The recent proposal of several airline mergers comes
with many opinions from executives, union leaders, shareholders and Wall
Street Analysts. The most important element at any airline, however, is
its employees. The Machinists Union wants to know what YOU think
about airline mergers. This brief survey is one of the ways we
hope to better understand how employees at the airlines feel about
potential mergers; and what expectations you have, should a merger with
your employer be completed.
The International
Association of Machinists and Aerospace Workers (IAM) today urged
lawmakers to resist appeals to approve additional airline consolidation,
calling instead for measured re-regulation of fares and capacity as the
only way to ensure safe and reliable air transportation in the United
States.
“Limited re-regulation
is the only long-term solution for an industry that is continually
seeking government assistance,” said IAM General Vice President Robert
Roach, Jr., at a Senate Commerce Committee hearing on the state of the
airline industry. “This industry is simply unable to turn away from
pricing its product below the cost of providing it, further perpetuating
the chaotic spiral that brings us here today.” The IAM’s complete
testimony is available at
www.goiam.org/mergers.
“Airlines today compete by
cutting standards, eliminating services and reducing ticket prices to
the bone, which makes a profitable industry impossible,” said Roach.
“The Government Accountability Office estimates that median ticket
prices have dropped nearly 40 percent since 1980, while the costs of
aircraft, airport leases and fuel have increased dramatically.”
“When an industry essential
to the national economy can no longer function, it is the responsibility
of elected representatives to step in and provide the necessary guidance
and stability,” said Roach.
The U.S.
House Committee on Transportation and Infrastructure's Subcommittee
on Aviation has announced a hearing on airline industry consolidation
and the proposed Northwest-Delta Air Lines merger. Subcommittee
Chairman Jerry Costello has invited IAM General Vice President
Robert Roach, Jr. to testify.
All
IAM Transportation members who live in the Washington, D.C. area or
can easily travel to D.C. are invited to attend and show support for
the Machinists position against senseless airline mergers.
WHAT:
House Committee on Transportation And Infrastructure's Subcommittee
on Aviation hearing on the "Impact of Consolidation on the Aviation
Industry, with a Focus on the Proposed Merger between Delta Air
Lines and Northwest Airlines."
WHEN:
Wednesday, May 14, 2008 at 2:00 PM - Get there early
to ensure a seat
Thanks to a year-long campaign by a
handful of airline CEO’s, a series of massive and disruptive mergers
are threatening to reshape the troubled industry, culminating in a
monopoly-like atmosphere for the few carriers that remain.
In addition to the recently announced
merger between Delta and Northwest Airlines, which would create the
world’s largest airline, there is widespread speculation that United
Airlines, Continental Airlines, US Airways and American Airlines may
also be forced to consider mergers to remain competitive.
To keep IAM members advised of the
developments in the this latest shakedown of airline passengers and
employees, the IAM created ‘Merger Watch’, a special web page at
www.goiam.org/mergers to provide news and information on the
merger-related developments.
In addition to IAM updates, Merger Watch
will provide links to news releases, testimony, videos and
background information about proposed mergers and how they could
affect IAM members, their families and their contracts.
Members are
encouraged to visit
www.goiam.org/mergers and speak out with your comments/opinions
about airline consolidation.
Machinists
President to Testify at Airline Antitrust Hearing
House
Judiciary Committee Chairman John Conyers, Jr. (D-MI) announced that
the Committee's Taskforce on Competition Policy and Antitrust Laws
will hold a hearing titled, "Competition in the Airline Industry" on
Thursday, April 24, at 10 a.m. in room 2141 of the Rayburn House
Office Building. Among the issues to be addressed will be the
recently announced Delta Airlines merger with Northwest Airlines.
Machinists Union International President R. Thomas Buffenbarger will
testify on the merger’s impact on employees. The CEOs of both
companies – Richard H. Anderson (Delta) and Douglas M. Steenland
(Northwest) - will also testify.
