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Oct 27, 04, 5:18 pm
http://www.zwire.com/site/news.cfm?BRD=1675&dept_id=18171&newsid=13231319&PAG=461&rfi=9
TINICUM -- Minutes after calling a US Airways proposed contract "absolutely atrocious" Tuesday morning, Bob Boland, president of the machinists union, ripped up the proposal and threw it into the air to a round of applause from hundreds of union members.
The International Association of Machinists (IAM) Local 1776 had planned an endorsement ceremony at their headquarters for incumbent Republican U.S. Sen. Arlen Specter, but the event turned more into a pro-labor demonstration as union leaders rallied members against the proposal and urged them to unite.
The US Airways proposal so angered one elected official, he publicly called it "crap" at the meeting.
Among other things, the proposal would further slash a temporary wage cut enacted earlier by federal bankruptcy court, effectively cutting the baggage handlers’ wages by 23 percent.
Saying it is the "fight of our lives," Tony Armideo, the trustee of the union, told members he believes "we are not going to take a contract that absolutely slices our own throat."
The proposal was given to the bargaining committee at 6 Monday evening. IAM Local 1776 represents more than 3,000 employees from Atlantic Aviation, British Airways, Midway Instrument, Northwest Airlines, United Airlines and US Airways.
After the meeting, Armideo said the US Airways proposal would be a "death sentence" for members of the union.
After US Airways filed for Chapter 11 bankruptcy Sept. 12, a federal judge ruled the company could temporarily slash employee wages by 21 percent and cut pension contributions from 5 to 3 percent to allow the company to recoup $49 million in federal loans it borrowed to stay in business.
This proposal is the company’s plan to recoup the remaining $49 million deficit, union officials said.
Yet, union officials say workers have twice made concessions in wages and other benefits to keep the company afloat and charge gross mismanagement at the highest levels has led to the company’s bankruptcy.
"Our top (pay) rate has basically gone from $19.64 an hour. Under the imposed (court ruling), we now work for $15.40 an hour, so you’ve basically already taken off over $4 an hour," Armideo said.
Under the US Airways seven-year proposal, employees would have to work an additional three years (from 11 to 14) to reach top level pay, which would max out at $15.20 with no grandfather clause for employees at the former top-level pay scale.
A 1-percent raise would go into effect in 2008, 2 percent in 2009 and an additional 1-percent raise for each of the two succeeding years.
US Airways would maintain the current 3-percent pension contribution.
However, Armideo says the real "death threat" is the outsourcing language in the proposal, which reads, "The Company reserves the right to contract any or all work covered by the CBA (Collective Bargaining Agreement), if by doing so, the Company is able to accomplish the work more economically."
US Airways spokesman David Castelveter said the employees should look at the bigger picture and echoed the union members’ sentiments that the company is also fighting for its life.
Strong competition from low-cost carriers, such as Southwest, has severely damaged the legacy carrier, according to Castelveter.
"We recognize this is an extremely difficult time for every employee because every employee in this company is going to be working harder, working with less and making less. But given the alternative, it’s the only choice we could make," he said.
"Has this been brewing for a long time? Yes. Have we been able to control those costs? No. We have some of the most rich labor agreements in the industry and we have, and are, doing something about it."
Agreements with the pilots and the transport workers unions were ratified by the bankruptcy court Monday, Castelveter said.
If the US Airways proposal is not accepted by Local 1776, a bankruptcy court judge would review the case and impose employee wages and benefits.
While the union has a legal obligation to put the proposal to a vote by its members, union leaders are doubtful it will pass.
Despite their anger over the proposal, Armideo ruled out the possibility of a strike.
"There isn’t going to be a strike, we’re trying to go back to the company," he said. "If we don’t negotiate this, it will be used against us in the next part of bankruptcy."
During the rally, Boland denied published reports of an intentional worker slowdown.
"It’s absurd for anyone to think we have any kind of job action going on," he said. "We don’t need to do that, management’s done that for us."
Castelveter acknowledged management has not always made the right decisions in the past, but insisted the airline’s economic woes stem from the changing marketplace.
For now, the union is attempting to rally political leaders such as Specter and state Rep. Ron Raymond, R-162, of Ridley Park, behind their cause, and it seems they are making headway.
Raymond, who attended Tuesday’s event and is chairman of a nine-member committee that is looking into the possible reorganization of the airport, called the proposal "crap."
"What’s going on with US Airways is despicable, disrespectful and I agree with these guys we can’t allow it to happen," Raymond said. "We’re not going to give them another stinking nickel or dime if they keep treating you this way they are."
Raymond said his committee, of which Boland is also a member, was exploring alternatives, including the possibility of employees working directly for the airport instead of individual airlines.
Raymond also said he had a meeting scheduled with House Speaker John Perzel, R-Philadelphia, who is on the side of the union members.
Specter, who touched briefly on the US Airways issue, said he was "very much concerned" about the situation and reminded union members of his previous pro-labor votes.
