Machinists Union Demands Senate Investigate Airlines Use of CARES Act Funds . For all our hard work to become a successful company.

May 1,2020
Good morning to all of our DL 141 Brothers and Sisters, but this memo is specific to our United members who fall under
the PSE and Fleet agreements at United Airlines.
I’m sure the anxiety and frustration of rumors circulating around the workplace and social media are taking its toll on
you all, and for that I’m sorry. I wish I could make them all go away right now but the truth of the matter is only United
Airlines can do that today and unfortunately only a return of the flying public can do that past September 30, 2020.
As communicated last week, United Airlines has advised us they are looking to reduce all employees who work under
the Passenger Service (including Reservations) and Fleet agreements to part-time to save money. Money for a Company
that has over 10 billion on hand today, that will have between $8 and $10 billion at the end of June and between $4 and
$6 billion at the end of September.
Regardless, no Company can survive long-term with passenger loads the way they are at United today.
We have suggested many cost savings ideas to the Company. Some of those are;
a. Allow 12 month COLAS that continue to pay employees 25% of their salary.
b. Offer the medical bridge to employees between the ages of 55-65. (It’s important to note that we have over
10,000 members under these two contracts who are 55 or older.)
c. Allow employees to defer 25-50% of their salary until the first quarter of 2021.
We’ve suggested to incentivize these voluntary programs by offering United club passes and Positive Space travel which
would cost the Company nothing.
Additionally, we have put forward several smaller, but critical proposals that can produce the level of savings that United
needs if we can attract enough participation from our members.
More than 25% of employees have taken 3 to 6 month COLAs already. The Company does not want to count these
sacrifices alongside the other cost-cutting efforts that have been made to date.
As of this communication the Company has declined these suggestions without so much as an explanation. They have
told us they would be making a decision on many of these matters as early as today.
If the Company were to furlough all full-time employees to part-time they would still be required to follow key
contractual rules. For example, they will need to notify everyone no later than Monday, May 4th to meet their May 24th
target date to adhere to the contractually-required 20 day language.
They have also told us they plan to go down to 22 hours. We expressed that a 45% pay cut, or any pay cut for that
matter, is unacceptable under the CARES act and even though we don’t and won’t agree to any pay cuts, they should at
least give everyone 30 hours a week.
Times are tough. It’s easy to be an employee-friendly Company when you’re making billions on top of billions of dollars
(which again, they still have). However, it’s times like this, when everyone is scared for their livelihood, their safety, and
our industry as a whole that United could show true CORE4 leadership.
As our Country salutes their essential workers is this really how United wants to treat theirs?
Fraternally and in Solidarity,
Michael Klemm
President and Directing General Chairman
IAMAW, District Lodge 141

No, United.

Call your lawmakers and city council.
Tell them to ask United to honor their word to their workers and taxpayers.

Click the link to quickly locate your members of Congress through USA.gov.

Thank you for taking a stand.

(844) 872-0234

Suggested Text:

Dear Rep. ______________:

My name is _______________, I am a resident of the state of _________, I live in your congressional district and I am a registered voter. I am a member of the International Association of Machinists and Aerospace Workers and an employee of United Airlines.

I am writing because I am outraged at the news we’ve received from our union leadership. Last month, the Machinists Union joined every airline union and every air carrier to lobby Congress in support of the CARES Act. Now, just a few weeks later, United Airlines is announcing a plan to furlough all airport ramp and customer service workers by cutting their hours in half, beginning on May 24. These cuts are on top of reductions in schedules for part-time workers, and after thousands of employees took voluntary leaves of absence, saving the company millions of dollars in payroll costs.

As essential workers, airline employees continue to show up for work every day, risking our own and our families’ health. In the past month, we have mourned the death of dozens of our co-workers and family members. Thousands of workers are sick, and many have recovered and are back at work. We deserve better.

Airline employees fought for, and believed we achieved, a strong system of oversight to ensure  that funds from American taxpayers would be used solely for paycheck protection.

We are asking for your help to stop United’s illegal actions. We need you to demand the restoration of oversight for the CARES Act. We need these protections so we can continue to maintain our nation’s essential transportation infrastructure while supporting our families.

Please take action so United Airlines management respects the authority of Congress, protects its employees and passengers, and obeys the law.

Sincerely,

Updated: May 1, 2020 — 2:37 pm