jetmatt777 wrote:How are voluntary programs not enough when the entire payroll is covered by grants from Apr - Sep? At that point it doesn't matter if United operates 1 flight a day or 5,000 - the labor cost is being carried by the taxpayers.
Can you tell me where in this it mentions hour will/can not be reduced?
"Pursuant to the PSP Agreement, United and its affiliates will be required to comply with certain provisions of the CARES Act, including, among others, the requirement that all funds provided under the Payroll Support Program will be used by UAL exclusively for the continuation of payment of its employee wages, salaries and benefits; requirements to maintain employment levels through September 30, 2020; provisions prohibiting certain reductions in employee wages, salaries and benefits; provisions prohibiting the payment of dividends and the repurchase of certain equity until September 30, 2021; audit and reporting requirements; provisions to comply with certain continuation of service requirements until March 1, 2022; and provisions restricting the payment of certain executive compensation until March 24, 2022."
It doesn't. It just says jobs won't be lost. Part time has the same benefits and pay scale as full time, so a reduction to part time does not impact one's benefits or wages. I completely expect some shady maneuvering by United, they always have dealt underhanded - you should know this. I hope you are right, but history tells me the opposite with United.
United Airlines is not trying to reduce their union employees pay before October 1st. United has just started the negotiation process with all its unions trying to negotiate an agreement that will go into effect on October 1st. United is not trying to force involuntary pay cuts/reduction in hours on union employees before October 1st. In fact quite the opposite is true United is paying union employees across the system to stay home. Union employes are getting their full 40 hour/week pay check while staying home watching Netflix. United's offer was a starting point to try and keep as many employees on the job as possible. If the IAM rejects that offer (it seems as though they have) then the IAM needs to come back with a reasonable counter proposal and not say they believe the company can achieve the necessary cost saving through expanded voluntary programs because the IAM already knows voluntary programs will not be enough.
Of the 20,000 employees who are already participating in the voluntary programs how many of them are IAM represented employees? Once the CARES act protection is over will United still need 20,000+ IAM represented employees on the payroll if we are only flying 40% of our normal schedule? The IAM is deceiving its membership if they are leading them to believe they will escape this crisis unscathed through voluntary programs. If the IAM does not believe a temporary reduction from full-time to part-time is in their members best interest that is okay. However then the IAM has a duty to prepare their members for the hard truths which will include furloughs and reduction in pay. I wonder how many IAM represented employees know about the "Act of God" clause in their contract? A contract they approved overwhelmingly because of the money. United could enact the clause in all fairness enact because COVID-19 was not United Airlines fault. That clause if enacted carries with it serious repercussions that I'm not sure many IAM members understand. So instead of misleading their membership the IAM should be insisting their membership read the contract in its entirety, and the IAM should be asking its membership for helpful ideas.
In my opinion if there is no agreement by October 1st United may give negotiations an additional 30 days but after that if the situation has not improved I can see United activating the Act of God clause in the IAM's contract.
The only other way I know how to make my point is like this. If there were no CARES act and the airlines were on their own do you believe United would be paying union employees their full salary to stay home or would drastic measures have already been taken? This is what United faces come October 1st when the CARES act runs out. I can promise you this, come October 1st United will NOT be paying union employees to stay home.