This Says It All! "how To Bust A Union!"

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Jan 24, 2004
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Saturday, October 30, 2004
Bankruptcy, Overcapacity and the U.S. Airline Industry
By Seth Sandronsky

Do you recall the “new†economy hype of last decade? Its cheerleaders claimed that the American business cycle was over. With the luxury of hindsight, we see the foolishness of that claim. On that note, consider the U.S. airline industry today. Its revenues are down. Expenses are up, led by rising oil prices. So domestic carriers are slashing their costs by any means necessary. This process brings into clearer view the social conflict between airline employers and employees.

Currently, there are too many airline flights for too few business and leisure customers. The NY Times of Sept. 14 reported that airline overcapacity “is plaguing the industry.†Overcapacity is a condition in which more goods are produced or services provided than can be sold to buyers. Air transport is a service. Overcapacity is not a condition of nature but a consequence of a certain social formation.

In the meantime to stem the red ink, U.S. carriers are cutting jobs and employee costs for the present (wages) and the future (pensions). US Airways and United Airlines are using bankruptcy protection law as a weapon against their work forces. Delta Air Lines has chosen the threat of a potential bankruptcy to convince its pilots (the only union employees with the carrier) to accept lower pay and pensions.

Some 110,000 airline workers at the major carriers have lost their jobs since the East Coast terrorist attacks. At the same time, the federal government (Air Transportation Stabilization Board) rushed in with financial help for these carriers after Sept. 11, 2001. The federal government is also helping airline owners to squeeze their work forces. Recently, a federal bankruptcy judge ruled that US Airways can void the union contracts of its employees. They get no vote in the matter. According to the NY Times of Sept. 24: “Bankrupt companies are allowed to seek emergency cuts under Section 1113 of the federal bankruptcy code. The code also allows a company to ask the bankruptcy judge to set aside labor contracts and impose permanent, less-generous terms.†Such are the rights of unionized workers under American democracy!

We turn from anti-labor actions by the federal government to private capital markets. American Express has lent money to Delta, which may file for bankruptcy, the carrier’s CEO says. Tentatively, Delta’s pilots have agreed to wage cuts followed by a wage freeze through 2009. The carrier’s share price rose on this news. General Electric has lent to US Airways. Presumably, GE is pressuring the carrier to lower its current and future labor costs. When lenders and shareholders speak, debtors listen and act. Airline workers get downsized and outsourced. For instance, United just announced plans to close a reservation call center in the U.S. and move that work to India.

Crucially, overcapacity is not unique to the U.S. airline industry. Currently, the domestic auto industry has a growing inventory of unsold cars. Dealers are slashing new car prices to try and attract buyers. Last decade, overcapacity hammered the U.S. telecommunications industry. Some 2.5 percent of the underground fiber optic cables installed by companies in the 1990s were being used by early 2001. An example of overcapacity can also be found in the rise of the U.S railroad industry. Wall Street fueled over-investment that led to the build-up of rail capacity and bankruptcies in the 19th century.

In brief, corporate over-production and under-utilization are built into a capitalist economy. The “why†of this is due to the very nature of investment itself. Capital investment increases the capacity of a company. Investors expect their capital to grow. Yet the future demand for what a company can sell can’t be predicted. What people actually need to thrive at work and in their daily lives is secondary. Investors’ drive to realize a return on their capital is primary.

The airline industry, like capitalist industry generally, exists for a single purpose—to produce a surplus for a wealthy few. That surplus is commonly called profits. A labor process that compels people on the pain of starvation (unemployment) to produce a surplus that increasingly flows away from them also creates conflict. Thus employers and employees face each other antagonistically. We see these relations more clearly when the business cycle turns sour. Today in the U.S. airline industry, lenders, owners and shareholders are trying to protect their capital by breaking unions, with a big hand from the judicial arm of the federal government.

As you read, the living and working standards of those who labor for domestic carriers are being driven down. The effects of this may likely push the nation one more step towards becoming a low-wage economy. If current labor trends continue, the U.S. working majority will experience less personal and social stability. This is something to ponder amid the political rhetoric leading up to Election Day and beyond.



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Seth Sandronsky is a member of Sacramento Area Peace Action and co-editor with Because People Matter, Sacramento’s progressive paper. He can be reached at: [email protected].

More from Seth Sandronsky http://www.pressaction.com/news/weblog/listing/C78/


Comments (1) http://www.pressaction.com/news/weblog/comments/1194/
 
Overcapacity, more hype?


We keep hearing that there is too much capacity. Well is there? What are the load factors? Are all the planes flying empty? Well not out of New York they're not! When I go through the terminal it's usually packed, I doubt that people come here to just hang out.

The fact is the airlines are a transportation service, one that the government is trying to make like regular mass transit, cheap and reliable, but at our expense.

Let me ask you something, does every train or every bus run at 80 to 90% full? Are they expected to? But its still cheap to take a bus or train. And they still run and I have not seen too many companies that provide cheap city transportation go out of business.

Its unreasonable to price transportation services where it requires 100% load factor at all times to make a profit.

So is all this talk about "overcapacity" just more hype? What are the figures and how do they compare?

