September 24, 2010 Newsletter

Senate Blocks Republican Attempt to Stop NMB Rule Change on Union Voting

This Thursday in a 56-43 vote, the Senate blocked a resolution designed to stop the Obama administration from implementing a reform instituted by the NMB about how employees can gain union representation. The NMB change allows a union be certified if a majority of the employees who vote support it. The rule previously required majority support of all airline or rail workers eligible to vote to be certified as a union.

Teamsters General President Jim Hoffa today praised the Senate for upholding the National Mediation Board’s reform of union elections at airlines and railroads.

 “The NMB reform finally lets airline and railroad workers’ votes be counted according to today’s election standards in the United States,” Hoffa said. “Whichever side gets the most votes wins. I’m pleased that the majority party in the Senate defeated an attempt by anti-union groups to undermine a fairer system for workers who want to join a union.”

Sen. Johnny Isakson, R-Ga., introduced a joint resolution of disapproval today in an attempt to overturn the NMB rule. "There is no sound legal or policy basis for hastily changing a rule that has been in place and upheld repeatedly for over 75 years," he was quoted as saying.

Senator Tom Harkin (D), of Iowa disagreed, saying the 75-year history of the old rule was “irrelevant in evaluating its fairness.”

“The deck is stacked against workers who want to form a union,” Hoffa said. “Those who voted in the Senate to proceed to the joint resolution were deliberately trying to undermine workers’ right to form a union.” 

Teamsters Join In Concern for Ecuadorean Airline Workers

Teamsters Airline Division Director David Bourne has joined the international voices in support of the unionized employees of LAN Airlines, who have been fighting for a fair contract.

In his letter, Bourne wrote, “I write on behalf of the 65,000 airline workers affiliated to the International Brotherhood of Teamsters to express our concern about the prolonged contract negotiations between our sister union the Sindicato de Tripulantes de Cabina Aerolane (STCA) and LAN Airlines. I understand your Ministry is mediating the process to achieve a collective bargaining agreement. We strongly encourage you to move expeditiously towards a fair agreement for LAN workers in Ecuador.”

“STCA is the democratic voice of the cabin crew workers of LAN,” said Bourne. “A fair contract is the most important way for Ecuador and the LAN management to continue health labor-management relations. I encourage Minister Guzman to work closely with STCA to conclude a fair contract as soon as possible.” 

Through our worldwide affiliation with the International Transport Workers’ Federation, we will be closely following STCA’s reports towards the speedy conclusion of a fair collective bargaining agreement,” Bourne concluded.

AAWW Talks Break Off, Now Headed to Binding Arbitration

Despite two years of negotiations, crewmembers for AAWW and negotiators for the company have failed to reach a comprehensive joint contract agreement that is needed to complete the merger of the holding companies two carriers, Atlas Air Worldwide and Polar Air Cargo Worldwide. Under the terms of the merger protocol signed by the two parties, the unresolved issues are now headed to binding arbitration.

“This is a totally unnecessary arbitration,” said Airline Division Director Captain David Bourne. “Here we have a company with one of the strongest balance sheets in the world, built on the dedication and hard work of these pilots and flight engineers. Since 2005, the Atlas employees have been stuck with an amendable contract with no changes in their 2002 contract. The company has made record profits each year, yet now insists that in order for the crewmembers to begin to approach industry standard wages, they must give up hard earned benefits to gain industry parity.”

“It bears repeating; this is one of the most financially sound airlines in the world. They provide a substantial amount of military support for which they are extremely well compensated. They have a solid customer base, including DHL Worldwide and operate one of the newest fleets of aircraft in the world, with cutting edge technology 747-8 aircraft scheduled for delivery. They can well afford to fairly compensate their crewmembers,” he said. “To demand that the crewmembers subsidize for their own pay increases after over a half decade of substandard wages without even a single cost of living adjustment is reprehensible. However, since they have chosen to take this course of action, we are completely comfortable with having an arbitrator review the facts and determine the outcome of the remaining open contract issues.”

“I am pleased to say that along with their leadership, the Atlas Air and Polar Air crewmembers are united in their efforts to finally gain the fair contract they deserve,” concluded Director Bourne.

Amerijet “Coalition of the Willing” to Celebrate One Year Strike Anniversary

Amerijet crewmembers, represented by Local 769, are hosting a one year anniversary celebration of their successful strike to gain their first contract. A historic first, the strike galvanized organized labor from across the spectrum of unions and union membership. The unity and strength of support was paramount in bringing about the conclusion of the strike with a first contract and the end to dehumanizing conditions the crews were forced to endure in flight.

 “We are so proud and thankful for the support of our fellow union members from South Florida and indeed, across America,” said Local 769 Business Agent Daisy Gonzalez-Colli. “We hope that all our union brothers and sisters who stood with us will stop by and share the celebration.”

The celebration begins at 3pm and will be held on Saturday, October 2nd at the Tiki Hut, Kendall-Tamiami Airport, 14300 SW 129th Miami, FL 33186. Food and beverages, a wide screen TV and DJ will be provided as well as door prizes. For further information, contact Dawn Lechinski at: [email protected]

Week In Review News Items

Labor Developments

The Obama administration said the president may veto legislation aimed at making it more difficult for labor unions to organize workers at carriers such as Delta and FedEx. Senator Johnny Isakson, a Georgia Republican, introduced a measure to roll back a National Mediation Board ruling that eased requirements for votes in union elections. Isakson’s bill would require a majority of all workers to approve joining a union, rather than a majority of those who vote, as allowed by the board.

Legislative, Safety & Regulatory 

The National Air Transportation Association has conducted its initial review of the FAA’s new proposed rule addressing pilot hours-of-service rules for Part 121 airlines. While the association supports the FAA’s decision to pursue separate rulemaking initiatives for Parts 121 and 135, NATA is deeply concerned about language contained in the proposed rule regarding the FAA’s plan for future Part 135 rulemaking.

U.S. airlines must determine whether Koito Industries Ltd. seats on 278 planes meet safety standards and remove those that don’t, aviation regulators said. The order, which covers 40,365 seats on planes made by companies such as Airbus SAS and Boeing Co., would cost about $875,000, according to FAA…nearly 32 years after the U.S. airline industry was deregulated, U.S. carriers are facing a wave of government and union rules that threatens to unleash the biggest regulatory changes for the industry in a generation. Driving the shift is mounting consumer dissatisfaction with airline service and growing exasperation over airlines' fast switch to charging extra fees for services.

Airline Industry Finances & Structure

Global airlines are likely to post sharply higher profit in 2010 than previously forecast as the industry rebounds from economic recession, IATA said on Tuesday. IATA sees the industry posting a combined net profit of $8.9 billion, more than three times the previous forecast of $2.5 billion made in June, and compared to an estimate of nearly $10 billion losses in 2009.

Shares of American Airlines parent AMR Corp. tumbled more than 9 percent Wednesday afternoon after the company's outlook for stronger revenue failed to impress some analysts….the board of Spanish airline Iberia SA has backed British Airways PLC's plan for closing a huge pension deficit, clearing the way for a merger of the two airlines, the British carrier said Thursday.

Miscellaneous

A group of travel executives said it has stirred up plenty of support for a government rule that would require airlines to display extra fees prominently on their websites and in travel reservation systems…a program that has been phased in during the past year will require airlines to collect additional information from passengers to help the government match travelers’ names against federal “no-fly” and enhanced screening lists beginning Nov. 1.