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June 11,
2008
RED TALES
Is Labor The Problem?
The Star Tribune interviewed Ralph Strangis for its Sunday
Opinion Exchange. Strangis, an attorney, is an expert on the
airline industry. His law firm represented US Airways in a
proposed merger with United in 2001 as well as Republic in the
1986 merger with Northwest. When discussing the major problems
faced by airline owners, here is what he had to say about
airline labor.
“It would be hard to characterize this as an industry
in which your labor costs were proportionate to productivity and
appropriate given the level of skills and the work that people
do.”
In case you were not paying attention, he is talking
about us. Baggage handlers, customer service agents, stock
clerks, flight attendants. His disdain for workers is barely
concealed. Our wages are not appropriate, he says. Perhaps he
has not looked at executive compensation lately.
The reason we quote Strangis is because he represents
the views of airline executives and the Star Tribune editors, as
well. He absolutely is on the same track as Richard Anderson.
The cost of airline labor, from their point of view, is the
problem.
We raise this in hopes of putting to rest any idea that
Anderson’s plan is to rid the new airline of unions and then
hand out pay raises. Exactly the opposite is true. Once cleansed
of unions, Anderson can begin his long sought after goal of
lowering the industry standard and the WalMartization of the
airline industry. Fortunately, he does not get the final say.
________________________________
Cable TV- Management has
brought to our attention the wide spread use of unauthorized
cable TV in the ramp breakrooms. If you are aware of this in
your break room, we would advise you to disconnect and stick to
the standard channels.
________________________________
Safety On The Ramp- The
summer schedule has begun. Please follow all safety rules. Avoid
repetitive motion injuries that come from scanning bags with one
hand and lifting bags with the other, loading flights with one
man in the bin and rushing. Be sure you make it through the
summer in one piece.
________________________________
IAM District 143 Officer Elections
Thursday, June 12th Bloomington Eagles Club – 7AM to 11:59PM
Reregulation
At the risk of being alarmist, it would appear that the
airline industry is facing the perfect storm: historically high
oil prices, intense competition, an economy in retreat. In its
press release concerning layoffs and a pulled down flight
schedule, Continental Airlines used the word crisis 6 times. It
is safe to say we are in a crisis.
On the front side of this newsletter we quote from an
interview with Ralph Strangis, an attorney with ties to our
industry. He believes that airlines are overburdened with
regulations. Steenland and Anderson have both said the same
thing publicly. Of course they were quite happy with government
regulations that allowed them to gut our contracts. So it really
depends on what type of regulation we are talking about.
The greed of airline executives, hedge funds and
investment banks has driven the airline industry into chaos. The
solution they propose is mergers. By laying off employees,
cutting back service and other types of consolidation they say
they can stabilize things, at least for a little while.
IAM leaders, Thomas Buffenbarger
and Robert Roach Jr. have both raised the idea of some form of
reregulation when testifying before Congressional hearings. We
agree 100%. In consultation with unions, passenger rights
groups, political leaders and airline leaders a rational
solution to our crisis could be found. Some would complain that
regulation of prices and routes would be anti competitive. But
to follow the same course and use mergers as the solution will
destroy our transportation system, communities and workers.
____________________________
Job Security Comparison- Delta vs.
Northwest- Under our current contract, Northwest can
not contract out any of our 40 stations, unless departures fall
below 48 per week. Should we lose our union and our contract,
that would change. A quick look at some stations will give us an
idea of where farm out might start. SFO currently has 54 ESE
full time equivalents. Delta has 340 vendored employees. It does
not take a genius to figure out that the entire station would be
vendored under a non union Delta. LAS has 49 ESEs. Delta has 252
vendored baggage handlers. LAS gone. PDX, PHX, DFW, IAD gone.
On the other hand, with a union contract, farm out of
Delta ground operations in the stations we have retained could
be brought to an end, opening up far more positions for both
Delta and NWA employees.
