Merger Watch

                                              

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Passenger Rights Group Asks For IAM Member Action

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        Merger Watch         Merger Watch    Merger Watch
February 25, 2008      February 26, 2008        March 6, 2008         March 10, 2008


 

 

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.”

 

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."

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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.
 

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.

Read more
 

 

(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 Committee
  Read Roach's Testimony

IAM Journal article from Spring 2007  "A Shake Up in the Wings Read article
 


 


February 13, 2008
To read how the Delta employees feel about the merger click here:
  Delta Ramp Workers Organizing Committee Blog