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updated 07/18/2008 3:58 PM
July 18, 2008District 143 continues to receive zero information from NWA regarding the pending acquisition between NWA and Delta. As many of you are aware, both Companies have agreed on their executive team that will take effect once the transition receives government approval. Our organizing efforts continue with success on all levels. It is important for everyone to understand that this organizing campaign is a marathon and not a sprint; we will be there for the long haul. The opening of our new office in Atlanta only solidifies our continuing commitment to organize Delta employees. Additionally, we have started our internal campaign. Many of you may or may not have heard that District 143 is currently handing out Merger Watch cards (cards that members fill out with name/address/e-mail) as well as pledge cards (cards that members fill out in support of the IAM/not in support of the IAM/volunteering their help in our various campaigns) and we ask that members contact their respective stewards or local grievance committees in order to obtain either of these cards. District 143 has been advised of several managers in various locations threatening our membership as well as telling them that the Union will not be there to help them after the merger and that we should get used to the new style of management – it’s "do what you're told or you will be fired." We ask that if anyone has information of management disrespecting our organization and the membership thereof, to please report it to your stewards and your committees right away so that we can be sure to address these issues immediately.
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Help Preserve Our Jobs!
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The announced Northwest-Delta merger prompts many questions. See the Merger Q&A to some initial questions Northwest's IAM members may have. Your IAM representatives will be continually adding to this document as information and answers become available. Members with specific questions should submit them through this website or contact an IAM representative.
Delta and Northwest have announced their intention to go forward with a mega merger deal over the strenuous objection of the IAM, Northwest pilots, key Congressional leaders as well as consumer and community groups. Northwest will be acquired by Delta, and the new carrier will be headquartered in Atlanta, with Richard Anderson as the CEO. If the necessary approvals are obtained from the Department of Justice, and that is a big if, the combined carrier will begin with a combined workforce of 80,000. Richard Anderson has given his word that no employees will be "involuntarily" laid off and no hubs will be closed. If you were to believe him, you would also believe that the Indians got a good deal for Manhattan.
We know Richard Anderson all too well. He came to Northwest after working for the union buster Frank Lorenzo at Continental. He became the CEO of Northwest from 2001-2004 who betrayed our trust in refusing to pay IAM members for their Series C stock for the wage cuts they took in the 90s. He is the same guy who, when he became CEO of Delta, promised that he would operate the company as a "stand alone" carrier. He is the same guy who, when he was worried that his Delta ramp workers would unionize, promised them a pay raise which he quickly revoked when merger talks stalled. In our opinion, and based on our experience, he speaks with a forked tongue. Analysts have predicted that, if this merger is approved, we can expect the closure of Memphis and Cincinnati at a minimum, and service will be discontinued to a number of smaller communities. We can expect massive layoffs and dislocation among both workforces. We can expect the Richard Anderson will use Lorenzo tactics, spare no expense, and use every resource at his disposal to insure that Delta remains a largely nonunion carrier.
However, before Northwest, as we know it, goes out of existence, there are a number of high hurdles in front of Anderson and Steenland both. They will have to prove to the DOT and the DOJ that the merger is not anti-competitive. They will also have to show how eliminating thousands of jobs that pay a living wage is in the best interest of this country during a recession. They will also be called before Congress to justify how the merger they propose, which will massively harm so many and massively benefit so few, should be allowed to go forward. There are also various state Attorney Generals who may also take action to stop the elimination of service to their states which this merger will surely cause. Your union, in anticipation of this announcement, has been working with its many allies in Congress, including our great friend Congressman Oberstar, our allies in the labor movement, and with consumer and community groups to resist the devastating impact of this merger. You will be hearing more as Congressional hearings are announced.
We expect that this will be a difficult struggle, but your District, with the full support of the International, is committed to saving living-wage employment in this industry and to preserve the livelihood of our members. However, if the merger obtains governmental approval, we will be calling on each of you to vote for continued union representation in an NMB-sponsored election among employees of the former Delta and Northwest Airlines. If more than 50% of employees of the combined carrier do not bother to vote, there will be no union representation. Then Richard Anderson will not be restrained by a collective bargaining agreement, and we can expect many more promises made and promises broken.
