If I recall correctly it was a combination of the Government of Canada and the unions. Between the government imposing onerous constraints on C3M and the stubborn unions, the executive of C3 based said "F*&^ It" and shut the whole thing down and left town. I think it was a combination of screwed up Federal policy (it's still screwed up), and the union "you OWE me a good paying job" mentality that brought C3 to it's knees. I saw an "outlet" store last weekend in Richmond BC selling a bunch of "Royal Airlines" headsets, selling for $1.99/each. I could only think of David Collenette, our blessed Canadian Federal Transport Minister. Matthew On Wednesday, December 4, 2002, at 04:47 PM, Mark wrote: > Perhaps someone should remind United's machinists that is was the > unions at > Canada 3000 that held out on concessions and how many flights a day > are they > operating? > > > ----- Original Message ----- > From: "Bill Hough" <psa188@juno.com> > To: <AIRLINE@LISTSERV.CUNY.EDU> > Sent: Wednesday, December 04, 2002 6:36 AM > Subject: NYTimes.com Article: Tension Mounts Between United and > Machinists > > >> This article from NYTimes.com >> has been sent to you by psa188@juno.com. >> >> >> >> Tension Mounts Between United and Machinists >> >> December 4, 2002 >> By EDWARD WONG with STEVEN GREENHOUSE >> >> >> >> >> >> >> CHICAGO, Dec. 3 - Executives and union leaders of United >> Airlines stepped up their pressure on United's mechanics >> today, seeking their approval of a $700 million package of >> wage and benefit concessions that the airline says could >> help it avoid bankruptcy court. >> >> The mechanics' vote is scheduled for Thursday, and so much >> hostility toward management runs through the shop floors at >> United that many mechanics say the outcome is uncertain. If >> the mechanics reverse course from their vote a week ago and >> approve the concessions, many say, it will be by only a >> narrow margin. >> >> United Airlines also announced plans today to lay off 220 >> pilots in early January and 132 in early February, reducing >> the total to about 8,250, and to cut senior management >> ranks by 18 percent, to 36 senior managers. Glenn F. >> Tilton, the chief executive, said that the remaining >> managers would take an average annual pay cut of 11 percent >> over the airline's planned five-and-a-half year recovery >> period and would forgo merit and incentive bonuses this >> year. The management savings would total more than $60 >> million, he said. >> >> Those announcements came as Mr. Tilton ratcheted up his own >> participation in the campaign to sway the votes of the >> mechanics. He signed a letter sent to every mechanic and >> then flew from United's headquarters here to San Francisco >> for last-ditch meetings tonight and on Wednesday with >> workers at the airline's largest maintenance center - and >> the one with the most militant machinists. >> >> An agreement by the mechanics to take the concessions would >> give United, the nation's second-largest airline and a unit >> of the UAL Corporation, the final piece of a business plan >> it has presented to the federal government in an effort get >> $1.8 billion in federal loan guarantees. Rejection of the >> concessions would scuttle that plan and almost certainly >> any hope of getting the loan guarantees, possibly forcing >> United to file for Chapter 11 bankruptcy protection. >> >> Last Wednesday, more than half of the airline's 13,000 >> mechanics turned out for a vote in which 57 percent >> rejected the wage and benefit concessions. After making >> some revisions on Sunday night to the concession package, >> the airline and union officials organized another vote for >> Thursday. There is now immense pressure for the mechanics - >> from executives, from the union leaders, from pilots and >> flight attendants - to reverse their earlier decision. >> >> Many mechanics are wary. >> >> "I've got the fear in me that >> they'll file for Chapter 11 no matter what we do," said Joe >> Schwirian, a mechanic for 17 years in San Francisco who >> voted against the concessions the first time. "I think it's >> in their game plan to do that. They gain too much from >> filing for Chapter 11 - they can close bases or do other >> things to skirt the contract." >> >> But Mr. Schwirian's car-pool colleague, Charlie Lincoln, a >> lead mechanic and shop steward, had a different take on the >> situation. "My vote was a `yes' originally," he said, >> "because what bankruptcy means to us contractually is not a >> good thing. The membership who voted `no' is just angry at >> the company. They're voting out of anger and not knowing >> the facts." >> >> That anger - present even among many mechanics who voted >> for the concessions - burns as hot as the engines that >> these workers maintain. >> >> It is anger at the fact that they agreed in 1994 to a deep >> wage cut with no raises for six years, in exchange for >> stock options that are relatively worthless today. It is >> anger arising from what they call wasteful management >> decisions, like United's recently aborted buyout of US >> Airways, and generous executive compensation, like the $3 >> million signing bonus Mr. Tilton received in September. And >> it is anger raised by the steady prodding of a rival union >> - the Aircraft Mechanics Fraternal Association - that has >> repeatedly tried to take over representation of the >> workers. >> >> In fact, many mechanics say the vote last Wednesday was as >> much an expression of dissatisfaction toward their current >> union - the International Association of Machinists - as it >> was a slap against