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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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.

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