There is a reason that Northwest has refused to meet and discuss their merger plans with us. It is because we are not in their plans. However, be assured that we intend to fight this ill-conceived merger plan with every resource we have. They may not meet with us—but they will hear us.
The Machinists Union strongly opposes mergers among the major airlines: airline hubs will be eliminated, service frequency will be reduced, competition will be diminished, jobs will be lost, customer service will deteriorate and pension obligations will be jeopardized and fuel prices will remain unaffected by a merger. The IAM is part of a coalition of consumer advocates, political leaders and passenger rights groups who oppose the mega-mergers, but we need your help. All IAM members are asked to contact their elected representatives and urge their opposition for airline mergers that will only benefit airline executives and bankers.
Please contact your US Senators and Representatives as soon as possible to voice your opposition to this merger by clicking on the following link: Send an Email !
The recent announcement that Northwest Airlines and Delta Air Lines are seeking to merge is just the latest chapter in the crisis-filled history of our beleaguered industry. Airline employees are right to ask if this is a recipe for failure on a grand scale. I would not blame any airline employee who sees this as nothing more than a power play by airline executives at the expense of employees and passengers. Your cynicism would be more than justified by the events of the past few years. I share these concerns.
We will need the solidarity of the membership if we are to have any success protecting our jobs, our contracts and our pensions. It will come as no surprise if airline executives attempt to manipulate the merger process to reduce or eliminate the presence of union contracts at the combined carrier.
The Machinists’ Transportation Merger Team has evaluated a Northwest-Delta merger and weighed the benefits and hardships it can bring for employees. We have determined that this merger poses a significant risk to the jobs, pensions and welfare of our members. Therefore, the Machinists Union is strongly opposing this merger just as we did when United Airlines proposed merging with US Airways – a merger attempt that ultimately failed.
The IAM will be calling on our members to help protect their jobs by taking action in the halls of Congress, visiting politicians in their home states, and participating in rallies nationwide. We are 700,000 active and retired members strong. The politicians must listen to us.
If this proposed merger actually does occur, we intend to remain the collective bargaining representative at the combined airline and will need your full support to accomplish that goal.
Monitor the District 143 website, www.iam143.org, for the survey announcement, a merger Q&A and other merger news as it becomes available. The website will be continually updated as the proposed merger develops.
On April 13, 2008 the Wall Street Journal reported that Northwest Airlines and Delta Airlines have spent the last week readying their long-delayed merger announcement with the aim of unveiling it as early as tomorrow, according to people familiar with the matter. Additionally, the article stated that both airlines are prepared to go ahead without support of the 6,000 Delta pilots and without support from Northwest pilots. Once again, this article has failed to recognize or discuss for that matter the largest labor organization on the Northwest property – the International Association of Machinists and Aerospace Workers and the role that we will play in any event of a merged carrier.
For months now, District 143 has clearly expressed our opposition in supporting a merger in an industry saturated with turmoil. Just recently, General Vice-President Robert Roach, Jr., released a statement requesting that airline executives focus on safety, and managing an effective business plan versus merging carriers.
“The merging of any airlines at a time where consumers continue to experience deplorable levels of service due to outsourcing, staffing levels, and antiquated business models would beyond any doubt only cultivate an even more miserable travel experience for the consumer with less choice,” stated President/Directing General Chair Stephen Gordon. “I cannot reiterate enough that the core intent of consolidation is less.”
District 143 along with the Grand Lodge will continue to protect our membership in the event of any proposed merger combination. Once again, we ask that you contact your state and federal legislators and vehemently oppose any merger that would have negative implications towards our job security, our communities, as well as the flying public. “I can assure this membership that this organization will pull out all the stops in defending our livelihoods’ at any cost,” stated PDGC Gordon.
The seemingly once dead merger discussions between Northwest Airlines and Delta Airlines have been resuscitated according to the latest media reports. As many of you are already aware, throughout the past few months both carriers were courting their respective pilot groups in an effort to lobby their support for a merger between the two carriers.
After weeks turned into months, neither group was able to reach an agreement (mostly related to seniority integration) and the much anticipated merger faded from media headlines – until now. Once again, it is apparent that merger talks between the two carriers continue to be ongoing; only this time it appears that the company is willing to proceed without the input of the pilots or any other labor organization for that matter.
