NYTimes.com Article: Airline Workers Losing Perks

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Airline Workers Losing Perks

April 29, 2003
By MICHELINE MAYNARD






Workers in other industries could only dream about the
rules of everyday conduct established by agreements between
the major airlines and their unions over the last few
decades. Pilots worked 80 hours or less during an entire
month. Mechanics were paid for waving planes away from
gates. Flight attendants got to stay in luxury hotels on
the road.

Over the last two years, though, billions of dollars in
losses have forced not just deep pay cuts on airline
unions. They also have brought an overhaul of the so-called
work rules that will drastically revamp how employees of
the major airlines do their jobs. The inspiration is
profitable airlines like Southwest and JetBlue, and the
goal is survival.

But the process of rewriting the rules has brought rancor
between unions and management to a new high. Last week,
American Airlines' parent, the AMR Corporation, was led to
the brink of bankruptcy in part by a fight over flight
attendants' schedules. The next test comes today, as flight
attendants and machinists at United Airlines, which is
bankrupt, vote on a collective $1 billion in concessions
sought by the airline, which has asked a court to impose
restrictive new contracts on its employees if they do not
go along.

Executives at airlines that have pushed hard to tighten
work rules say the changes are a turning point. "What we've
got now is a system that's significantly more competitive
and frankly makes a lot more sense," said Jerrold A. Glass,
the senior vice president for employee relations at US
Airways.

Yet, the attack on work rules strikes at the very heart of
the airline unions' strength, said Gary Chaison, a
professor of industrial relations at Clark University in
Worcester, Mass. Their dissolution is viewed within the
labor movement as further erosion of the unions' sway.
"These are things built over time, and once you go after
them, then everything is open," he said.

United's employees are voting on a six-and-a-half-year
contract that Glenn F. Tilton, the chief executive of
United's parent, the UAL Corporation, called critical to
the airline's future. United's pilots have already granted
$1.1 billion in givebacks over that same period.

The United mechanics' union, the International Association
of Machinists and Aerospace Workers, was the only airline
union to reject contract concessions before the airline
filed for bankruptcy last December.

A complicating factor this time is an organizing drive by a
rival union, the Aircraft Mechanics Fraternal Organization,
which has fought concessions at other carriers. Airline
officials said yesterday that they were hopeful the
contracts would be approved by both unions.

Even before United secures all its concessions, Northwest
Airlines is joining the fray. It has told its employees it
wants $1 billion a year in concessions, including sweeping
work-rule changes, by July 1, and has issued proposals to
each of its major unions.

Northwest is not in as bad shape financially as its rivals,
but it has watched them successfully, if not harmoniously,
roll back work rules. Only last week did Northwest's chief
executive, Richard H. Anderson, raise the prospect of a
Chapter 11 filing if the airline cannot get the concessions
it seeks.

The situation dismayed Mollie Reiley, a veteran of three
decades at the airline and trustee for Teamsters Union
Local 2000, which represents its flight attendants.

"They're coming to us and asking us to undo 25 years of
negotiating," said Ms. Reiley, flipping through Northwest's
contract proposal in the back of a taxicab on her way into
Manhattan last week to attend the airline's annual
shareholders' meeting. "I don't think there's a union in
the country that would willingly step up to this."

By far the most significant work-rule change is the
elimination of a practice called "receipt and dispatch," in
which only licensed mechanics are allowed to wave planes to
or from airport gates, even though baggage handlers and
other ground workers could easily do the task.

The practice required the airlines to keep hundreds more
mechanics on staff than were needed to fix airplanes. It
also meant mechanics, some earning $100,000 a year or more,
had to be scheduled to work during the day, although
repairs are made mostly at night.

US Airways has eliminated the practice at all but 6 major
airports; United wants to end it at 18. In court documents,
United estimated that it could eliminate almost 900 jobs if
other workers could do the task.

Flight attendants at United, US Airways and American also
face changes. United, which used to promise flight
attendants 17 hours on the job per three-day assignment,
now would guarantee only 15 hours. And it is proposing to
have crews return from overseas flights after one day's
rest instead of two, saving the airline on hotel bills and
meals.

American stops paying flight attendants the moment they
leave a jet, though they might not reach their homes or
hotels for an hour or more. Steven Baumert, an American
flight attendant based in Miami, said work-rule changes
mean that he must spend more time on the job and that he
earns less than he did for the same number of hours under
the old contract.

John McCorkle, a flight attendant at US Airways who writes
an industry newsletter, said, "They've basically changed
every little thing, and all those little things add up to
the employee working more days for less pay."

Pilots, by far the best-paid airline employees, have also
faced their share of changes. Northwest's proposal to the
Air Line Pilots Association, a union with 66,000 members at
42 airlines, would raise the maximum time that a pilot can
fly to 90 hours a month, from 81 hours a month now. Pilots
also could end up working more days per month.

Vacation time is another target. Under Northwest's
proposal, pilots would have to abandon the practice of
signing up for assignments that start before their
vacations end, allowing them to stretch their holidays.

Under current work rules, a pilot on a two-week vacation is
allowed to bid for a trip that begins the latter part of
the second week. Because the vacationing pilot is not
available to come to the airport, the airline must call in
a reserve pilot, one who is not actively on the job, to
take the shift. The pilot who signed up for the assignment
gets paid and gets the time off, while the reserve pilot
does the work and also gets paid.

US Airways already bans that practice, and its contract
eliminated another work rule that sometimes caused flights
to be delayed for hours. Under previous contracts, if a
pilot called in sick, the airline had to bring in a reserve
pilot to replace the ill pilot, even if there were pilots
on hand at the airport waiting for flights that were hours
away. Passengers simply had to wait until the reserve pilot
arrived. Now, the airline is allowed to assign the flight
to a waiting pilot, and turn that pilot's later assignment
to the reserve pilot when he or she arrives.

Mr. Glass, the US Airways vice president, said the
streamlining has only begun. "To be competitive and
survive, we have to keep working at improving the systems
we have, and we're not there yet," he said.

But Ms. Reiley, the Teamsters trustee, said her members
were "getting very angry" and would keep fighting to
protect their contracts.

http://www.nytimes.com/2003/04/29/business/29AIR.html?ex=1052624997&ei=1&en=ab522ed19ed6ce1b



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