June 3, 2008
RED TALES
Having A Union? Priceless
Baggage handlers at Delta make more in basic hourly wage
than we do at NWA. Delta tops out at $18.24 per hour and we top
out at $18.06. Twenty two cents more an hour. Why would anybody
want to keep the union if we make less than they do? If the
story ended there Richard Anderson’s anti union preaching might
have some validity.
When looking at the difference in wage scales it is important to
use the approach that a magazine like Consumer Report uses when
looking at a product, like a car, vacuum cleaner or washing
machine. Look at the total picture . Is there a warranty? Does
the manufacturer stand behind the warranty? Does it use a lot of
energy? You get the picture.
Many ESEs at NWA are regularly paid for an off schedule lunch.
This adds about one dollar per hour to our hourly wage that
Delta does not get. Then there is line pay for those who work on
the ramp. About a dollar per hour is put into our pension fund.
This can mean a guaranteed monthly pension of several thousand
dollars per month down the road. Add in guarantees against
contracting out of our jobs. How much is that worth? How much is
guaranteed sick pay and OJI pay with no cap worth? What price
would you put on having a trained union rep fight for your FMLA
or Long Term Disability claim? How much would you pay to keep
all of this from being subject to management’s whim. Finally,
can you really put a price on the right to vote on a contract,
the right to have a voice and have an organization whose main
interest is not satisfying the financial appetite of Wall Street
investors?
________________________________
Delta Retirees Have No Voice
The following is excerpted from a letter being circulated by
Delta retirees to elected officials.
We have been sitting on the sidelines watching this process for
the past month as hearings are taking place in Washington. While
those that are represented by unions have been heard, people
without union voices have been silent. Delta retirees have made
huge sacrifices already because of the recent bankruptcy process
and today pay more than any other airline for their healthcare
due to broken promises and the fact that Delta has the ability
to use the healthcare funds as they choose instead of following
industry standards other airlines use to determine their
benefits.
OSLs Revisited
When filling out an OSL slip, the best way to make sure you get
paid is to write details on the slip. For example, if your
flight showed off the gate at 09:15 but it did not really push
until 09:25 and you did not return to the break room until
09:30, put that on your slip.
If you have trouble getting your OSL signed, please see the Shop
Committee or a steward.
__________________________
District 143 Election
On Thursday, June 12th elections for District 143 officers will
take place at the Bloomington Eagles Club from 7AM to 11:59PM.
All Northwest IAM members are eligible to vote.
There are two reasons why it is important for all of us to vote.
First, the General Chairs who are elected will have an impact on
every one of our lives. They help determine policy for our
union. They do contract interpretations. They present our
grievances and take them to arbitration. Some of them negotiate
contracts. They deal with Northwest on a daily basis.
The second reason is that turnout is important to our future.
NWA and Delta gauge interest in our union by voter turnout. On
occasion managers will even say the Company is watching how many
come out for a vote.
___________________________
General Chair- Vote for 5
Nan Otto
Gerald Bernson
Bill Holloway
Ruth Dorsty
Wade Evans
Richard Suarez
Ronald Cirrone
Gary Mobley
Steve Kelton
Kevin Graf
Trustee- Vote for 1
Megan Wagner
Stephen Kostora
____________________________
Flight Attendant Vote
Delta flight attendants were unsuccessful in their attempt to
win a union representation vote on May 28th. Approximately 40%
returned votes for the Association of Flight Attendants.
While a victory would have been a huge step forward, the flight
attendants may have another shot in the near future. If and when
the merger is approved, there will be a combined vote of Delta
and Northwest FAs. If a large number of Northwest FAs vote for
the AFA and numbers around 40% are returned by Delta FAs that
should be enough to carry a pro union vote.
May 27, 2008
RED TALES
Don’t Believe The Hype
Several IAM members we have talked to recently have
expressed the view that the best way to guarantee a wage
increase is to vote to get rid of our union. They point to Delta
Air Line’s announcement of a 3% wage increase on July 1st and
the promise of an equity stake in the new airline for employees.
