Merger Madness

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January 17, 2008

To All IAM Members Employed by United Airlines

Dear Sisters and Brothers,

It has been recently reported in the press and on TV newscasts the “exploratory” merger discussions between United Airlines and Delta Airlines and Delta and Northwest are about to begin. This is not news to us at UAL… CEO Glenn Tilton has been beating the drums for over two years about the need for “consolidation” in the industry and the need for United “not to be left standing at the altar.” There has also been speculation in the press about efforts between United and Continental. One thing is sure… once consolidation begins (no matter the carrier combination) the rest will try and follow. Time is of the essence now, because the current White House is viewed as more likely being receptive to consolidation than maybe the next to move in.

Almost two years ago IAM General Vice President of Transportation Robert Roach, Jr. established an industry "merger committee" chaired by him and comprised of fifteen members, including myself and the PDGC's of Districts 142, 143, lawyers, economists, and research specialists among others. Its envisioned and stated purpose is to protect the interests of IAM members in all aspects, not the least of which involves the continuance of IAM representation, seniority, jobs, economic security, medical coverage and other benefits including pension protection/continuance.

As stated by IAM General Vice President Roach, Jr., “The Machinists Union has been involved in nearly every airline merger since pre and post airline deregulation. We are prepared to protect the interests of all affected workers by working with airline management and the appropriate government bodies to avoid the pitfalls of previous mergers. To do so we need (1) proper information, (2) a transparent process, and (3) a management team that demonstrates an ability to work with its employees. Without such a process we will be left with no choice but to openly oppose any merger that we determine to not be in the best interests of working people and their families, the flying public and the airline themselves. As you may recall, this was demonstrated in 2000 when the IAM openly opposed a proposed merger at that time between United and US Airways over the failure of the carriers to provide seniority and job security protections for IAM members on both airlines.

I cannot underscore enough that IAM District 141, along with our International Officers and the other transportation District Lodges 142 & 143 are committed to preserving, protecting and perpetuating the economic security and well being of our IAM members now and tomorrow. It is to that end we confidently proceed forward in solidarity to whatever the future may hold.

General Vice President Roach, Jr. has written a letter to CEO Glenn Tilton regarding the foregoing and will be published in the next issue of the District 141 “Messenger.”

As of this date we have not begun any discussions with United management but we will update you as events dictate moving forward. As my Brothers from Districts 142 and 143 have suggested to their membership, I would also urge our members ... please do not listen to rumors or hearsay ... we will provide you with information and facts ... not rhetoric.

Fraternally and in solidarity,

S.R. (Randy) Canale
President and Directing General Chairman

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January 16, 2008

Letter to Glenn Tilton re Merger Discussions

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Via Facsimile & U. S. Mail
Mr. Glenn F. Tilton
Chairman, President & CEO
United Airlines, Inc.
P. O. Box 66100
Chicago, IL 60666

Dear Mr. Tilton:

This letter was prompted by the growing reports of airline merger discussions. It has been reported that Delta is in discussions with Northwest and United to evaluate a potential merger with one of those carriers.

The IAM, through our Merger Committee, is currently evaluating the various scenarios that could result from your merger discussions. As the certified collective bargaining agent for the largest number of United Airlines employees, we expect to be made aware of any significant progress towards a merger within the limits of the law. It is, therefore, requested that you direct the appropriate management officials to have a dialogue with IAM officials so that we may have a transparent process.

As I have said previously in Senate testimony when US Airways tried to combine with Delta Airlines, the Machinists Union is prepared to protect the interests and continued IAM representation of all our members. Our goal in any consolidation includes, but is not limited to, protecting our members’ jobs, seniority, and benefits. Be assured we will continue to work hard to protect our members’ pensions as well. This is especially true since our members have been through some devastating times since 9-11. It appears that only United’s shareholders and executives benefited from the airline’s restructuring. The IAM will not support United using the money they extracted from our members in bankruptcy to fund a merger that could negatively impact our members’ careers.

If a proposed merger agreement adversely impacts IAM members and the flying public, the Machinists Union will partner with Congress, other labor organizations and any other entity to protect our members. We are committed to ensuring that no IAM member is adversely affected as a result of any merger or consolidation, even if that means that the merger ultimately fails.

Please have the appropriate officials contact President/Directing General Chairman Canale.

