IAM Voices Support for UA LCC

UnitedChicago

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Aug 27, 2002
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Machinists Voice Support United Airlines'' Plan for Low-Cost Subsidiary
February 18, 2003 3:07pm
Feb. 18--United Airlines'' largest union believes management''s embattled proposal to launch a low-fare subsidiary could be the only viable option for the company, according to a posting on its website.
The position of the International Association of Machinists -- which has not publicly commented about United''s bankruptcy reorganization -- conflicts with the stance taken by United''s other major unions.
The Association of Flight Attendants and the Air Line Pilots Association have publicly voiced adamant opposition to the creation of a discount carrier.
But a low-fare operation could prove to be the only viable alternative to a competitively irrelevant, shrinking UAL (United''s parent), Randy Canale, president of IAM District 141 and the union''s representative on UAL''s board of directors, wrote to union members.
Canale added that he has had limited discussions with United about the separate carrier.
Such discussion thus far could best be characterized as the company ``thinking out loud'' at the bargaining table about how to make it work for all stakeholders, Canale wrote in the letter, which was published on the IAM District 141 website Friday.
Union spokesman Joe Tiberi couldn''t be reached for comment Monday.
The IAM represents 37,000 United employees, with District 141 representing about 25,000 of those workers, primarily ramp and customer-service employees. IAM District 141-M represents the other 12,000 workers, all mechanics.
United, which filed for bankruptcy protection in December, has said it must create a low-fare subsidiary to compete with the growing presence of discount carriers such as Southwest Airlines.
The pilots and flight attendants unions believe the separate operation would eat away at the company''s core business. They''re also concerned that creating a subsidiary with a separate set of workers would lead to more layoffs and wage cuts for current employees, who already stand to receive substantial pay cuts as part of United''s efforts to reduce annual labor costs by $2.56 billion.
In his letter, Canale also took some IAM District 141 members to task for voicing displeasure about the expected pay cuts.
The union has repeatedly reported that UAL must dramatically reduce its costs, including labor costs, in order to survive bankruptcy, Canale wrote. Yet some members still fail to grasp this simple, obvious truth -- we all must sacrifice, or UAL fails. Some may think that the necessary sacrifice should begin and end with someone else, but that is wishful thinking.
United spokesman Jeff Green declined to comment on the IAM''s stance on the low-fare carrier.
Green confirmed that United chief executive Glenn Tilton will visit Denver on Thursday to speak about the company''s new business plan.
Tilton visited Los Angeles, San Francisco and New York last week and was originally slated to travel overseas this week.
I am going to be scheduling domestic visits this week -- rather than traveling abroad because I want to continue this dialogue with you here in the United States before I then schedule trips to talk your colleagues in Europe and Asia and Latin America, Tilton told employees in a taped message on Monday.
 

cat 111

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Aug 25, 2002
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The IAM is only looking for dues.Look at what they did at Usair !!! They SUCK !!! I hope Usair and United VOTE THEM OUT.
 

synchronicity

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Nov 27, 2002
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[blockquote]
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On 2/18/2003 7:42:43 PM wts54 wrote:

They are sellouts and hopefully we will

vote them out.
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[/blockquote]

And what, pray tell, will AMFA do? Refuse to accept any wage cuts or work rule changes for UAL mechanics?

-synchronicity
 

geeman10

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Dec 1, 2002
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GEE I THOUGHT I WAS THE ONLY PERSON WHO NOTICED THAT ABOUT THE I.A.M ....GEE UNITED PAY CUT??...THEN INCREASE THE UNION DUES....GREAT JOB BOYS
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DCT JVL

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Oct 7, 2002
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[blockquote]
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On 2/18/2003 9:58:07 PM wts54 wrote:

did i say anything about not taking paycuts?? ----------------
[/blockquote]

All except the infamous 100% pay cut. When that one comes around, you can say no all you want, but it isn't going to help.
 

DB Cooper

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Aug 20, 2002
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At this point it makes no difference who your bargaining agent is. The unions and employees are merely along for the ride. UA management has seen what David Siegel has accomplished at USAirways. Mr. Siegel has extracted massive cuts in wages/benefits from the unions using fear, intimidation and the threat of Ch.7. USAirways has filed a motion to replace the ALPA pension plan. It is likely that UA management will pursue the same course. The UA labor struggle will be a watershed event that is being closely monitored by the other major carriers seeking labor concessions. If the unions can persuade UA to staff the LCC with union employees from the current seniority lists, the unions will negotiate another "B" scale CBA for those junior employees and thereby keep the dues flowing. Everything is a trade-off, the junior people will "sacrificed" to the LCC to preserve jobs. If the unions cannot negotiate a suitable B scale, UA will simply outsource the majority of the LCC and massive layoffs will occur.
 
Aug 20, 2002
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Valhalla
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[blockquote]
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On 2/20/2003 10:24:29 AM Segue wrote:

I think maybe it works this way:

1) You get furloughed.

2) You can choose to apply for a job at the LCC.

#1 is involuntary. #2 is your choice.


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[/blockquote]


Straight out of Frank Lorenzo's playbook!!

Is this why is UA paying $1mil per month to McKinsey Consulting?