United's management. >> >> "I am not a union hater but they give us no information," >> said Kenneth Epps, a 43-year-old turbine mechanic in San >> Francisco who said he planned to vote against concessions >> on Thursday. "A lot of mechanics don't trust our employer >> and a lot of folks don't trust the union. Voting no is a no >> vote to the union and a no vote to the company." >> >> United executives tried to sweeten the concession package >> by agreeing on Sunday to slightly alter a measure on unpaid >> vacation days, as well as promising to try to resolve >> workplace issues. >> >> Conditions that have made mechanics irate include the >> starting times of swing shifts, the outsourcing of work to >> other companies and what the disgruntled call the >> ineptitude of floor supervisors and middle management. Many >> mechanics have long demanded that a system be put in place >> where they can voice their complaints. >> >> "Part of it is the machinists tend to have more of a >> conflict with management than the other unions," said John >> W. Budd, a professor of industrial relations at the >> University of Minnesota. "The pilots are up in the air, the >> flight attendants are up in the air. They can do what needs >> to be done. But the machinists are on the ground. There's a >> huge potential for management to be looking over their >> shoulder." >> >> The relationship that the mechanics have with their >> supervisors varies widely by workplace. This was indicated >> by the radically different ways that votes turned out last >> week at some of the largest bases. In San Francisco and in >> Indianapolis, the second-largest site in number of >> mechanics, workers voted by almost 2-to-1 to reject the >> concessions. At Denver, workers voted by 57 percent in >> favor of the concessions. >> >> "I'm cautiously optimistic that this will pass," said Steve >> Adams, secretary-treasurer of the Denver local, which has >> about 1,000 members eligible to vote. "But they are going >> to bellyache all the way to the ballot box." >> >> Some mechanics and union officials who support the >> concessions say the outcome on Thursday could mirror what >> took place at US Airways this fall. That airline, which >> filed for bankruptcy in August, had asked the machinists >> for further concessions, which the leaders agreed to but >> the membership rejected by 57 percent in a vote on Aug. 28. >> Three weeks later, the union held a second vote after David >> N. Siegel, the chief executive of US Airways, said that the >> airline was in worse shape than he had previously >> indicated, and the concessions were passed. >> >> But what is now happening at US Airways could also >> encourage the United mechanics to take a firm stand against >> concessions. Just three days before the first vote at >> United, US Airways announced further layoffs of 2,500 >> workers, with 450 of those coming from the ranks of the >> mechanics. That raised the ire of mechanics at United, >> several of them said. >> >> The United mechanics also still talk about the disastrous >> business decisions that management made that led to the >> company's bleeding cash: the attempted buyout of US Airways >> that was blocked in July 2001 by the Justice Department; >> the failed attempt to create a business jet division called >> Avolar, and the seeming lack of a coherent business plan >> for coping with the economic downturn of the last couple >> years. >> >> What is more, the labor groups were promised by Gerald M. >> Greenwald, the UAL chief executive who oversaw the employee >> stock option plan from 1995 to 1999, that they would never >> work without a contract again. That promise turned out to >> be hollow, and the mechanics watched in frustration as >> their contract expired in July 2000 without a deal. >> >> "They feel that since July of 2000, they have been >> disrespected and abused," said Scotty Ford, president of >> the union local that represents United mechanics. "I have >> got all the people who work for me working the properties, >> trying to impress on them the seriousness of the situation, >> trying to convince them that the need is real." >> >> It was not until March 2002 that the mechanics got a >> contract granting them their first raise since 1994. >> Mechanics also have other bitter memories from the autumn >> of 2000, when United accused the machinists of staging a >> work slowdown and got a court injunction against them. >> >> And in the middle of negotiations for that contract, the >> Aircraft Mechanics Fraternal Association tried to take over >> representation of the mechanics. Many United mechanics are >> now lobbying in favor of that union, which argues that it >> more ably represents mechanics because it does not have >> other labor groups as members. >> >> The Aircraft Mechanics have set up a phone message hotline >> to United workers saying: "It is not our labor costs behind >> the crisis at United or the airlines. It is greed and >> arrogant management. If we give concessions today, they >> will demand more blood tomorrow." >> >> > http://www.nytimes.com/2002/12/04/business/ > 04LABO.html?ex=1040012599&ei=1&en > =936d0a85eab3cbee >> >> >> >> HOW TO ADVERTISE >> --------------------------------- >> For information on advertising in e-mail newsletters >> or other creative advertising opportunities with The >> New York Times on the Web, please contact >> onlinesales@nytimes.com or visit our online media >> kit at http://www.nytimes.com/adinfo >> >> For general information about NYTimes.com, write to >> help@nytimes.com. >> >> Copyright 2002 The New York Times Company >>