District 143 has remained vigilant in our lobbying efforts of state and federal legislators to ensure that our membership is protected in the event of any merger. As previously stated, District 143 will not support any merger that would directly or indirectly allow for the wholesale elimination of our jobs or our communities. Nor will we ever support any merger that solely benefits shareholders or corporate executives.
The Machinists Union has assessed the impact of these potential mergers and determined that any of the combinations 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. We will do whatever is legally possible to protect our member's contracts and their pensions.
Even if two airlines agree to merge, the merger's successful completion is far from guaranteed. The Department of Justice must approve any merger and the Department of Transportation will evaluate any proposal for its impact on the public. A final decision could take more than a year. It took 15 months for the proposed United Airlines-US Airways merger proposal (which the IAM opposed) to unravel and die.
Take the IAM Merger Survey Today!The IAM wants to know what you think about airline mergers. We have prepared a brief survey as one of the ways we hope to better understand how our members at the airlines feel about potential mergers and what expectations you have should a merger at your employer be completed.
It appears at this time that the once imminent merger between NWA and Delta has truly stalled. District 143 has not been officially told anything by Company representatives whether or not it has, but clearly, virtually every media forum has backed away from reporting a deal is expected story.
District 143 will remain active in protecting our membership from any deal that would have adverse effects towards our membership and the communities in which they live. Just like Frank Buchman once said, “There is enough in the world for everyone’s need, but not enough for everyone’s greed.”
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."
Looking At Transportation's Future
The Winpisinger Center was the meeting place this month for the IAM's Transportation Principal Officers Conference.
A 'No Win' Situation
For years the Machinists Union has fought against airline mergers and with good reason. A merger doesn't just hurt employees but also the American public.
It was reported recently in the press that the talks between Delta and Northwest have stalled over the seniority integration of the two pilot groups. We understand that while the top executives of both airlines have already secretly agreed on most of the basics for a merger, it is critical that the two pilot groups come to agreement on combining their seniority lists. For pilots, seniority dictates the size of the aircraft they fly, which in turn dictates their wages, working conditions and career advancement prospects. Some Northwest pilots believe that if there is a merger, the Delta pilots would get a disproportionate amount of the long haul, wide body jet flying once senior Northwest pilots retire in the next five years. This would cause many Northwest pilots to be limited to flying smaller jets with little chance for advancement. According to reports, Delta pilots are also concerned that with the number of Delta pilots that have already retired, many Northwest pilots would be on the seniority list above the many more recently-hired Delta pilots. It has also been reported that there is a recall movement underway to remove four elected representatives of the pilot group at Delta because of the lack of transparency in their negotiations. While the Delta/Northwest deal is stalled, it is too early to pronounce it dead and airline employees are in for a long struggle as this merger mania continues.
Accordingly, this week we announced that the IAM and the Coalition for an Airline Passengers’ Bill of Rights (CAPBOR) have joined forces to block any potential merger that will have an adverse impact on airline employees and the flying public. CAPBOR is the largest and fastest growing non-profit consumer group for airline passengers in the United States. We are coordinating our legislative and legal efforts with CAPBOR and other like-minded groups to save our jobs, our communities, and to protect consumers against the predatory pricing which will surely follow the anticipated attempt to consolidate the airline industry down to three major U.S. carriers. Kate Hanni, founder and Executive Director of CAPBOR described our joint mission this way, “The importance of this alliance cannot be overstated and we look forward to working with the IAM. Airline passengers bear the brunt of poor service. Combining two airlines with two diverse corporate cultures is a recipe for disaster.” We could not agree more.
The inevitable job loss, dislocation, consolidation and closures will have a devastating effect on airline employees, their families and their communities. It is clear from the reports we have seen that the management of Northwest and Delta have made a deal in which Delta will be the surviving carrier with its headquarters in Atlanta, not Minneapolis. It has also become clear that Northwest, the smaller of the two airlines, intends to go forward with the deal if it can get the pilot groups at Delta and Northwest to go along. It has also become apparent why Northwest has refused to engage any of the other employee groups in discussions about their plans. We are firmly convinced that it is because, with the exception of the pilots, they intend to sacrifice Northwest employees to make the merger go with largely and adamantly non-union Delta. Northwest has refused to engage the IAM or any other employee groups in discussions about their plans and we are certain that they have given away our job security to Delta in the process.