They say that Delta has also promised to bring everyone up to
industry standard by 2010. This could be a $2 per hour increase,
they say.
We want to let those Northwest employees hear the voice of Delta
workers on this subject. What follows is from
deltaramp.blogspot.com, a blog written by pro union Delta
employees. They have learned about Delta promises the hard way.
“We have learned our lesson. Past pay raises simply disappeared
after the organizing campaign was over. Promises of ‘No more
station closures’ proved to be lies. Upper management lined
their pockets and many of our coworkers lined up for
unemployment or food stamps.”
Whether you have 3 months with NWA or 30 years, the best way to
guarantee a pay raise in your future is to vote union. Once the
vote is completed and our union is the winner, we begin to
negotiate a merger transition agreement. We use the combined
power of all workers at the new carrier to negotiate upward in
all categories. We get it in writing, in a contract, guaranteed.
We have also talked to a few NWA employees who believe some of
what Richard Anderson has to say about no lay offs with a merged
carrier. Again, we would ask these employees to listen to the
voice of Delta workers on the
deltaramp.blogspot.
“In an almost unbelievable example of how misleading Delta
executive’s testimony is, the Kansas City Business Journal
reports that Delta announced the closing of 9 of its 38
members-only clubs citing fuel costs and efficiency. These Crown
Club Rooms are : Kansas City, Cincinnati, Boston, Denver,
Honolulu, London, Phoenix, Seattle and San Juan.”
“All of these amenity clubs are staffed with non union Delta
employees working without protections, providing services that
could end immediately because there is no collective bargaining
agreement.”
______________________________
IAM Local 1833 Picnic- June 21 at Johnny
Cake Ridge Park in Apple Valley from 10AM to 9PM.
Northwest Town Hall Meeting- Management
has announced a Town Hall Meeting, to be held on
Thursday, May 29 at 7:45AM and 3:30PM. The location will be Gate
G7/8. We want to urge ESEs and ESLs to tell their manager they
would like to attend this meeting.
____________________________
NWA’s Ex – Chairman Adds To Perks –
Call it a going away gift from Northwest Airlines to former
Chairman Gary Wilson who, along with one time partner Al Checci,
forever changed the face of the carrier with a 1989 leveraged
buyout.
Tucked in the fine print of the company’s annual proxy
statement, filed last week, were details of a severance package
of sorts for Wilson, including a $200,000 consulting fee.
The severance package also provides Wilson with a secretary and
home office expenses for 10 years. In addition, the airline will
make a $2 million contribution to a charity of Wilson’s
choosing.
Airline executives said last week that perks such as these are
not unusual for a board chairman of Wilson’s stature.
(From May 4, 2008 Star Tribune)
Footnote- You will recall that Gary Wilson was arrested for
possession of marijuana in 1994. That $200,000 should buy some
good stuff.
____________________________
Flight Attendant Vote- May 28th
flight attendants at Delta Air Lines will complete their vote
for union representation. The Atlanta Constitution reports that
airlines throughout the industry are watching the results of the
vote closely. A victory would give flight attendants the ability
to begin negotiating a new contract for all F/As at the new
airline.
If the vote is not successful, flight attendants will have
another chance to conduct a vote if a merger is approved, this
time with NWA workers included.
___________________________
FMLA Facts – Intermittent FMLA
can be a life saver for those with chronic conditions or who
have family members that require intermittent care. Illnesses
such as colitis, diabetes, asthma or migraines would likely
qualify for Intermittent FMLA. Taking a family member to
chemotherapy would probably qualify.
The key things to remember are that the company can require you
to recertify every 30 days. If you do not recertify, you will
not qualify. You must be certified prior to taking Intermittent
leave. Your recertification is not subject to a second opinion
by a company doctor.