Look at these Load factors;
1997=70.4%
1998=70.7%
1999=71.0%
2000=72.4%

So during the best of times we saw a 72.4% load factor for the industry.
 
Who needs bankruptcy? Our union here at AA has been busted since 1983! In fact, our "union" is helping to bust the other unions at the other airlines. :rant:
 
Checking it Out said:
Looks like an example of Amfa philosophy! Union busting tactics at its best!
[post="196778"][/post]​

CIO:

Could you define what a union is?

What is the purpose of a union?

What does the AFL-CIO constitutional Preamble say?
 
Buck said:
CIO:

Could you define what a union is?

What is the purpose of a union?

What does the AFL-CIO constitutional Preamble say?
[post="196788"][/post]​


He must be waiting for a reply from Gless who has yet to learn the answers at the Meany School!
 
Checking it Out said:
Looks like an example of Amfa philosophy! Union busting tactics at its best!
[post="196778"][/post]​

What do you know of any union let alone a craft union? you & your fellow alias using twu supporting cowards still can not answer my question in the DEMOCRACY thread.

The twu... where our only supporters are afraid of stating their name because they do not believe in our constitution and actions enough. :ph34r:
 
Ken MacTiernan said:
What do you know of any union let alone a craft union? you & your fellow alias using twu supporting cowards still can not answer my question in the DEMOCRACY thread.

The twu... where our only supporters are afraid of stating their name because they do not believe in our constitution and actions enough. :ph34r:
[post="197706"][/post]​


So every alias using person in these forums are TWU supporters? Guess you're a bit outnumbered and about to irritate a few amfa supporters.
 
Nightwatch said:
So every alias using person in these forums are TWU supporters? Guess you're a bit outnumbered and about to irritate a few amfa supporters.
[post="197728"][/post]​

I never said all alias using posters are twu supporters. How would I irritate my fellow craft union AMFA supporters? They all know who I am, where I work and many have even met me in person when I have flown to events that require support for the defense of our profession. You can Goggle my name and even read what I stand for.

Busting a union requires people who are anti-labor to remain in the shadows. Much like yourself. ;)
 
Ken MacTiernan said:
I never said all alias using posters are twu supporters. How would I irritate my fellow craft union AMFA supporters? They all know who I am, where I work and many have even met me in person when I have flown to events that require support for the defense of our profession. You can Goggle my name and even read what I stand for.

Busting a union requires people who are anti-labor to remain in the shadows. Much like yourself. ;)
[post="197734"][/post]​

You can Google my name, you got to be joking me. Anti-union? Busting a union? You need to come inland and clear your head of the salt intake. You might start a homepage and strike a keyboard for your profession, but you're no union man.

I find fault in the TWU, and I contact the appropriate members to get answers. And as is so diligently rendered here, "a union is only as strong as it's membership", so by your actions of promoting AMFA onto the floor at AA I would say you're the union buster, not I.

What bothers you deeply is that not everyone is infatuated by your name, nor do people care if others use alias'/monikers/AKA's, just you, the true coward of our profession.

Now, go Google yourself.
 
Received: 11/03/04 11:40:15 EST
Name: jason
E-Mail: WHATS THE DIFFERENCE
Employer: BETWEEN AMFA
Location: AND THE IAM !?!?!?!?
Message:
CAN ANYONE TELL ME AMFA IS NOT CORRUPT?

I didn't believe it when people told me a few years back that AMFA would turn out just like the IAM. Now I really wonder. The BOYS at the top of amfa dont want to be voted out so what do they do when they are voted out???? - They contest the vote and get a NEUTRAL PARTY to investigate.

WHO IS THIS NUETRAL PARTY???? - seham and seham - The lawyers for AMFA (who are buddies with the BOYS AT THE TOP).

They dont like the outcome of the MEMBERSHIP VOTES so have the election overturned and call for a RE-VOTE!!

THIS IS NO DIFFERENT THAN WHAT THE IAM DOES WHEN IT DOESN'T LIKE THE OUTCOMES OF ELECTIONS

I AM PISSED!!! AMFA, YOU ARE LETTING ME DOWN!!

SOMEBODY, PLEASE SHOW ME WHERE THERE IS ANY HOPE ANYMORE!! I figured at least with AMFA there was some hope. No longer!! THE AIRLINE COMPANIES ARE GOING TO WIN!!

NOW, I CANT EVEN SUPPORT AMFA ANY LONGER. I GUESS WE WILL GET WHAT WE DESERVE!

Im sorry to all those who had faith in us (AMFA)!!!

tm, this is an AMFA political post. I hope you can post it.
 
nw, "so by your actions of promoting AMFA onto the floor at AA I would say you're the union buster, not I."

You really must be old and feeble. I support my craft & profession. That means fighting against lies and more lies spewed by the twu and their boot lickers. The twu is the real union buster. Let's see, the twu claimed we took, (little accepted) concessions to save jobs. Now, these jobs are going to be laid off and we have the added insult of the concessions. Close your eyes tighter, reality will stay away that way. Keep posting, it will only show how bad the twu is with people like you supporting them. By the way, was your job saved with the concessions only to be laid off with the new lay offs?

The twu... where we do what the company says.
 

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