We are particularly disappointed in Doug Steenland who, according to the Wall Street Journal, stands to gain the most by leaving the scene after handing Northwest over to Delta. According to the Journal, Northwest’s SEC filings show Steenland, who has led Northwest only since October 2004, can bail from Northwest with a very substantial golden parachute package. He will receive a minimum of $7.8 million if he gives up control to Richard Anderson, the current CEO of Delta. This is on top of the $26 million in stock options he has already received for never making Northwest profitable and taking Northwest in and out of bankruptcy. It was Steenland and his cohorts who forced our members to give up 19% of their hard-earned wages and later 11.5% in wage reductions through the bankruptcy process. Now his combined take will amount to $34 million for himself alone. Thirty-four million dollars could clothe, feed and house a family of four for 680 years at an income of $50,000 annually. Put differently, $34 million could save 680 IAM jobs. We don’t begrudge Mr. Steenland an honest day’s wage for an honest day’s work, but we are not going to let him or anyone else ignore us and conspire to roll over the employees who saved this airline with their sacrifice and who made him rich beyond all reason.
Even Delta’s Richard Anderson, no stranger to multi-million dollar payments and buyout arrangements, recently said that in addition to keeping its headquarters in Atlanta, seniority for Delta employees (meaning his pilots) was an important priority in any merger decision for Delta. Mr. Steenland, to date, has made no such commitment to Northwest employees. He has spent much of his time addressing the Northwest pilot group’s legitimate concerns and aspirations. However, the genuine concern and interest of all other employee groups have been ignored and none, besides the pilots, have been invited to the table. If he thinks we are going to accept on faith that he has the employees’ interests at heart and that we will quietly await our fate, he is sadly mistaken and in for a rude awakening.
The employees and the public have a right to know and Congress will be very interested in exactly how much the few stand to gain and how much the many stand to lose from the elimination of Northwest Airlines through this ill‑conceived transaction.
While discussions regarding a possible merger between Northwest and Delta have slowed substantially, District 143 continues to be prepared to protect the interest of our membership in the event that future discussions unfold. District 143 believes, but cannot substantiate that “behind the scenes” discussions are still ongoing between the NWA and Delta.
District 143 continues to work in unison with the Grand Lodge in preparing our strategy in the event that a merger does come to fruition. Moreover, we continue to maintain open dialogue with local, state, and federal legislators to reiterate our position. In short, just because the speculation of a possible merger has slowed; we have not.
“I find it astonishing that virtually every media forum rarely recognizes any other labor organizations when reporting about the possibility of a merger, especially when the IAM remains as the largest union on the NWA property,” stated President/Directing General Chair Stephen Gordon. “I can assure you that we will be recognized if and when this process moves forward. Just as I have previously stated, we will not idly sit by and allow for the wholesale elimination of our jobs, or our communities.”
District 143 asks that everyone stay engaged in the process; don’t partake in rumors, and support one another throughout. As always, as more information becomes available we will notify the membership.
As many of you are probably already aware, the NWA/DAL merger discussions have stalled from the previous momentum over the past few weeks. Reminiscent of a “Skull & Bones” meeting, Northwest and Delta pilots have not been able to come to an agreement on seniority issues throughout their negotiations.
District 143 remains committed to ensuring that our collective future is secure. We have developed a comprehensive plan that we are fully prepared to execute once a deal is hammered out; a plan that has been shaped and defined by all levels of our organization. Many of you already know that we have been aggressively lobbying Capital Hill as well as state legislators. General chairs have been assigned to mandatory station visits to have face-to-face meetings with the membership to explain the processes involved, and more importantly to discuss what our plan will be, and what the membership role must be.
All transportation districts, in conjunction with the Grand Lodge, have focused on communications regarding airline mergers. District 143 has added a new link to the website titled Merger Watch wherein information regarding mergers is put out to the membership. In addition, you can find various press releases there as well. We encourage the membership to take time from their busy schedules and educate themselves on the numerous issues that we are faced with.