Sincerely,

Robert Roach, Jr.
GENERAL VICE PRESIDENT

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December 8, 2007

Unions Furious with Exclusion of Employees in UAL Payout

FOR IMMEDIATE RELEASE

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Chicago, Ill., December 7, 2007 - The leaders of the three largest Unions at United Airlines, Mark Bathurst, Chairman of the United Chapter of the Air Line Pilots Association (ALPA); Greg Davidowitch, United Master Executive Council President of the Association of Flight Attendants-CWA (AFA); and Randy Canale, President and Directing General Chairman of the International Association of Machinists and Aerospace Workers (IAM), District 141, issued the following statement in response to the decision of UAL executives, and approved by the UAL Board of Directors, to give a $250 million special payout to shareholders:

"ALPA, AFA and the IAM, representing the overwhelming majority of union-represented employees, are furious with the UAL Board of Directors and management's decision to give a special shareholder payout to the exclusion of employees.

"In every venue available, we have voiced our opposition to any 'shareholder initiative' that does not equally recognize employee sacrifices. We have warned management that this move is wrong for the business, wrong for the employees and ultimately wrong for lenders. These executives have pushed through their personal agenda while ignoring serious concerns raised by nearly every stakeholder, industry trends and the company's financial position. This is being done with utter disregard for the interests of employees and the long-term success of United Airlines.

"The best shareholder initiative would be one that invests in the employees for the long-term success of United Airlines. Shareholders in the pre-bankrupt UAL were issued new stock in the same manner as every other constituency, including the employees, when United emerged from bankruptcy. Today, employees who lost their pensions and work longer hours for less pay continue to suffer the affects of the bankruptcy. Not one penny of employee concessions has been repaid.

"Since United Airlines exited Chapter 11, UAL management has renegotiated excessive executive compensation packages for themselves and they have renegotiated their agreements with lenders. If they have the ability to renegotiate their own compensation packages, if they have the ability to negotiate with lenders, if they have the ability to negotiate with shareholders to create another management bonus, then they have the ability to enter negotiations with us."

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December 7, 2007

"Scrooged" Again

To: ALL IAM Members Employed by United Airlines

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Dear Brothers and Sisters:

Today the Company announced a $250 million dividend to shareholders to be paid in January of 2008.

Management decided a while back that they intended to make a substantial payment to shareholders, which of course includes themselves. Irrespective of the trends in this industry and the company's own financial position, lenders and of course, ignoring the views and interests of its employees, they once again feed at the trough.

When it comes to management recognizing your sacrifices and sharing it with the employees that made it possible. Their response ... with $90 dollar oil, it would be “ludicrous" for such consideration for you, but not of course for Tilton and his management team and their greedy friends to cash in, come hell or high oil.

We have voiced your concerns and your opposition to any “shareholder initiative“ that does not equally recognize your sacrifices. These same concerns have been expressed by ALPA and the AFA with their members and we are all in agreement on this issue.

In the coming months, you will see a renewed effort to bring this issue before those constituent groups which United senior management holds so dear. We will be joining with other employees to make our voices heard. A cultural transformation of respect for you by this company can be achieved with your Solidarity.

Nothing could be more “LUDICROUS” than endangering employee motivation, better customer experience, value of employees and a profitable airline. I will be providing additional information to the membership.

Fraternally,

S.R. (Randy) Canale
President and Directing General Chairman

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November 13, 2007

Machinists Oppose United’s MPI & Maintenance Proposals

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Letter to UAL CEO Glenn F. Tilton

Dear Sisters and Brothers,

There has been much speculation recently about United potentially selling of its United Services and Mileage Plus divisions. The Machinists Union has informed United CEO Glenn Tilton that we will strongly oppose the sale of any UAL asset that would negatively impact the jobs of any of our 21,000 UAL members.

Some have proposed that assets of such a sale should be used to reinstate the terminated pension plans now in the hands of the Pension Benefit Guaranty Corporation (PBGC). After an exhaustive legal review of the possibility that the PBGC could reinstate the pension plans, IAM attorneys, in conjunction with the law firm Lowenstein Sandler, have concluded that such a prospect is not possible. Although the PBGC has the legal authority to reinstate a pension plan and return it to an employer, they explicitly forfeited that right as part of their 2005 agreement with United to terminate the plans.

Should United decide to sell assets that do not affect the jobs of Machinist members, the IAM would insist the profits from any such sale be used to improve the future pension benefits of United employees, including those whose pensions were terminated in bankruptcy. The sale of any valuable UAL assets should not disproportionately benefit financiers and executives with outrageous stock grants and options. The IAM cannot allow our members to suffer further hardships while executives, banks and major shareholders stuff their already full pockets with cash.