May 22, 2008
RED TALES
Safety Tickets To Be Issued
Very soon managers will be
issuing tickets to ESEs for following safety procedures. A
ticket is issued to an ESE if all safety procedures are followed
during the execution of his or her job. The ticket is then put
into a drawing each week for a $20 gas card. Every week 100
cards will be given away.
With the price of gas hovering at $4 per gallon, there
is certainly no one who can’t use a $20 gas card. But, we think
we speak for the vast majority of ESEs when we say, just put the
money in our pay checks. Take the millions you have set aside
in incentives and put it in our wages.
Early in 2008 a dozen ESEs met with MSP Vice President,
Todd Anderson and Director, Bill White to express concerns over
the airline’s direction. One baggage handler after another said
that they would vastly prefer increases in our basic wage over
incentives. The Shop Committee then met with Krystal Knotek
about some of the same concerns. Thanks so much for listening.
_______________________________________________________
OSL
Problems Continue
Your flight has a scheduled departure of 0900.
Breaks are released at 0901. You begin pushing at 0913 and are
back in your break room at 0921. Your next flight is on the
ground at 0950. The aircraft blocks in at the gate at 1000. In
your mind you clearly did not get a 30 minute break between your
3rd and 5th hour. An OSL should not be
any problem.
Think again. This story is being repeated all too often
these days. Some managers are simply denying OSLs instead of
doing 2 minutes worth of investigation. If this happens to you
please contact a steward or the Shop Committee so we can have a
discussion with the manager. If the OSL is legitimate and the
manager will not sign it, we will file a grievance for this
violation of our contract. In addition, we will cite the
manager who violates the contract the most each month as
Violator of the Month. He or she will get the notoriety they
deserve.
________________________________
Steenland Compensation –
According to a Pioneer Press Executive
Compensation Survey Northwest CEO made $27,060,376 in total
compensation in 2007, highest of all CEOs in Minnesota. While
ESEs and Stock Clerks make about $145 per day, Steenland pulled
in a cool $104,000 per day. Unfortunately that money came
directly out of our pockets.
Washington
Merger Hearings
Starting at 5PM on Tuesday afternoon, Delta paid
“line sitters” began lining up. They were there to make sure
that all public seating at the Congressional hearing on the
NWA/Delta merger, to be held the following day, May 13th
, would be taken by pro merger, anti union Delta employees.
Delta pays a “line sitting” company approximately $40 per hour.
That company then pays the “line sitters” $10 per hour. When a
Delta employee arrives at the hearing, they take the “line
sitter’s” place and then go into the hearing. This way, they
hope to create the impression of support for the merger. Dozens
of Northwest IAM members were also at the hearing. They arrived
from DTW, MSP, IAD, BOS, BWI, DCA, LGA, MEM and many other
stations. Robert Roach Jr., General Vice President of the IAM
gave testimony at the hearing, explaining the devastating effect
the merger could have on passengers, communities and employees.
A highlight of the hearing was Minnesota Congressman,
James Oberstar’s direct and uncompromising approach toward Delta
Air Line’s Richard Anderson and Northwest Airline’s Doug
Steenland. Speaking to them directly, he said, “You are two of
the brightest, most experienced, smartest, seasoned executives
in the industry today and that is what makes you so dangerous.”
He also explained that the merger was “not for the greatest
service, but the greatest profitability, which is great, but not
when it negatively affects so many people.” Oberstar said that
it was important not to look at this merger as a stand alone
transaction but a trigger that will begin “a cascade of mergers
that will end up with massive consolidation.” He questioned
whether this is the best way to deal with the crisis in the
industry today.
______________________________
Flight Attendant Rally –
Despite a steady downpour, 200 Delta flight
attendants and their allies from other unions, including the IAM,
gathered outside the World Parking Lot in Atlanta on Thursday,
May 14th . They were there to show support for the
Association Of Flight Attendants, which seeks to win a union
representation election on May 28th .Eight
anti union Delta flight attendants gathered nearby to oppose the
rally.