District 143 will continue to take a position of opposition to any airline merger that would have an adverse impact on employees, communities, and the flying public; even while other labor organizations hone their notorious “cut & run” technique. “District 143 remains proactive in ensuring that our membership is protected, that communities are protected, and that the flying public is protected from greedy hedge fund investors who only see us as a liability to their profits,” stated President/Directing General Chair Stephen Gordon. “We will never agree to the wholesale elimination of our jobs or our communities just to satisfy investment firms.”
In the meantime, we ask that the membership continue to educate themselves and their coworkers on the latest information, which can be found on the District web site. Furthermore, we ask that everyone print the applicable communications and distribute. Stay tuned for future updates.
Washington, D.C., February 25, 2008 - 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 chairman of the House Committee on Transportation & Infrastructure says a merged Delta-Northwest or United-Continental would hurt consumers
Mergers in the airline industry are nothing new. Most of the air carriers flying today are the products of one or more mergers over the past three decades or so. Yet this latest round of rumored mergers, which includes a United (UAUA)-Continental (CAL) scenario, as well as a Delta (DAL)-Northwest (NWA) combination, is significant. It would mean further consolidation in the airline industry, further reductions in choice for consumers, and probably fewer flights, fewer jobs, and higher fares...
As we reported in our February 6, 2008 bulletin, there have been ongoing discussions among Delta and Northwest, as well as United and Continental regarding plans to merge. Last Thursday, the Wall Street Journal reported that while talks between Delta and Northwest had momentarily stalled due to a disagreement over whether Northwest’s top management, including Northwest CEO Douglas Steenland, would remain in place after the merger, the issue had been resolved and the talks have resumed, with an announcement expected in a couple of weeks. It has also been reported in the press that pilots at both Delta and Northwest, who are all represented by ALPA, have been negotiating to obtain equity in the combined airline and improved terms in their collective bargaining agreement in exchange for their support of the deal. However, Northwest, to date, has adamantly refused to meet with the IAM to discuss the impact of such a merger on our members claiming it is because we do not represent employees at largely non-union Delta. I have made it clear to Northwest management that if they think that they can freeze this union out of this process and disrespect the members we represent, they are sadly mistaken. You should also be aware that the Northwest/Delta talks have also triggered merger discussions between United Airlines and Continental.
As we have stated before, if an IAM-represented airline merges with an airline whose employees in comparable work groups are not represented, or if the other airline’s employees are represented by another union, the terms of your contract and union representation itself, may be in jeopardy. Furthermore, major mergers that have occurred in the airline industry have often resulted in significant job loss, higher fares and lower levels of customer service. Here it is anticipated that we may well lose the Memphis hub in its entirety and a downsizing of Northwest’s presence in Michigan and Minnesota. History has shown that newly-combined carriers also face substantial operational problems as well as difficulties in the integration of IT systems, equipment, employee benefit plans, routes,management, practices and policies, frequent flyer programs, hubs and facilities, just to name a few.
However, before any airlines may complete a merger, they must first obtain approval from the Department of Transportation (DOT) and the Department of Justice (DOJ). These agencies will conduct an investigation of the proposed merger to determine whether it presents antitrust problems, or in other words, whether the merger will substantially lessen competition, or create a monopoly. Many factors will go into this analysis, and both the DOT and DOJ will gather and review information from both the airlines and other interested parties before making a final decision. If the agencies conclude that the merger will violate antitrust laws, the DOJ may file suit in federal court to block the merger. The Wall Street Journal has reported that Delta and Northwest, as well as United and Continental, are aiming to come to agreements as quickly as possible as the executives of the airlines believe that it will be easier to get DOJ approval while President Bush remains in office.
The IAM and your District Lodge are committed to using all the resources at our disposal to oppose any merger that does not protect the interests of our members. To that end, the IAM Merger Team has spent the past week communicating and meeting with key members of the House of Representatives and the Senate. Representative James L. Oberstar, D-Minn., as well as other members of Congress, have strongly expressed opposition to a merger between Delta and Northwest, and Congressman Oberstar has announced his intention to conduct hearings to review any such proposed transactions. While Congress cannot directly block the mergers, it has important oversight authority. Substantial congressional opposition to a merger in the past has resulted in a decision from the DOJ to block the merger in federal court, as it did in the merger attempt of United and US Airways in 2001, or may result in the airlines abandoning the proposal, as it did in US Airways’ bid for Delta last year.
