Re: NYTimes.com Article: Tension Mounts Between United and Machinists

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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
>>
>>
>>
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