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
Print and post on all IAMAW bulletin boards.
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nicely said eric price!!!!
You need to get on CNBC today and explain your position. Contact Phil LeBeau who covers the transportation sector for CNBC out of Chicago. You have influence, USE IT!
Dear, Anonymous, aka Too Skeert to Say Your Name:
It’s cute that you didn’t know that employees are the. union. It’s also cute that you think that unions collect dues instead of pitching them in. If you want a “full refund” please return the $30 an hour and all the furlough fighting that you are getting for those dues, and carry your weak ass to Delta or JetBlue or one of the non-union airlines so you can get laid off, but won’t have to be a part of any unions. Oh wait… you want union wages and a union retirement and union work rules… you just want someone else to pay for all of it. Got it.
Go work somewhere else, son. We don’t need you here, and you don’t want to be union. Go get a non-union job and relieve some of the payroll burden that United is facing – and save a union job for someone that can appreciate it.
Is this the IAM Useless? IAM kicks and screams like they are going to do something about this involuntary part time. Like take them to court? What happened? I read the complaint Senator Josh Hawley and its the Employee’s that are informing the Senator not the Union! What exactly do you do except grab union dues? Are you at least going to reduce our dues to reflect our loss of income due to the incompetence of your representation of us? We should get a full refund since the IAM was forced on us.
What is the duration of FT to PT? Was that discussed? If we lose the in court are there plans to discuss a guarantee that once this crisis is over and company once again on uphill tick that all FT will be reinstated ?
So let’s focus on the next bid
Are you going to allow FT and PT bid together so a more senior PT employee can bid more hours than a Current FT employee?
What about are CARP?
As President Klemm said in one of his communications to the membership it’s not about whether anyone can or can’t allow this to happen. This is a blatant violation of our contract and no one is able to sanction that without a vote by the membership. The Union asked this Company for time to explore this idea, review proposals on it by the Company and then possibly take it out for a vote. Kirby and his gang wanted no part of this. This is a furlough, no matter what the Company says, and there are no provisions in the contract for part time employees to be segregated for bidding purposes. By the language of the contract everyone must bid on one part time bid.
Ok is the union going too allow me a FT employee to be put in a Bid with PT employees and allow a more senior PT employee bid my 30 hrs?
Let’s talk about protecting our CARP as well!
go get them mike!!!! why dont they pare the exectives starting with gebo and her relations????
Finally!! Somebody that I can trust that has our best interest!! Every thought on my mind was just answered by your words. Get’em Mike!!
Discriminations is what comes to mind, company choosing to pick one group. Clearly the two groups, full-time and part-time is defined in the two work groups. With the company choosing to reduce the hours of only full-timer could be clearly argued by way of the unions lawyers to the judge. The company is clearly discriminating between the two define work status groups. Please share to the union lawyers to look into. Mahalo and Aloha
All these comments lead to what needs to be done. There needs to be genuine agreement with the company & our union. The company got all that taxpayer $$$ and needs to live up to the terms of the Cares Act. No furloughs or benefits cut with our union willing to negotiate a good modified wage program so fulltimers can stay whole
Seems like there could be an age discrimination law suit here. The company is clearly going after full time because we are the highest paid in our group, but we are also an ageing work force where most of us are close to retirement, which may give us some ground for legal action. Maybe the union could consult an employment lawyer on this matter. I seen it work before and was actually part of a class action on age discrimination where the airline settled out of court. We as an aging group have a lot to lose not just wages but our pension payments will be much lower. And if we take early retirement they are reduced even more.
Also United is so top heavy with middle and upper management who make a lot more money then us. We don’t need near as many of them and they have no contract. Why is it always us who get beat on the most.
Kirby never served a day in uniform, born and raised as a corporate raider.
My response to Mr. Hart’s letter: You state that “…many hours trying to negotiate a consensual, more favorable agreement…” with the IAM leadership for a consensual agreement fell through. Judging from the decisions you made the question for me is, more favorable for whom? Basically what you are saying is that if it weren’t for the IAM you’d had something better for employees than what was decided for us today. This is so disingenuous and, if true, spiteful.
Mr. Hart was never involved in any discussions with the IAM. His information is either flawed or just plain deceitful. His communications and other Company mouthpieces are merely designed to turn the people being affected against the IAM and take the heat off of themselves. It’s an old and classic battle plan. Who survives if two groups are fighting each other in a burning building? NO ONE!!
thank you for your support Jo
Anonymous, How did that ESOP work for you? Pilots and others got paper divorces and cashed out when everyone else got holding worthless stock.
The key word here is “INTENT”. What was the intent of the CARES Act ? It was intended to protect the paychecks of the workers. The company CHOSE to take the taxpayer’s money, but doesn’t want to abide by the terms of getting it. The company wants to have it both ways, and write their own rules for compliance with the terms, and intent of the Act. The company may be able to exploit a loophole in the wording of the Act, but doing so violates the spirit of the intent of the Act. Congress will stop the company from getting away with this, if WE are ALL vocal enough !!! The time is NOW !!!
Blake you are spot on. AA CEO just came out and admitted that UAL is wrong and they were in the meeting with UA and that wasn’t the intent of the Cares Act. Our members have filed over 200 grievances today alone over violations of Article 7. Several more Senators and Congressmen are preparing to send letters of rebuke to Mr. Kirby and Mr. Munoz over their reprehensible behavior and most importantly we filed an injunction in Federal Court today to seek help from the law. The IAM is leaving no stone unturned but we need our members to stand together and fight to protect our Contractual language.
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.
If all f/t are being furloughed to p/t does that mean working leads become agents and not leads
Kw
Jollyroger, this week we’re calling federal representatives. We’re still willing to negotiate. Please share any ideas.
If there is anytime for a strong Union to fight, the time is now. Country was built on manufacturing and a strong Union.
The IAM needs to quit the talk and do something.
Very insane indeed