A Transportation Security Administration employee awaits travelers at JetBlue JFK terminal in March. ... [+]
A win at United Airlines has labor unions seeking similar gains at Delta and JetBlue.
On Wednesday, hours after the International Association of Machinists filed a lawsuit, United withdrew a plan that would have moved several thousand fleet service workers and passenger service agents from fulltime to part-time and reduced weekly hours to 30 from 40, as the coronavirus crisis leaves most airline seats unfilled.
IAM said the United plan violated the CARES Act, which provided airlines with grants to pay employees through Sept. 30. United was approved for a CARES Act grant of $3.5 billion, while JetBlue was approved for $685 million and Delta for $5.4 billion.
Leaders of three transportation unions – IAM, Transport Workers of America and Association of Flight Attendants — say both JetBlue and Delta have also violated the CARES Act by reducing worker hours.
Not only labor leaders, but also members of Congress and the Senate as well as American Airlines CEO Doug Parker, have said it the act was not intended to enable airlines to both accept grants and reduce employee hours.
“It is deeply troubling that it took thousands of our members appealing to their elected Congressional representative and the filing of a lawsuit yesterday to get United, with whom we worked so hard to help get their billions in CARES Act funding, to finally reconsider its blatantly illegal course of conduct” Sito Pantoja, IAM general vice president for transportation, said Wednesday in a prepared statement.
On Thursday, Pantoja thanked three Senators – Sherrod Brown (D-Ohio), Maria Cantwell (D-Wash.) and Charles Schumer (D-NY)—for writing a letter, at IAM’s request, to Treasury Secretary Steven Mnuchin “urging him to issue guidance clarifying that unilateral decisions to reduce workers' hours, and as a result their pay and benefits, are prohibitive activities under the CARES Act.”
An IAM spokesman added: "If we get the right answer, it would impact Delta and JetBlue as well."
Earlier, Sen. Josh Hawley, (R-Mo.) wrote to United CEO Oscar Munoz, declaring “It was not the intention of Congress that recipients of this taxpayer money would then turn around and disguise pay reductions by cutting hours.”
JetBlue has reduced hours for mechanics and passenger service agents. The carrier “is violating the spirit of the CARES Act,” said John Samuelsen, president of the TWU, which is seeking to organize both groups. In a sense, he said, JetBlue “is doing us a favor.
“The best union organizer is a bad boss,” Samuelsen said.
JetBlue spokesman Philip Stewart said Thursday, “In full compliance with the CARES Act requirements, we have put in place a variety of programs with an emphasis on voluntary time off and unpaid leave programs. However, given the historically low number customers flying right now, there are not as many hours available to work. And with no cash revenue effectively zero and payroll support funding at only 76%, we are trying to fairly allocate those dollars across all crewmembers.”
Stewart said JetBlue is applying the minimum hours in its union agreements for pilots and flight attendants to its non-union workers. Health care benefits and retirement contributions are protected for all employees, he said.
TWU already represents flight JetBlue flight attendants. JetBlue was the first airline to require passengers to wear masks, announcing the new policy on April 27. “We convinced JetBlue to do that,” Samuelsen said. Meanwhile, IAM is seeking to organize JetBlue fleet service workers.
As for Delta, on May 6 AFA President Sara Nelson wrote to the Senate Commerce, Science, Transportation Committee before its hearing on the impact of coronavirus impact on the airline industry.
“A small number of carriers are attempting to flout the (CARES Act) and cheat workers,” Nelson wrote. “Delta Air Lines was the first out of the gate with cuts to hours and worker take home pay. The carrier made the decision to cut ground crew hours by as much as 40% without consulting with workers, and set in motion a vicious and escalating pattern of cuts considered by other airlines. “
Additionally, Nelson said, some Delta flight attendants have asked management to specify a minimum number of monthly working hours, as American and United flight attendants have. “To date Delta management has refused to do so, making clear its plans to slash flight attendant hours and benefits below established industry minimum standards as well,” Nelson said. Both AFA and IAM are seeking to organize Delta flight attendants.
Delta spokesman Morgan Durrant said Delta has compiled with the CARES Act.
“Delta employees continue to be paid at the same rate of pay,” Durrant said. “Under CARES, airlines cannot reduce employee pay rates and benefits between now and September 30, 2020 – and Delta has not done so. We are committed to not furloughing employees or reducing their rates of pay or benefits through September 30, 2020.
“A reduction in pay rates would result in employees working their regular schedules for less money,” he said. “That is not the case here since employees are being paid at the same rate while working fewer hours. That may come in the form of one fewer shift per week or fewer hours throughout the course of a month.” Delta employees remain eligible for health care and other benefits, he said.
