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;
-
Allow 12-month COLAS that continue to pay employees 25% of their salary.
-
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.)
-
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
Please print and post on all IAMAW bulletin boards.
Get printable copy >
why didn’t the company furlough all employees with less than a year seniority?
In the even we lose court battle- Was there an end date to this, such as once company sees uphill tick ? There should be some sort of guarantee that all who are /were WILL return to FT status .
Mgmnt is putting us between a rock & a hard place. They’ve said the VSP that week be offered ONLY if we volunteer for PT, will not include a buyout. Why not make it 32 hrs so we can keep FT classification? Is it because once we agree to 30hrs, they’ll quickly change it to 20? I smell something rotten.
cut the fat from management!!!!
president trump on fox sunday night town hall meeting live, let him know put these crooks on the spot…email fox news the situation,,,,,,,
No disrespect to anyone. but when ramp and customer service part-time employees hours were cut from 30hours to 20 hours system wide, to save money. not one union rep or official said anything. now that it is affecting the full-timer employees, the union rep have a lot to say. we all sacrificed the same, but unfortunately our union fight more for the full time employees more than anything. I wish you guys the best but welcome to our world.
American used some off bailouts. Money to retire people united will give our Board ours. Along with Oscar sitting on it. Dark days and end off United has arrive. That came from American Scott Kirby in charged.
why did the company say “in full compliance with the provisions of the CBA and CARES Act,” is this true that means our contract is null
Jebh, every single person taking pay cuts, pay or hours reductions as a result of the United decision are IAM. We ARE sacrificing. Are you?
As for dues – how are we airline workers going to fight these furloughs without paying for anything? Lawyers cost money, son.
The more you know…
What I would like to know is “What has the IAM done as far as their personnel taking any pay cuts, pay or hours reductions, or CUTS IN DUES?” The rest of us are sacrificing. ARE YOU????
I think the company should do an ESOP (Employee Stock Option Plan) where the employees will own %51 percent of the company for their pay cut for two and a half years.
The only thing that makes sense is a worthy buyout by the end of the year with a cash amount attached to it….
Let a Judge decide, waiting for Union lawyers to file an injunction.
the end of my comment has been deleted. shame on you.
Please consider a buyout.
So many people are ready to retire.
We need to pay our dues.
Because we need to pay to fight furloughs.
Mike schedule interviews on any television news outlet you can, then get the story out illustrating how United is violating the spirit of the paycheck protection act. Convict them in the court of public opinion. If they truly are attempting to circumvent the “no involuntary furloughs or reduced pay rates in the U.S. through September 30, 2020” by reducing full time to part time they are clearly trying to “loop hole” their way out of their commitment to the American taxpayer and are in clear violation of the act itself. Don’t let them control the story. Oscar wants to sit back and say’ we didn’t furlough anyone,everyone who wants to work is able to. we didn’t touch rates of pay ‘. This ploy is an obvious semantic twisting of the language anyone can see . I don’t know if Oscar is going to reduce full time to part time before Sept.30, the tenor of your latest letter suggests to me that you either know or suspect that he is.
I was very encouraged by your initial letter in response to the reduction rumor. it was strongly worded and threatened to seek recourse in the courts.
Love the medical bridge for retirement at current rates for 55+ and a small cash out would definitely cut the workload.
2 decades of this BS yet still haven’t reached the retirement qualifications, suffering the same financial harm as the 15K that Scott/Oscar just hired…WHY? We have always been all about SENIORITY – furlough new hires with less than 5 years, reduce FT to 32 hrs and PT to 16hrs –
Why are they only coming after Ramp and CS? Will they come after the other groups that make more than us?
We need cut union dues….union need consider this under this serious situation .
How about furlough the 15K that Oscar/Scott said were just hired this year? – we have always been about SENIORITY. For those of us not-quite eligible for retirement yet have weather 2 decades of stormy skies, why should we suffer the same financial harm as someone with less than a year seniority?
The unanswered questions are: 1) Can a company legally do this to unionized labor under the CARES Act ? If the answer is NO, then be ready to seek an injunction as soon as notice from the company is received. 2) Can contracts now be abrogated OUTSIDE of bankruptcy ? YES or NO. Also, the total dollar amount of any concessions should be equally split between ALL unionized work groups. Pilots, Flight Attendants, Mechanics, Ramp, and Customer Service. I question the monthly cash burn numbers from the company. Insist on an audit process.
Mike ……. if they do reduce our full-time hours why would we go to 30 when it would be simple -8 from 40 would be 32. That would be giving the company 4 days a month.
Why can’t they do something like full time 32 part time 16 so it spread through the whole work group and not just full times taking the whole hit
We want a buyout.
What is the Union proposing if hours are cut to 22 hours. Is IAM going to freeze or waive dues? Recalculate dues? Inquiring minds want to know.
Tell the company to offer us a buyout like American did
United’s always trying to ride on Deltas coat tails. Why aren’t they suggesting doing what they did to their full-time employees. Work them 4 days a week at 8 hours a day. So 32 hours instead of 40.
How will Union dues be calculated? If hours are reduced, and will dues be waived in these turbulent times.
Where do you think United can come up with this money to give you all a lump sum? Should we involuntarily furlough some, to have the funds to offer buy out packages for others?
Offer a buyout package I’ll be gone tomorrow
For the people thinking retirement offer something do we can leave with some sense of dignity and for helping a fellow worker keep hers or his job?
Offer some incentive for employees who’s thinking bout retirement
If they offer tax free lump sum I’ll leave right now……………
Hi mike.
If they choose to bridge medical to employees 55 above. I would appreciate if we could try to have them credit our unused vacation time to our sick bank to help bridge our medical. The company would save money now by not having to pay us all out at once.