United Airlines would not exist today if not for the sacrifice, hard work and dedication of IAM members and other front-line workers. Employees have suffered greatly because of the decisions of the same United executives who rewarded themselves for bankrupting the company. In the event of a sale of assets that would not impact the jobs of our members we expect IAM members to share in the value of such a sale. United has been advised, however, that the Machinists Union will vigorously oppose the sale of any UAL asset that could impact our members’ jobs.

Fraternally,

S.R. (Randy) Canale
President & Directing
General Chairman

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June 22, 2007

Photos- United Airlines CSRs - Austin, Texas

May 31, 2007

UAL Update

To All Local Chairpersons and Local Committee (PCE) Reps Employed by
United Airlines

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Dear Brothers and Sisters:

I wanted to take this opportunity to thank all of you for your efforts and support for the successful “Day of Action” rally and nation wide activities. In the coming weeks and months ahead you will see evidence of your solidarity and message delivered as workers in the transportation industry to the political arena and within our industry as well.

For those of you who were able to join us in Seattle for our Local Chairperson’s
conference, I hope you found the conference beneficial and helpful in carrying out your day to day efforts in behalf of our membership and union back home. It was certainly beneficial for your District Officers to receive your thoughts, concerns, and suggestions in our workshop format where consensus was achieved in a number of areas. I appreciate the suggestions received for consideration at next year’s conference and I intend to implement a number of the ideas put forth.

I also wanted to report back to you that we are following-up on a number of issues discussed and presented during our workshop sessions.

One in particular is our continuing efforts to bring work back in-house (insourcing) and possible new opportunities of work as well for our members to perform. A few months ago, I assigned AGC Miriam Seewald to head up a committee to explore with UAL such opportunities in the stores department. To protect our jobs from outside vendors and to seek opportunities to compete with vendors for additional work our members could perform in-house. In no small part due to AGC Seewald's leadership and work of her committee in meetings with UAL, approximately 200 of our storekeeper jobs were protected and saved. The Committee is continuing its ongoing meetings with UAL to continue to explore other work opportunities for our members and cost savings to UAL.

It is in that same light that I have assigned AGC Delaney to meet with UAL and
explore a similar criteria or consistent formula to be utilized by our local committees (Ramp & PCE) along with local management to bring work back in-house (insource) and/ or additional work opportunities not now being performed by our members, but which could be. Some examples already being reviewed are thru cleans, overnight cleans, incidental fueling opportunities and ground handling of other airlines. As outlined at the Chairperson conference by AGC Delaney, this means competing with vendors in a way that is cost saving to UAL and work opportunities for our members at the local level. AGC Delaney's initial meetings with UAL have gone well with progress in adopting a criteria moving forward (a report has been provided to your AGCs by AGC Delaney). Additional discussions are continuing to finalize this program and when complete, additional information will be forthcoming.

Once we have a program in place with UAL, we will begin training at the local station level or at our District offices in Chicago to provide our Local Committees with the tools to move forward in exploring such job opportunities in behalf of our members. When it comes to vendors, we know our members are superior in doing the work and now we should have an opportunity to compete in the economic arena as well.

Another topic of much discussion at the LCC conference as well, was the Family Medical Leave Act (FMLA). AGC Asuncion was assigned to conduct the workshop and did an excellent presentation and exploration of the issues surrounding the FMLA law and corporate abuses in many cases violating the law, more so than our agreements which, if contractual violations, are grieved and remedied. The workshop discussions highlighted that the more recent violations abound under the law. With that in mind and in follow-up to the LCC conference, AGC Asuncion is reviewing with legal counsel some possible suggested ways to move on the infractions of the law itself in the legal arena. Upon completion of AGC Asuncion's review additional information will be provided to you.

Once again, on behalf of our District Officers, General Vice President Robert Roach, Jr. and myself, we thank you for the work you do every day for our membership, your ongoing support and solidarity that is so vital for the aspirations of our members and your Union.

You are the best.

Fraternally,

S. R. ( Randy ) Canale
President & Directing
General Chairman
 

April 11, 2007

UAL Profit Sharing

To: All IAM Local Chairpersons & PCE Committeepersons

Dear Sisters and Brothers:

United Airlines reported profit for the year 2006 was achieved in no small part through the efforts of IAM members employed by United Airlines.

Under our 2005-2009 IAM/UAL Agreements, the 2006 profit announcement triggered provisions providing compensation in the form of profit sharing for eligible employees with W-2 Compensation earnings for the year 2006.