After the rally IAM members and others handed out union
cards and literature to Delta employees as they entered the huge
parking lot. The IAM is stepping up efforts to reach Delta
workers with a pro union message. If you are interested in
participating in this effort please contact the Shop Committee
at 62239, 62219 or 62230.
______________________________
Union Picnic – Apple Valley, Johnny
Cake Ridge Park- 10AM to 9PM.
Saturday, June 21, 2008.
May 5, 2008
RED TALES
Gordon Testifies at Capitol
At hearings on Wednesday and Thursday of last week, IAM
District 143 President, Steve Gordon made powerful presentations
on behalf of IAM members at NWA. He explained that Delta’s
assurance that the number of frontline jobs in MSP will stay the
same means little to his membership. “We want career jobs, not
just jobs that pay $9 per hour and don’t offer real health
insurance or benefits. We know Delta wants to bust our union and
drive us down”, he said.
We reprint more of his testimony below – “Our wages have gone
down while consumer prices have risen, but by contrast total
executive compensation has gone off the charts. Yet we were
recently told by NWA Senior Vice President of Labor Relations
that unlike the pilots, we were not invited to the table to
negotiate about this merger because in the scheme of things we
are “not significant.” How dare this company take our $190
million annually to balance their checkbook to save this airline
and then say we are “not significant”. Our members have had it
and they are not going to take this lying down. They have put
many years of sweat equity into this company and have worked
harder for less to insure the survival of Northwest and this is
the thanks we get. We are called “insignificant”. The American
people and particularly those of Minnesota have a right to know
how much the few stand to gain and the many stand to lose from
the elimination of Northwest Airlines through this ill conceived
transaction. We will not go down without a fight and will use
every lawful means available to us to save our jobs and this
airline.”
______________________________
Cell Phones and i Pods – Please be
aware that in the coming weeks the Company will be enforcing a
prohibition on the use of i Pods and cell phones on the ramp. In
a dangerous work environment such as ours we think avoiding the
use of these devices while working is a good idea.
NWA will also be paying much more attention to safety
compliance. We hope that the Company pays attention to staffing
as a safety issue. We strongly urge ESEs to follow all safety
rules, take their time and perform every function safely.
______________________________
Union Election – Polls will be open
at the Eagles Club Thursday, May 8 from 7AM to 11:59PM for
election of delegates to the International Convention. The
Dayshift Union Meeting will be at 4PM on the same day. Deadline
for absentee ballots for the June 12 General Chair Election is
May 12.
Comparisons-Delta vs. NWA
Many ESEs have been requesting concrete comparisons between what
Delta baggage handlers get for pay and benefits and what we get.
Beginning this week we will compare important aspects of our
compensation and benefits. This week we will focus on Job
Security and Overtime Distribution.
Job Security – NWA - We are
guaranteed by Article 2 of our contract to perform ramp work in
40 stations throughout NWA’s system. If flights at a particular
station go up, that station may become an ESE station again, so
we can gain work. Article 4 gives us detailed descriptions of
what that work is. Northwest can not contract out any of those
stations or any of that work. If a manager or any one else
performs our work, the Company must pay us for it. Finally, we
have an organization that can enforce our job security language.
Job Security – Delta – Because
there is no contract, Delta can contract out any stations they
like or any portion of work. End of story. And in fact they
have. In 1994 baggage handling was contracted out at over 80
stations. Since 2001 there has been a steady hemorrhaging of
jobs. Delta employs their own ramp workers in only 16 stations
now. Tomorrow it could be
fewer still. Managers can and do perform ramp work.
Overtime Distribution – NWA –
Overtime is distributed in a station and on a shift based on
hours worked. The person with low hours gets asked first. It is
not based on favoritism. Elected union representatives and the
Company meet regularly to assure overtime opportunities are
distributed evenly. At the end of the year the Company must make
a payment to employees if overtime distribution is unequal
within guidelines.