All
IAM transportation members who live in the D.C. area or can easily
travel to Washington, D.C. are invited to attend and show
support for the Machinists position against senseless airline
mergers.
WHAT: House
Judiciary Taskforce on Competition Policy and Antitrust Laws
hearing, "Competition in the Airline Industry"
Merger Watch Issue March 20, 2008 Click
on graphic below to view
Passenger Rights Group Asks For IAM Member Action March 17, 2008
The Coalition for an Airline
Passengers’ Bill of Rights (CAPBOR) was formed by passengers who
were stranded on several American Airlines planes for up to 9 hours at
Austin International Airport on December 29, 2006. When airlines push
aircraft from the gate and park them for hours without sufficient food,
water, functioning restrooms or timely information, front-line employees
have to deal with the fallout of poor management decisions.
The IAM and the CAPBOR are both alarmed about how potential airline
mergers will affect airline employees and passengers, the two groups
essential to an airline’s success. "We believe the IAM is an outstanding
organization that fights for workers rights and cares about the
well-being of passengers," said CAPBOR President Kate Hanni. "We ask IAM
members to join us in our fight to ensure airline executives treat
passengers with dignity and respect at all times. Visit our website,
www.flyersrights.org, and sign the petition on our Get into Action
page to support a Bill of Rights for airline passengers."
Merger Watch Issue March 10, 2008
Click on graphic below to view
Merger Watch Issue March 6, 2008
Click on graphic below to view
Merger Watch Issue February 28, 2008
Click on graphic below to view
Merger Watch Issue February 26, 2008
Click on graphic below to view
Machinists, Passenger Rights Group Join Forces February 26, 2008
The IAM and the nation’s largest
passenger rights group are joining forces to oppose any combination of
United Airlines, American Airlines, Northwest Airlines, Continental
Airlines and Delta Airlines. The Machinists and the Coalition for
an Airline Passengers Bill of Rights (CAPBOR) will coordinate
legislative efforts and make the case that mega-mergers are not in the
best interests of the flying public, airline workers or the cities the
airlines currently serve.
“Airline employees and airline passengers have every right to be
concerned about the negative impact of airline consolidation,” said
Transportation GVP Robert Roach, Jr. “These are the two groups
essential to an airline’s success, yet they are the ones who are hurt
the most in mergers. Airlines must work with employees and cater to
passengers if they expect to succeed.”
The Coalition for an Airline Passengers Bill of Rights is the largest
non-profit consumer group for airline passengers in the United States.
CAPBOR is the fastest growing grassroots coalition in history with over
21,000 members since being established February 10th, 2007.
“The importance of this alliance cannot be overstated and we look
forward to working with the IAM,” said Kate Hanni, founder and Executive
Director of CAPBOR. “Airline passengers bear the brunt of poor
service. Combining two major airlines with diverse corporate cultures is
a recipe for disaster.”
Merger Watch Issue February 25, 2008
Click on graphic below to view
February 25, 2008
Machinists Union, Passenger Rights Group Partner to Block Airline
Mergers
The International Association of Machinists and
Aerospace Workers (IAM) and the Coalition for an Airline Passengers Bill
of Rights (CAPBOR) today announced they would join forces to oppose the
potential merger of major U.S. air carriers.
“Airline employees and airline passengers have every
right to be concerned about the negative impact of airline
consolidation,” said IAM's General Vice President Robert Roach, Jr.
“Employees and passengers are the two groups essential to an airline’s
success, yet they are the ones that are most hurt in mergers. Airlines
must work with employees and cater to passengers if they expect to
succeed.”
The IAM and CAPBOR will work together to oppose
ill-advised mergers by coordinating legislative efforts and by
demonstrating that mega-mergers are not in the best interests of the
flying public, airline workers or the cities the airlines currently
serve.
