a lot of other airline workers who love our jobs, and we want to keep them,” Roderick said. “Keeping our jobs right now means getting to work. It means calling our representatives, and making sure they understand just how shady United management is being. It means making sure that lawmakers know that we love our company, and the work we do. It means asking them to insist that company executives keep their word.”

Read the official letter from Senator Josh Hawley to United executives:

 

 

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May 2, 2020 | COVID, Featured, Front Page, Home, Home, United | 2 comments

Congresswoman Sheila Jackson Lee has come out in support of the airline workers at United Airlines targeted for furloughs by United Airlines after the carrier accepted billions in taxpayer-funded support to avoid job cuts. 

“The CARES Act and the Paycheck Protection Program was intended to make employees whole during this devastating time due to COVID-19,” Representative Sheila Jackson-Lee (TX-18) said in a letter to IAMAW District 141, President Mike Klemm. “It was not the intent of Congress for this program to be used as an economic bail-out, but to support the hard-working men and women who are the focus of United Airlines,” she said. 

Congresswoman Sheila Jackson Lee issued a formal letter to the union last week. 

United Airlines accepted an estimated $5 billion in payroll support funds through the CARES Act, part of a $50 billion aid package for airlines. In accepting the money, United executives pledged to postpone job cuts until after September. The goal was to keep skilled employees on payroll while preparing for harder times if a recovery wasn’t underway by the Fall season. It also allowed Congress to review and consider additional aid for the nation’s transportation network.

However, the day after accepting the funding, United announced it would need to cut payroll expenses. This week, the company plans to announce massive job reductions, including a plan to furlough all fleet and customer service agents to part-time, or by 45% of their total hours. 

“Airlines need to seek congressional approval to secure new routes, tax subsidies, and other important items,” said IAMAW District 141 Legislative Director Dave Roderick. “Airlines such as United will need constant support from lawmakers, for help with everything. Fuel, environmental regulations, noise abatement programs, seat sizes, safety rules… airlines need to stay mindful of how they appear to Congress and lawmakers,” Roderick continued. 

“Flagrantly laughing in the face of Congress – taking the money and running like this… it’s not a good look for a company that needs Congress as much as United does. United executives may think it’s smart business to snatch the aid from employees, but it’s not.” Roderick said. “Within days these same executives will be right back in front of lawmakers like Jackson-Lee, hat in hand, asking for help with something. These unlawful actions on United’s part will be remembered by taxpayers and lawmakers next time they need something.”

“If United goes ahead with furloughs in violation of the CARES Act or because they found some clever loophole, they will have a much harder time convincing Congress to give them more taxpayer help from now on.” 

This is the second time Congresswoman Sheila Jackson-Lee intercedes to assist airline workers with issues related to the coronavirus pandemic. In March, she played a key role in reducing dangerous overcrowding in employee parking buses at Houston Bush Intercontinental Airport (IAH). She also appealed directly to city officials in Houston for free and reduced-price airport parking. This effort reduced the number of bus riders by about 1000 employees per day, achieving better social distancing for workers. 

“We appreciate the help of Congresswoman Jackson-Lee,” said IAMAW District 141 President Mike Klemm. “She has been a great friend of our union and airline workers for years. She fights every day to make air travel safer and more reliable, and we respect that.” Jackson-Lee represents the 18th Congressional District in Texas, which includes the area surrounding Houston’s IAH airport. 

Klemm also praised the steadfast lobbying work of union members, saying, “This is what solidarity looks like.”

“Despite United Airlines’ blatant disrespect for their employees, I want to thank our essential front-line members,” Klemm added. “These are the people who risk their health to reunite families and keep healthcare workers and critical supplies moving during these challenging times. While our country thanks and salutes our essential workers, United Airlines shows it has a different philosophy on how to treat theirs. Those with power should keep their word to the essential and front-line workers of this country.” 

You can read the letter that Representative Sheila Jackson Lee sent to District 141 PDGC Mike Klemm HERE>

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“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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