Overtime Distribution – Delta –
Overtime opportunities do not have to be distributed evenly. The
Company keeps track of all overtime and there is no penalty for
failure to keep opportunities even. This obviously lends itself
to manipulation by the Company.
______________________________
Arbitration – Last summer the
pilots got an increase in their compensation to the tune of
approximately 6%. The IAM has filed for arbitration to get that
compensation increase for all members at NWA. The IAM and NWA
will meet on May 8 to choose an arbitrator. After that an
arbitration hearing will be scheduled. A final decision will not
be for some time.
April 22, 2008
RED TALES
Our Future At Stake
As you can imagine, a large part of Red Tales will be
devoted to merger news, organizing efforts and IAM efforts to
block a merger that would be detrimental to workers, passengers
and communities.
Battle For The Future –
In the coming weeks expect Delta to step up its
anti union campaign with Delta workers and with us. Here is an
example of what to expect. All Delta frontline employees
received a 9 point Q and A with the merger announcement. Point
#3 reads, “How will the merger affect the pay of Delta and
Northwest employees? It is the goal of Delta to harmonize
the pay and benefits of all work groups over time. As a general
rule, the non-union employees of Delta enjoy higher pay and
benefits than their Northwest counterparts. During integration
of the two carriers, Delta’s non-contract employees will
continue to receive pay increases in keeping with Delta’s
commitment to move frontline employees to industry standard pay
by the end of 2010. Northwest’s contract frontline employees
will continue to receive pay increases in accordance with their
existing collective bargaining agreements.”
This statement deserves some serious attention.
1-
Harmonize means to
bring together. This could mean up or down. Without a union
contract there is no guarantee.
2-
As a general rule,
the total compensation package of NWA union baggage handlers is
better than Delta’s. While their hourly wage is higher, we
receive things that bring us above Delta, for example, unlimited
accrual of sick days, as compared to a total accrual limit of 15
days at Delta. They have no OJI pay, no Long Term Disability
Insurance, no OSLs. They are paid OT after 40 hours, not 8
hours. Overtime is generally distributed through favoritism and
not an overtime board. In the future, the IAM will be putting
out detailed comparison sheets that give us all a clear view of
our advantage.
3-
Delta says that
their employees will continue to receive raises, while we will
be stuck. Delta has already reneged on a promised pay raise on
July 1. They can do that because they are not legally bound to
give a raise. They make a commitment toindustry standard pay by
the end of 2010. There is a serious problem with the way this is
phrased. For years Delta kept their employees at industry
standard to keep the union out. Industry standard was high
because the airline industry was highly unionized (American, US
Air, Northwest, United, TWA). If the union pay and benefit
structure starts to disintegrate because of a non union empire
at Delta, we guarantee that the industry standard will be going
down, not up.
The truth is that if we win a union
election at the new Delta, our contract will be opened up and
together thousands of baggage handlers will negotiate a new
contract. This will mean that
wages and benefits will be harmonized upward for both groups.
We have already
heard from Delta employees that management there is telling them
if they vote union they will receive a pay cut. We have also
heard from coworkers that some ESEs believe they will get a
raise if they vote against the union. If you believe that we
have a bridge we want to sell to you.
Job Security #1 –
In Northwest’s Merger Q and A and in Krystal
Knotek’s presentation to MSP workers, we found it interesting
that they referred to seniority guarantees as “fair and
equitable”. If what they mean is dovetailed seniority based on
date of hire into the classification, why not just say that and
put it in writing.
Job Security #2 –
When thinking about job security we should all
remember, the 40 stations that we work right now are guaranteed
until the end of our contract. Should we lose our contract any
station could be vendored out. Any portion of our work could be
gone. Delta employees have no such guarantee. In 1994, in an
effort to lower their cost per seat mile to 7.5 cents, Delta
contracted out dozens and dozens of stations where Delta baggage
handlers had worked. Thousands were forced to move or quit.
Couldn’t happen again? Think again. |