“The importance of this alliance cannot be
overstated and we look forward to working with the IAM,” said Kate Hanni,
founder and Executive Director of CAPBOR. “Airline passengers bear the
brunt of poor service. Combining two major airlines with diverse
corporate cultures is a recipe for disaster.”
The Coalition for an Airline Passengers Bill of
Rights is the largest non-profit consumer group for airline passengers
in the U.S. CAPBOR is the fastest growing grassroots coalition in
history with over 21,000 members since being established February 10th,
2007. For additional information visit
www.flyersrights.org.
February 19, 2008 Labor Leaders Prepare for Possible Airline Mergers
AFL-CIO union leaders declared they would use any and all options to
oppose airline merger proposals that failed to meet the needs of
employees and the traveling public. “Through decades of
experience, we know that corporations will pursue their own interests
and ignore the impact of their decisions on employees unless the workers
are at the table with a strong voice through strong unions,” said
AFL-CIO Secretary-Treasurer Richard L. Trumka and AFL-CIO Transportation
Trades Department President Ed Wytkind in a joint statement following a
meeting of AFL-CIO transportation unions. “We will review the
implications of all possible airline mergers on jobs, on collective
bargaining rights, on service to the flying public and on the
communities that rely on this industry for transportation needs.”
Airlines that only recently emerged from bankruptcy are now clamoring
for a massive restructuring that could leave passengers with fewer
choices, communities with less service and employees facing a new round
of cost-cutting efforts. The AFL-CIO leaders pledged an all-out
effort to oppose any “poorly conceived” merger proposal that does not
protect workers’ collective bargaining rights. “We will engage
elected officials at the highest level to ensure the voices of workers
are not drowned out by voices of greed and Wall Street who may seize
this moment as a chance to create wealth for a few at the expense of
many,” said Trumka and Wytkind. Democratic presidential candidate
Sen. Hillary Clinton (D-NY) also weighed in on the possibility of
airline mergers, coming down squarely on the side of airline workers and
passengers. “If carriers decide to combine in order to cut costs and
increase their market clout, we will have to take a hard look at the
potential effects on workers and consumers,” said Sen. Clinton.
“It is important that we preserve choice and competitive pricing in the
airline industry. It is also vitally important that any proposed merger
preserve the jobs and worker protections on which thousands of families
rely.”
February 15, 2008
Airline Consolidation? Hell No
The chairman of the House Committee on Transportation & Infrastructure
says a merged Delta-Northwest or United-Continental would hurt
consumers.
Read Article
February 14, 2008
Hillary Clinton Weighs in on
Possible Airline Mergers
February 14, 2008 - Sen. Hillary Clinton (D-NY) today issued a press
release addressing her concerns and those of airline workers across
America regarding the possibility of airline mergers. “According
to press accounts, merger talks are occurring in the airline industry,
as companies face the prospect of a slowing economy and high fuel
prices,” said Clinton. “If carriers decide to combine in order to
cut costs and increase their market clout, we will have to take a hard
look at the potential effects on workers and consumers. It is
important that we preserve choice and competitive pricing in the airline
industry. It is also vitally important that any proposed merger
preserve the jobs and worker protections on which thousands of families
rely.”
February 14, 2008
Labor Movement United to
Protect Airline Employees in Possible Mergers
WASHINGTON, D.C. - Richard L. Trumka, Secretary-Treasurer, AFL-CIO and
Edward Wytkind, President, Transportation Trades Department, AFL-CIO
issued the following statement following today's meeting of the national
AFL-CIO aviation union leaders to review and develop a strategy in
response to the latest wave of possible airline mergers:
"The American labor movement is
deeply concerned about possible mergers between the major air carriers.
Through decades of experience, we know that corporations will pursue
their own interests and ignore the impact of their decisions on
employees unless the workers are at the table with a strong voice
through strong unions.
"We are united in our commitment to protect airline employees from the
severe harm that may stem from poorly conceived airline consolidations
that ignore the needs of employees and the flying public.
