Roach:Motives Behind Chatter?

April 15, 2010 — (reprinted from Transportation NewsWire, issued by IAM’s grand lodge

Airline Consolidation Rumors
Take Flight

On the heels of a single article that quoted an unnamed source about the prospect of additional mergers in the airline industry, US Airways stock surged as much as 26 percent in after hours trading and UAL stock jumped by eight percent.

In a subsequent article by Ted Reed published in TheStreet.com, IAM Transportation General Vice President Robert Roach, Jr., questioned the motivation behind the latest consolidation rumors. “This could be speculators pushing up the price of the stock, or it could be a ploy to get Continental to make a move on United,” said Roach, who noted the code sharing and anti-trust immunity arrangements between United and Continental.

Single, anonymous rumor
bumps stock higher. Coincidence?

If a United-US Airways merger ever gained traction, it would not be the first time such a pairing was attempted. A $4.3 billion deal in 2000 was shot down after opposition from the Machinists Union and the U.S. Justice Department, and merger talks in 2008 ended unsuccessfully after several months.

“If there were only two airlines left in the country, I am sure they would be complaining about too much competition and trying to merge,” said IAM International President Tom Buffenbarger.

Airline executives and industry analysts generally favor additional consolidation as a heavy handed means to reduce capacity and increase ticket prices. Passengers, communities and airline employees are generally less enthusiastic mergers, having already witnessed the layoffs, service cuts and higher prices that typically follow corporate mergers.

“The IAM is understandably skeptical of the so-called synergies, efficiencies and other benefits touted by airline executives,” said Roach. “Our interest and our resources are focused exclusively on protecting the welfare of our members and our potential members in this turbulent industry. The IAM Transportation Merger Team, established in 2006, continues to monitor all potential pairings and how they might affect our membership.”

striking a Nerve at Delta

April 12, 2010 — (reprinted from Transportation NewsWire, issued by IAM’s grand lodge

The IAM Transportation Department led a week-long, nationwide organizing blitz of Delta Air Lines workers that was so successful the airline's CEO resorted to the threat of arrest in hopes it would impede the organizers' progress.

Wrong again, CEO

More than 100 organizers from the Transportation Department, Grand Lodge Organizing Department, Southern Territory, Districts 141, 142 and 143 and a half-dozen Local Lodges nationwide engaged thousands of Delta workers through personal visits to their home and by telephone. More than 2,500 homes were visited in Delta's home city of Atlanta alone.

“Locals in Detroit, Memphis, Minneapolis and Seattle reached out to thousands of Delta workers to answer their questions about the Machinists Union and the election process,” said Transportation Coordinator Jay Cronk.“Teams of IAM organizers visited Delta workers throughout Atlanta, New York and Salt Lake City. In an overwhelming majority of cases, Delta workers welcomed the opportunity to speak with IAM representatives outside of their workplace. Delta's use of fear and intimidation to prevent employees from learning about the IAM at work is widespread, but at home the employee is in charge and they are open to hearing what the IAM has to offer.”

Some issues repeatedly raised by Delta workers included how Delta managers question workers seen speaking to union representatives, why Delta refuses toe allow the IAM access to workers and how union literature is routinely destroyed by management.

Another measure of the IAM's success is Delta's response. CEO Richard Anderson urged employees to call the police if they felt threatened by the IAM trying to speak with them. The IAM received no reports that anyone took this advice or felt threatened. To the contrary, many people reported that they felt relieved to be free to discuss the union for the first time.

“The IAM will speak with every Delta employee who has questions about the Machinists Union,” District 143 President Stephen Gordon. “We are not intimidated one bit by Delta's threats. In fact, so many Delta workers we visited signed the election request cards necessary to hold an election we intend to expand the home visit program to additional cities.”

More information about the IAM's campaign at Delta is available at www.IAM4Delta.org.

Robert Roach Jr On UA/US