While no merger has yet been announced, we expect an announcement shortly and are making every preparation for a struggle to protect the jobs of the members we represent. We will continue to update the membership as more information becomes available.
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."
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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.
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.”
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...
As media speculation continues to grow on a looming NWA/DAL merger, District 143 continues to be asked the question of what is the latest news regarding a merger announcement. District 143 continues to be in the dark from NWA when it comes to the progress of discussions.
In a recent inquiry to NWA, District 143 President/Directing General Chair Stephen Gordon stated concerns to the Company as to why the District has not been kept abreast of any news or information within the allowable limits of the law. “It is absolutely despicable to be treated as an insignificant group by the very Company that asked -- in fact, demanded our help in their restructuring efforts. To read about other labor organizations cutting their own deals rather than the Company maintaining open dialogue with the largest union on the property is disingenuous at best,” stated President Gordon. “Our membership did not ratify a concessionary collective bargaining agreement to enable NWA to balance their books, only to shop the carrier around for sale. We ratified agreements to provide for job security, wages, health care, and defined pension plans. Certainly we did not ratify agreements to satisfy Wall Street or for that matter, an absent Board of Directors,” said Gordon.
The reason given for the lack of communication by a Company representative was because not both carriers are union; therefore there really is no need to maintain discussions – bullshit! The number one reason to maintain discussion is about respect – respect of an organization that played an integral part in the successful restructuring of an airline that was forced into bankruptcy because of poor business decisions. I can think of 190,000,000 other reasons as well.
“This membership will not idly sit by and allow their futures to be determined by outside influences who never once sacrificed a single thing in the preservation of this company, yet will be handsomely rewarded for their expensive lip service and their absence in transforming a once bankrupt carrier into a viable airline,” stated President Gordon. “ The bottom line is our members and their families deserve far better.”
The next few weeks will undoubtedly be filled with rumors and speculation from the various media forums. District 143 representatives will be on Capital Hill talking to federal legislators about our concerns during the next few days, and will continue to do so throughout the next few weeks. We continue to strategize our position everyday. Stay tuned – it is starting to get interesting!
Another week of “Merger Mania” has passed and once again District 143 has not been provided with any information regarding the progress of discussions between NWA and Delta Airlines. Just like many of our members, District 143 continues to learn about the progress of discussions through the various media forums.
As the process continues to unfold, District 143 remains committed to educating our membership on the processes – Government Regulatory Approval process – Representational Election – Certification Election, and so on. “We must educate the thousands of good dues-paying members who are unaware of the procedures that must take place in the event that a merger comes to fruition,” stated President Directing General Chair Stephen Gordon.
“We can demand positions of increased wages, better benefits, and virtually anything else that we want; however, the harsh reality is that if we are unable to secure a representational and certification election, our demands are reduced to rhetoric, and those issues become moot; moreover our collective destiny is put in jeopardy,” stated PDGC Gordon. “We will continue being proactive in ensuring that our members are educated on the processes. Clearly, when the time comes, we are most interested in discussing wages, pension, benefits and most importantly, job security.”
District 143 members should be assured that we will oppose any merger that compromises jobs, the pensions or the welfare of our members, just as we did when United Airlines proposed merging with US Airways. We will need the solidarity of the membership if we are to have any success protecting our jobs, our contracts and our pensions. It will come as no surprise if airline executives attempt to manipulate the merger process to reduce or eliminate the presence of union contracts at the combined carrier.
“Clearly we have the ability to control our collective destiny without interference from a bankruptcy judge or outside influences. The decision will be yours; the outcome will be ours,” stated PDGC Gordon.
A NW Merger Info link has been added to our home page to provide easier access to this information as it unfolds.
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 ...
By LIZ FEDOR, Star Tribune
Last update: February 6, 2008 - 7:46 AM
Delta seeks to craft a merger that could win support from employees of both airlines. If the Eagan HQ closes, Delta may still keep a significant presence here...
District 141, 142 and 143 address the latest issues with possible airline mergers.