"We will move forward after today's meeting unified around the following
principles:
"We will review the implications of all possible airline mergers on
jobs, on collective bargaining rights, on service to the flying public,
and on the communities that rely on this industry for transportation
needs.
"We will use any and all options - including deployment of legislative,
political and capital strategies - to leverage the strength of working
people to ensure this latest merger mania doesn't harm this industry,
its employees, passengers and communities.
"We will engage elected officials at the highest level to ensure the
voices of workers are not drowned out by voices of greed and Wall Street
who may seize this moment as a chance to create wealth for a few at the
expense of many."
###
The Transportation Trades
Department, AFL-CIO, represents 32 member unions in the aviation, rail,
transit, trucking, highway, longshore, maritime and related industries.
For more information, visit www.ttd.org.
February 13, 2008 Machinists Union on Edge About Airline
Deals
The
country's largest airline union is
poised to oppose any mergers in the
industry, starting with the possible
combination of Delta Air Lines and
Northwest Airlines, which could
potentially reduce the number of workers
represented by organized labor.
Read Article
February 13, 2008
Who Really Benefits from
Airline Mergers?
A major omission in the
debate over airline industry consolidation is its impact on
workers. The Machinists Union has assessed the effect of
potential airline mergers and determined that any of the
combinations being proposed would have an adverse effect on the
cities the airlines currently serve, the flying public, and the
employees that have given major concessions to allow these
airlines to continue flying. If an IAM-represented airline is
merged with an airline whose employees in comparable work groups
are not unionized, such as Delta Airlines, AirTran or some
Continental Airlines ground employees, IAM members’ contracts
and right to union representation could be jeopardized.
(l to r)
General Vice President Robert Roach, Jr.; IAM District 141
President/Directing General Chair, Randy Canale; IAM
District 142 President/Directing General Chair, Tom
Higginbotham; IAM District 143 President/Directing General
Chair, Stephen Gordon
February 13, 2008
Dear Brothers and Sisters,
The airline industry is abuzz about the prospect of two or more airlines
merging. Money-merchant hedge funds are pushing for airline
consolidations so they can receive a windfall of cash in a merger, but
they don't have a lot of company. However, employees, airport
authorities, passengers, small communities, and airline lessors are just
some of the groups that are usually harmed on mergers. The
Machinists Union have been meeting with key members of Congress and the
U.S. Senate to convey our concerns in any merger scenario. The elected
officials we have spoken with share our apprehension and have indicated
they would hold hearings on potential mergers. From our
discussions with politicians, we believe that there is widespread
partisan opposition to airline consolidations. The IAM's Merger
Team has been active since 2006 evaluating potential mergers. The
Merger Team consists of attorneys, economists, Transportation District
Lodge Presidents, IAM Lobbyists and Transportation Department staff.
Read more.
February 13, 2008
Dear Mr. Kellner:
Chairman of the Bd. & C.E.O.
Continental Airlines, Inc.
This letter is to confirm our
discussion regarding potential airline mergers in
which you verified published reports that
Continental Airlines prefers to remain a stand alone
carrier. However, you stated that, in the
event other carriers start the consolidation
process, Continental Airlines will be forced to
explore strategic alternatives. The lAM,
through our Merger Committee, is currently
evaluating the various scenarios that could result
from potential merger discussions. As the
certified collective bargaining agent for
Continental and Continental Micronesia Flight
Attendants, you have assured me that the Machinists
Union will be notified and kept apprised of merger
issues, within the limits of the law.Read letter to Kellner.
February
13, 2008
The
State of the Airline Industry:
The Potential Impact of Airline Mergers and Industry Consolidation
January 24, 2007
Testimony of Robert Roach, Jr., General Vice
President
International Association of Machinists and Aerospace Workers
Before the Senate Commerce, Science and Transportation CommitteeRead Roach's Testimony
IAM Journal article from Spring 2007 "A
Shake Up in the Wings"
Read article
February
13, 2008