206321

Glad to see someone calling him out.

https://www.forbes.com/sites/tedreed/2020/05/05/american-airlines-ceo-says-united-cannot-legally-shift-workers-from-fulltime-to-parttime-sources-say/#ddf34356efdfIn a labor-management telephone meeting Tuesday, American CEO Doug Parker said United is incorrect in saying that it can shift workers from full-time to part-time after accepting the grant. “Some airlines think it is OK to go and cut employees’ hours,” Parker said, according to notes and recollections from two people who listened to the meeting but asked not to be named. “One [airline] is cutting full-time from 40 hours to 30, a 25% cut in pay,” Parker said. “I was there when we were working on CARES and that wasn’t the intent or meaning of it.

“And that is not just for union employees – it is for non-union, too,” Parker said, according to the two people. “We disagree with [United’s] position, and if anyone asks, we will let them know we disagree with their position. “

United said Friday that it plans to shift about 13,800 workers, including fleet service workers and passenger service agents, from full-time to part-time on May 24. The workers are members of the International Association of Machinists, which represents 28,000 workers at United, making it the largest union at the carrier.

At American, IAM and the Transportation Workers Union jointly represent about 31,000 mechanics and fleet service workers. Under the CARES Act, United has accepted a direct grant of $3.5 billion to pay employees through Sept. 30. Labor unions including IAM were involved in drafting the language of the bill and guiding it through Congress.

As a condition of taking the direct grant federal funds, air carriers are prohibited from cutting airline workers’ pay and benefits and from laying off workers until September 30. In a May 1 letter, United Executive Vice President Greg Hart wrote that effective May 24, “in full compliance” with both its IAM contract and the CARES Act, all passenger service agents and fleet service workers “will be reduced to part-time status.”

“While our contract allows for a reduction of full-time employees all the way to 20 hours, we will commit to an equivalent number of 30-hour bid lines,” Hart wrote. He said employees can request layoffs, separation or retirement.

Parker and United President Scott Kirby, who will become CEO on May 20, were once close associates who together went from managing a small carrier to running the world’s biggest airline. They began working together at America West Airlines, where Parker was hired in 1995 and Kirby was hired in 1996. Together, they engineered a merger with US Airways in 2005 and a merger with American in 2013. But in 2016 Parker asked Kirby to leave American in the midst of executive suite intrigue regarding succession. Tension between the two men has continued.

Previously, IAM has said that both Delta and JetBlue also violated the CARES Act by forcing pay concessions from workers after taking grants.

“At Delta, thousands of workers are being forced to work fewer hours per week without pay,” said said IAM District 141 and 142 Presidents Mike Klemm and Dave Supplee in an April 23rd letter to the two airlines’ CEOs. “At JetBlue, workers have been forced to take 24 days of unpaid leave from now until September 30, 2020.”

“The grant money that you demanded and received was calculated using these workers’ compensation and is meant to maintain their salaries and benefits through this crisis,” Klemm and Supplee said.

LeeFXDWG

Perhaps Parker doesn’t have the option with his tech ops and CS contracts.

Who knows?

While I feel for the UA folks that are going to be impacted by the company’s move, if it’s in their contract pre CARES Act, they need to look in the mirror and ask why.

Take our current displacement set up. It is in effect a flush bid with the exception of no secondary/tertiary displacements due to being a “reduction” mode displacement. For those that trigger into a new seat prior to 1Oct, their pay rate will go to that new rate. It’s in the contract. Sucks but is. However it isn’t a non contractual reduction in pay. That’s the difference.

Lee

O2pilot

He just doesn’t have this option in his labor agreements. American is hemorrhaging cash right now and they are trying to make us bleed cash as well. I’m surprised he hasn’t complained about our displacement bid and all the money its going to save the company.

Otherwise he wouldn’t care.

El Peso

UAL “Hemorrhaged” $1.7B in Q1.

Poss

$1.7B is chump change compared to 18 years ago.

Surely Dougweiser cares about our employees. Why would he say such supportive things? Have we received all the CARES monies yet?

It all brings a tear to me eyes after the thrills of the ATSB days.

When we come out on the other side of this I hope Scooter returns the favor to Dougweiser.

O2pilot

Yes, but they are getting in under control and have a far lower burn rate than American. Especially now with all the gate agents going to part-time and the aggressive cutting of flights. Burning $25M per day less than American. Would hate to be over there right now.

N6279P

Another American pilot coming to the UAL forum to degrade a former executive? Yawn.

horrido27

I will admit that I am totally confused now!
I initially thought I'm pay protected as a 756 at blended rate until (IF) I go to Airbus school. Then the union put something out (I believe Sat) that made me think I'm screwed and go to Airbus 12yr FO rate as of 1 June.
Then tonight BQ (or one of the other guys) had a slide up and I could have sworn they said.. June OR whenever you start IOE.. which ever comes later.
But now you posted that ^

What happens to pay for -
Me?
A 787 FO bumping down to 73/guppy FO?
A 756 Capt bumping to Triple or 78 FO?
A 73/Guppy Capt bumping to 73/Guppy FO?

I hate to write this.. but we need to start seeing some 'examples'

Also.. I get bumped to Airbus FO. A 2yr 78 FO gets bumped to Airbus FO and the next person junior to me gets bumped to Airbus FO?
Who goes first? I was always under the impression that it went by seniority order unless the 2yr person already had a furlough notice. After tonight, not sure about that anymore.
If I go before the other 2.. I believe I'd still be pay protected on the 756 rate, correct?

CRAZY F'ing times~
Motch

PS) Thanks for what you're still doing for the pilot group!

Sixty N Two

“he can’t do that to our pledges!”
“Yeah, only we can do that to our pledges!”

206321

I think the intent is to stick up for all of the UAL employees getting fleeced out of their bailout. Taxpayer dollars not going to where they were intended to.

I am sure pilots would be ****ed as well if your min guarantee was unilaterally cut 25% even though congress gave you funds to cover it all.