Enclosed is a letter from United; along with a question and answer document which should assist you in answering questions from the membership. This information will also appear in the May issue of the Messenger and on the District 141 web site.

 Letter from United

As you will note under the wage rules /compensation provisions of our Agreements the7.5% will double to a 15% payout of any qualified profits achieved in 2007.

Sincerely & Fraternally,

S. R. (Randy) Canale
President & Directing
General Chairman

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March 29, 2007

UAL Labor Coalition - UAL Management Compensation

To: All IAM Members Employed by United Airlines

Dear Sisters and Brothers:



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A coalition of four AFL-CIO Unions (ALPA, AFA-CWA, PAFCA, IFPTE) and another organization (AMFA) have formed a coalition to protest United Airlines’ management compensation and bonus programs. The IAM, ALPA, AFA-CWA, PAFCA and IFPTE are already in a union coalition called the AFL-CIO. Some unions, however, have chosen to form a new coalition outside the AFL-CIO. The largest Union of UAL employees, the 20,000 IAM members of District Lodge 141, declined the invitation to join the new coalition. Participation by the IAM in this coalition would have required your Union to violate AFL-CIO union principles, doctrine and official policy, which we refused to do. The other AFL-CIO Unions in the coalition have chosen to violate AFL-CIO policy, and the AFL-CIO will address the violations.

I will discuss this matter in greater detail with the membership in the April issue of the District 141 Messenger (our monthly publication mailed to each member). The District 141 Executive Board (Assistant General Chairpersons and other Officers of the Board) were advised a number of weeks ago that we would not be participating in the coalition and to brief our Local Committees of this fact.

Let me make it very clear – we agree that UAL management's compensation and bonus programs are excessive and offensive for a company that has just exited from bankruptcy and forcefully used the provisions of the bankruptcy court to extract billions of dollars from their employees. It offends our members, union representatives and leadership at all levels of our Union.

This compensation complaint, however, and other issues raised by the coalition is somewhat late in being raised today. But I guess for some, it’s better late than never.

The fact is your Union, the Machinists Union, took on this fight during the bankruptcy court process when management compensation was being decided as part of United’s restructuring proposal to the court. The IAM was the primary union to argue against UAL’s proposed management compensation package. The grotesque size of the management incentive plan was the IAM’s principal objection to United’s plan of reorganization. Other unions’ arguments against management compensation were secondary and paled in comparison to the IAM’s efforts. The IAM unquestionably led the fight in bankruptcy court on this issue.

As bad as the current management compensation plan granted by the court is (and, in our view, it is reprehensible), the IAM's arguments helped reduce the original UAL management compensation proposal by forty-five percent (45%) from the initially proposed plan. The IAM was still not satisfied with the reduction and continued to argue for further reductions, but the bankruptcy court approved the compensation plan with the 45% reduction.

The IAM was the only Union to take up this fight a year and a half ago. Had it not been for the efforts of the Machinists Union the compensation package would not have been reduced by 45%. This reduction led to an additional 8,750,000 shares of stock to be distributed to employees and unsecured creditors. Details of the IAM’s fight and successful results are available on the District 141 website, www.iam141.org/ual.htm.

Although other unions are complaining now, a year and a half too late, the Machinists Union took the lead in fighting UAL in court. Press releases and public statements get attention, but only the Machinists backed up our outrage with strong action when it counted and produced results.

The IAM was also the only UAL Union to negotiate a defined benefit pension plan (the IAM NPP), which is still an issue for some unions in the coalition. Not even management employees have a pension plan. Again, while others whined and made idle threats, only the Machinists Union produced the results for our members.

We are working in the real world for our members and will not lead you down a path paved with promises that comes to a dead end. The IAM is preparing now for the next round of negotiations and will address our members needs within the full and legal rights afforded us under the Railway Labor Act - including self-help as a last resort if that need be the case.

Another issue raised by the coalition and already addressed by the IAM in your contract is the opportunity to open negotiations substantially earlier than the minimum mandated under federal law. This is already in your contract. However, the labor agreements as approved by the bankruptcy court are a part of UAL’s restructuring plan and the money loaned to UAL are based in part on these labor agreements and their duration.

The IAM has already been meeting with UAL’s corporate officers, station managers, directors and labor relations staff on a regular basis for months concerning other issues and operational concerns raised by the coalition, such as quality of life, jobs, etc. These meetings have already been scheduled to continue through the remainder of the year.