©The Daily Times 2004
TINICUM -- Minutes after calling a US Airways proposed contract "absolutely atrocious" Tuesday morning, Bob Boland, president of the machinists union, ripped up the proposal and threw it into the air to a round of applause from hundreds of union members.
The International Association of Machinists (IAM) Local 1776 had planned an endorsement ceremony at their headquarters for incumbent Republican U.S. Sen. Arlen Specter, but the event turned more into a pro-labor demonstration as union leaders rallied members against the proposal and urged them to unite.
The US Airways proposal so angered one elected official, he publicly called it "crap" at the meeting.
Among other things, the proposal would further slash a temporary wage cut enacted earlier by federal bankruptcy court, effectively cutting the baggage handlers’ wages by 23 percent.
Saying it is the "fight of our lives," Tony Armideo, the trustee of the union, told members he believes "we are not going to take a contract that absolutely slices our own throat."
The proposal was given to the bargaining committee at 6 Monday evening. IAM Local 1776 represents more than 3,000 employees from Atlantic Aviation, British Airways, Midway Instrument, Northwest Airlines, United Airlines and US Airways.
After the meeting, Armideo said the US Airways proposal would be a "death sentence" for members of the union.
After US Airways filed for Chapter 11 bankruptcy Sept. 12, a federal judge ruled the company could temporarily slash employee wages by 21 percent and cut pension contributions from 5 to 3 percent to allow the company to recoup $49 million in federal loans it borrowed to stay in business.
This proposal is the company’s plan to recoup the remaining $49 million deficit, union officials said.
Yet, union officials say workers have twice made concessions in wages and other benefits to keep the company afloat and charge gross mismanagement at the highest levels has led to the company’s bankruptcy.
"Our top (pay) rate has basically gone from $19.64 an hour. Under the imposed (court ruling), we now work for $15.40 an hour, so you’ve basically already taken off over $4 an hour," Armideo said.
Under the US Airways seven-year proposal, employees would have to work an additional three years (from 11 to 14) to reach top level pay, which would max out at $15.20 with no grandfather clause for employees at the former top-level pay scale.
A 1-percent raise would go into effect in 2008, 2 percent in 2009 and an additional 1-percent raise for each of the two succeeding years.
US Airways would maintain the current 3-percent pension contribution.
However, Armideo says the real "death threat" is the outsourcing language in the proposal, which reads, "The Company reserves the right to contract any or all work covered by the CBA (Collective Bargaining Agreement), if by doing so, the Company is able to accomplish the work more economically."
US Airways spokesman David Castelveter said the employees should look at the bigger picture and echoed the union members’ sentiments that the company is also fighting for its life.
Strong competition from low-cost carriers, such as Southwest, has severely damaged the legacy carrier, according to Castelveter.
"We recognize this is an extremely difficult time for every employee because every employee in this company is going to be working harder, working with less and making less. But given the alternative, it’s the only choice we could make," he said.
"Has this been brewing for a long time? Yes. Have we been able to control those costs? No. We have some of the most rich labor agreements in the industry and we have, and are, doing something about it."
Agreements with the pilots and the transport workers unions were ratified by the bankruptcy court Monday, Castelveter said.
If the US Airways proposal is not accepted by Local 1776, a bankruptcy court judge would review the case and impose employee wages and benefits.
While the union has a legal obligation to put the proposal to a vote by its members, union leaders are doubtful it will pass.
Despite their anger over the proposal, Armideo ruled out the possibility of a strike.
"There isn’t going to be a strike, we’re trying to go back to the company," he said. "If we don’t negotiate this, it will be used against us in the next part of bankruptcy."
During the rally, Boland denied published reports of an intentional worker slowdown.
"It’s absurd for anyone to think we have any kind of job action going on," he said. "We don’t need to do that, management’s done that for us."
Castelveter acknowledged management has not always made the right decisions in the past, but insisted the airline’s economic woes stem from the changing marketplace.
For now, the union is attempting to rally political leaders such as Specter and state Rep. Ron Raymond, R-162, of Ridley Park, behind their cause, and it seems they are making headway.
Raymond, who attended Tuesday’s event and is chairman of a nine-member committee that is looking into the possible reorganization of the airport, called the proposal "crap."
"What’s going on with US Airways is despicable, disrespectful and I agree with these guys we can’t allow it to happen," Raymond said. "We’re not going to give them another stinking nickel or dime if they keep treating you this way they are."
Raymond said his committee, of which Boland is also a member, was exploring alternatives, including the possibility of employees working directly for the airport instead of individual airlines.
Raymond also said he had a meeting scheduled with House Speaker John Perzel, R-Philadelphia, who is on the side of the union members.
Specter, who touched briefly on the US Airways issue, said he was "very much concerned" about the situation and reminded union members of his previous pro-labor votes.
©The Daily Times 2004