Dear Sisters and
Brothers,
I am writing you to discuss the Tentative Agreement the District 141
Negotiating Committee recently negotiated with US Airways on your
behalf.
US Airways Tentative Agreement
A great deal has transpired in our industry since the previous
Tentative Agreement was reached last August. One only needs to read
a newspaper or watch the evening news to be reminded of our failing
economy and its devastating impact on our industry. Airline workers
do not need economists to tell us we are in a recession. In the
seven days prior to reaching our Tentative Agreement three airlines,
Aloha Airlines, ATA and Skybus shut down their entire operations
forcing thousands of airline workers, many IAM members, unexpectedly
out of work.
Oil
prices have increased by 52.6% since the previous Tentative
Agreement was reached last August. US Airways stock is now worth one
third of its Aug 10th value.
These combinations of forces are the reason your
profit sharing checks for 2007 are so much smaller than what you
expected. The IAM does not care about how these figures impact
executive stock awards, but we do care about how the stock’s
performance and fuel prices affect the company’s ability to attract
the investors and capital necessary to maintain its operation. Aloha
Airlines went out of business last week because they could not find
someone willing to invest the funds it needs to run its business,
and that is something we do not want to see repeated at US Airways.
The August 2007 Tentative
Agreement was reached with the concern that the negative economic
forces being experienced today were on the horizon and bearing down
like a freight train. Unfortunately, we were unable to adequately
convey the sense of urgency to the membership.
Our message was lost in the justifiable anger, frustrations and
emotions stirred by company delay tactics and two painful trips
through bankruptcy. That vote was the first opportunity that many of
our members had to finally express their anger toward the carrier
for reaching into our pockets to fund huge bonuses for the airline’s
executives. That message was received by US Airways management.
With that message having
been effectively delivered, I urge you to set the anger and emotions
aside and focus on what is best for you and your family today. That
can only be accomplished by disregarding rumor and getting the facts
before making an informed decision. The same facts that your
Negotiating Committee confronted at the bargaining table will be
presented to the membership at local informational meetings. You
will also be able to ask your negotiators questions at these
meetings, so I strongly recommend attending before determining how
to vote to protect you and your family’s best interests.
I have been negotiating airline contracts for more than thirty years
and have never seen a more difficult and challenging environment.
The effects of 9-11, oil prices going through the roof, mergers,
bankruptcies and a failing economy have created the perfect storm.
But in spite of all of this, we have succeeded in bringing our ship
through this storm.
Your District 141
Negotiating Committee has used all of the IAM’s resources to reach
this Tentative Agreement in a very hostile environment. Your
Committee believes that this agreement is worthy of your
consideration and recommends ratification. Are we satisfied with
this agreement? Hell no! We always strive to get the most we can,
and then try for more. But we have an opportunity to provide
immediate gains to all Fleet Workers nearly two years before our
normal amendable date, and that cannot be ignored.
This agreement puts IAM
members in position to enter the next round of bargaining stronger
in both economic issues and job security. In that round of
traditional bargaining we will have the leverage of our right to
strike to achieve our goals, a right we don’t have today. As a
reminder, this Tentative Agreement was only possible because of an
opportunity afforded by the US Airways-America West merger. The
current US Airways East agreement is not amendable under traditional
Railway Labor Act bargaining until the end of 2009. Therefore, we
have no right to strike until the negotiating process that won’t
even begin until late 2009 has run its course.
US Airways has clearly
stated to your Committee that if this agreement is not ratified they
will not enter into any further bargaining for contract improvements
until they are required to do so when the East agreement becomes
amendable. They will only consider a straight transition of West
employees into the existing East agreement, with no improvements for
East employees. This is important to understand when deciding how to
vote. Your Committee had to confront the same reality at the
bargaining table.
Rarely do airline mergers
provide for improvements to workers and fair and equitable seniority
integration, but the one you are voting on does. Flight Attendants
and Pilots are still struggling to reach agreements and realize the
improvements in the Tentative Agreement being presented to you.
Your Committee believes
this is an agreement worthy of your consideration. As always, the
membership will make the final decision. You have an opportunity
that tens of thousands of airline workers who have endured
bankruptcy wish they had - an opportunity to regain some of what was
lost. I am confident that whatever choice the membership makes will
be in their best interests. I assure you that the membership’s
decision will have the full support of the entire Machinists Union.
That is what democracy in the IAM is all about – the power rests
with the membership.
Your solidarity and
support throughout this process has been astounding and will be
necessary as we face the industry’s uncertain future together.
With best wishes,
in your behalf, I remain,
fraternally,
S.R. (Randy)
Canale
President & Directing
General Chairman