We will continue to explore with the Company other success sharing ideas and concepts. This is in addition to the success sharing and profit sharing already negotiated in our contracts for IAM members employed by United.

Unlike some ad hoc coalitions, we in the IAM have the ability, experience and resources to continue representing IAM members without conceding real union principles and ideals by which we have taken an oath to uphold and perpetuate for the good of working union families.

We will, in the true spirit of solidarity, continue to communicate with the AFL-CIO-affiliated unions representing other United employees as envisioned by the AFL-CIO, of which we are a proud, loyal member and longtime affiliate.

In Solidarity, I remain,

Fraternally,

S. R. (Randy) Canale
President & Directing
General Chairman

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February 2, 2007

UAL Profit Sharing

To : All IAM Members Employed By United Airlines

 

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Dear Sisters and Brothers :

The announcement by United Airlines of their reported profits for the year of 2006 is do in no small part to the efforts of the employees of United Airlines. The announcement also triggers under our 2005 - 2009 IAM/UAL Agreements, provisions providing compensation in the form of Profit Sharing payments for eligible IAM/UAL represented employees for the year 2006 reported.

We have begun preliminary discussions with the Company and will along with our financial advisers develop a Question and Answer document for all IAM represented employees. We will be gathering information from the Company reflecting the total 2006 W - 2 earnings and other employee data for eligible IAM/UAL represented employees in accordance with the IAM/UAL Agreements. Profit Sharing payments for the program year 2006 will be distributed May 1, 2007.

We will further update you as our discussions with the Company make it possible to do so.

Fraternally,


S. R. (Randy) Canale
President & Directing
General Chairman

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January 9, 2007

Home Agent Update

To All Reservation Agents and MPI Members Employed by United Airlines

Dear Sisters and Brothers:

The Home Agent Committee met on January 3-5, 2007 and has reviewed all aspects and issues concerning the Home Agent Program being considered by some airlines. The Committee did not take a position for or against the Home Agent concept. Our goal was to develop and recommend guidelines for negotiators to utilize in future negotiations.

The Committee established the proposed guidelines to protect the interests of any and all members who could be affected by this program. These recommendations have been forwarded to the Grand Lodge Legal Department for review. After the Legal Department’s review, the recommendations will be forwarded to each District Lodge’s President/Directing General Chairman for their utilization.

We thank you for you contributions, support and patience in this matter.

Fraternally, 

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December 13, 2006

Machinists Respond to UAL/Continental Rumors

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The International Association of Machinists and Aerospace Workers' (IAM) General Vice President Robert Roach, Jr. today issued the following statement in response media reports that Continental Airlines and United Airlines are discussing a possible merger:

"The Machinists Union has not been contacted by United or Continental about any potential merger. The IAM is fully prepared to defend the wages, contracts and defined benefit pension plans earned by our 25,000 members at United and Continental. The IAM's Transportation Merger Team is also prepared to respond to any airline merger scenario. In the event a United-Continental merger did occur, United's Flight Attendants could gain the defined benefit pension plan currently enjoyed by our United Airlines members and being ratified by our Continental Flight Attendants."

The IAM represents 16,000 United Airlines Ramp & Stores, Public Contact, Food Service, Fleet Technical Instructor, Maintenance Instructor, Security Officer and Food Service employees. United's IAM members are the airline's only employees to successfully negotiate a defined benefit pension plan in bankruptcy, the multi-employer IAM National Pension Plan.

The Machinists Union also represents more than 9,000 Continental Airlines Flight Attendants; the highest paid Flight Attendants in the industry. Already the largest union at Continental, the IAM has active organizing campaigns underway for the airline's Fleet Service, Passenger Service and Reservation employees.

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September 15, 2006

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August 22, 2006

UAL to Close Dulles Reservations Center

(IAM Transportation NewsWire)

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United Airlines announced it will close its reservation center located near Dulles Airport in Virginia around October 16, 2006. The closing will affect more than 450 workers.

"Reservation center closings are becoming too common place as work is shipped across the globe," said General Vice President Robert Roach, Jr. "The Dulles Center closing is different, however, because United used the bankruptcy process to reduce wages so low that they can't attract a reliable workforce."

UAL officials cited a 40% turnover rate as a major factor in the center's closing. IAM members have contractual protections that allow them to bid to other reservation or airport locations based upon their seniority.

"This is a problem United created for itself and will plague the airline for years," said Roach. "United is competing with the fast food industry for new workers, and the airline is losing."