February 1, 2008 District 143 would like to inform the membership that very little new information regarding merger discussions between NWA and DAL has transpired since our last update. District 143 does know that both carriers continued discussions last week and even this week. As District 143 has stated previously, we have not been privy to the relevance of those discussions between the applicable parties.
“As discussions between Northwest and Delta continue, District 143 will continue to move forward with educating our membership about the processes that are involved related to our organization; regulatory processes of the government, and most importantly the union representational process and certification process,” stated President/Directing General Chair Stephen Gordon. “As you may have read in the media, other labor organizations boldly place demands on wages and benefits. The IAM recognizes that in order for us to get to that point we must prevail in our attempts to be the represented collective bargaining agent first – otherwise those issues become moot.”
During the month of February, all District 143 general chairs have been directed to make station visits to their assigned locations to hold “town hall” meetings with the membership in order to inform them of the latest information about any consolidation between NWA and DAL. It remains essential that the membership understands that we do not have all the answers to questions being raised; however, we are committed to gathering questions so that we can establish a “Frequently Asked Questions” sheet.
“Regardless of what does or does not happen related to a merger, District 143 and the Grand Lodge are more prepared than anyone can imagine, not only for a NWA & DAL merger, but for any possible merger scenario where the IAM maintains a collective bargaining agreement,” stated President Gordon. “As you have heard me say before, I welcome the opportunity for our collective group to finally have a chance to control their destiny; and I remind each and every member that they have an onerous of responsibility not only to our organization, but to each other as brothers and sisters to foster the union advantage.”
As discussions of a merger unfold, District 143 will update the membership. We look forward to seeing everyone at the “town hall” meetings. If you have any questions, please contact your assigned general chair.
On January 21, 2008, President/Directing General Chair Stephen Gordon met with members of Local 141 throughout the day for informational meetings related to “Merger Mania.” “These meetings are about educating our membership on the processes, albeit government regulatory process, representational process, or a certification process; our members must be well informed as to what is at stake for our collective group,” stated President Gordon.
Meetings were also held with members from Local 1833 on January 23, 2008. Both meetings consisted of a Power Point presentation which lasted about fifteen minutes, followed by about one and a half hours of open discussion. “Many of you have stated to me in the past that we do not have control of what happens – starting today brothers and sisters, we have the opportunity to control our collective destiny,” said Gordon.
PDGC Gordon has instructed general chairs to visit each of their assigned locations during the month of February so that every location understands what we will be faced with in the event of a merger. “Education and accurate communication will be the backbone of our success as we navigate our way through all of this,” stated PDGC Gordon. “I would not want to be a part of any other organization as we arrive at this crossroad; the Machinists members have been through this before, and our resolve will get us through this once again.”
District 143 will formulate a Frequently Asked Questions bulletin over the weekend and into early next week from the various questions that we continue to receive. It is imperative that the membership understand that District 143 does not have much more information than most of you at this point. However, we are committed to being proactive in assembling as many answers to the membership’s questions. District 143 will continue to update the membership on a regular basis. If you have any questions, please do not hesitate to contact your local committee or your assigned general chair.
In a letter dated January 16, 2008, General Vice President Robert Roach addressed the IAM's concerns regarding potential mergers with NW's Doug Steenland. A letter was also sent to Delta's CEO Richard Anderson on January 17, 2008.
"We cannot control or predict what other airlines or airline shareholders may do, but doing nothing could be our worst alternative.” These are the words of Mr. Doug Steenland, President/CEO of Northwest Airlines, Inc. as stated in the Star Tribune newspaper on January 11, 2008. Additionally, in the same article Mr. Steenland stated, “The right transaction could be of benefit to our employees, our shareholders and the communities we serve."
"It is imperative for our membership to recognize that the International Association of Machinists and Aerospace Workers have developed a Transportation Merger Team," stated General Vice President Robert Roach, Jr. The Machinists formed the Transportation Merger Team to protect the interests of IAM members affected by airline mergers. Comprised of employee representatives, attorneys, economists and research specialists, our team is prepared for any potential industry consolidation. We are also prepared to evaluate any proposed merger and determine whether it would serve the interests of our members, an airline’s most important asset, and the interests of the flying public. For this to occur we need a transparent process that allows for information sharing. This can be accomplished while respecting the airlines’ need for confidentiality.
Our commitment is self evidenced by General Vice President Roach’s testimony before the Senate Commerce, Science and Transportation Committee on January 24, 2007 titled, “State of the Airline Industry: the Potential Impact of Airline Mergers and Industry Consolidation.”
GVP Roach testified, “The merger of two or more air carriers is not a simple process. There are many aspects to be considered in an airline merger; the integration of routes, consolidation of hubs, blending of aircraft and effects on competition and consumer pricing are but some of the many intricacies of a merger. Perhaps the biggest challenge in any merger is the integration of the workforce so that the newly merged carrier’s employees can work most efficiently under common conditions. Rumors of a merger prompt endless speculations from industry analysts, insiders and casual observers. Mergers, however, don’t fail or succeed on such speculation. Sound business and integration plans are essential if a merger is to be successful.”
GVP Roach went on to state, “What constitutes a successful merger is debatable. In our opinion, a merger should be judged on its impact on employees, communities and passengers. Employees have been devastated in the past as a result of airline mergers. There must be a qualified management team with the requisite skills to facilitate a smooth integration of work groups from the different airlines. Otherwise, a merger could be disastrous. Proposed mergers must further be scrutinized to ensure that employees’ hard earned nest eggs – their pensions – are preserved.”
“The Machinists Union has been involved in nearly every airline merger since 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 airlines themselves. On behalf of the more than 100,000 airline workers who are members of the IAM, I implore you to work with the Machinists and other airline unions to ensure employees are not adversely affected by any airline mergers,” stated General Vice President Robert Roach.
“Our membership, and most importantly, airline executives must recognize that District 143 will not agree to any merger that would jeopardize the social and economic securities of our membership,” stated President/Directing General Chair Stephen Gordon. “While the various media entities report on speculation and rumors, the Machinists Union has been proactively pursuing the job security and pension preservation for thousands of individuals in the event of a merger.”
District 143 cannot emphasize enough that the International Association of Machinists and Aerospace Workers, along with every transportation district within our organization has been, and will continue to be proactive in protecting the interest of our membership for today, tomorrow, and well into the future. As news and rumors unfold, we ask the membership to stay focused and be patient; we are committed to providing you with facts, not rhetoric. As of today, District 143 has not been informed of any discussions with any carrier.
©Copyright 2007 IAM District 143. All rights reserved. The IAM authorizes you to print or download one copy of IAM-copyrighted materials on this web site for your personal, non-commercial use. The IAM further authorizes you to use such materials for purposes of education or organization and to distribute such materials to members of the IAM, other unions, their families, or for other educational or organizational purposes. For other uses, please contact District 143. |
Steenland's Payout After NWA-DAL Merger: $18.3 Million
PDGC Gordon Testifies Before Minnesota House
GVP Roach Appears on Lou Dobbs Radio Show
The House Judiciary Committee's Anti Trust & Competition Taskforce is headed by Rep. John Conyers (D-MI) who opened the proceedings with "We're here today considering airline competition and the proposed merger between Delta and Northwest Airlines." The first panelists questioned were Northwest CEO Doug Steenland and Delta CEO Richard Anderson. Their opening statements were taken right out of their Wall Street Journal Op-Ed piece that ran after the two companies announced their intentions. In a nutshell, they cannot go it alone as stand-alone carriers; that this merger is good for employees, shareholders and the flying public; and that the price of oil has forced them to rethink their business plan again.
A second group of panelists including our own IAM International President Tom Buffenbarger followed. He gave an uplifting yet somber statement reiterating the IAM's stance to oppose various mergers between the six major U.S. airlines. He asked for some form of limited re-regulation of the airlines and said, "The wholesale reshaping of the industry will harm the country and the industry." IP Buffenbarger made the taskforce aware of the $19 million Mr. Steenland will get in the event of a merger, and the untold amount that Mr. Anderson will receive as a part of a new compensation package with the new, larger airline. Mr. Conyers (D-MI) was unaware of any CEO or other management compensation and asked what the unions stood to gain financially. A collective laugh was heard throughout the room. Obviously, the answer is nothing. It is disturbing that many on the taskforce are not familiar with the complexity of past mergers or the deeds of the airlines' management over the past decade where 150,000 jobs and $30 billion have been lost.
