Dear Brothers and Sisters:
I recently sent you an update on the TWU’s efforts to mitigate the impact of bankruptcy on our membership. We continue to work through every means possible to improve wages, benefits scope and opportunities for our members. In the past week alone we were able to gain an additional quarter of a billion dollars in wages for our members if a merger occurs with US Airways.
I don’t want to sugarcoat this – bankruptcies are ugly. TWU and the other unions representing workers at American Airlines could not stop management from going to court and using the bankruptcy laws against us, the TWU did its best to protect our members, and we came through this process having preserved more jobs than other mechanic groups have at other carriers in bankruptcy.
Raids That Only Help AMR Management and Hurt You
James C. Little, President TWU
In this update, I want to discuss the raid activities of the International Brotherhood of Teamsters (IBT). As with the raid attempt by AMFA (an organization whose multiple fiascos are well known), the IBT has launched an opportunistic attack on the TWU because it knows that our members have been harmed by American Airline’s bankruptcy. In fact, there is no question that the welfare of all of our members has been undermined by poor choices by AMR managements over the last ten years. I understand your frustration, but I think it is important to take a close look at the IBT’s record before lending them your support. The IBT has a record that is less than stellar.
There are four areas I would like to cover regarding the IBT. They include:
– The Outsourcing Record at United and Continental Airlines
– IBT’s Local Structure and Dues
– The Independent Review Board that investigates corruption and looks over your shoulder
– IBT’s Decision to Leave AFL-CIO and Split the U.S. Labor Movement
The Outsourcing Record at United and Continental Airlines
In negotiations with United Airlines in 2011, IBT allowed management to remove remaining limits on the outsourcing of heavy overhaul as well as caps on line-maintenance outsourcing, leaving no caps on outsourcing at all. When the IBT made this concession, United was not in bankruptcy – IBT gave up outsourcing restrictions in normal bargaining. Today, United/Continental Airlines is left with only three heavy overhaul lines at each subsidiary.
Despite the fact that American has used the bankruptcy laws to abrogate the TWU contract and our bargaining rights, we have retained outsourcing caps that keep 65% of our maintenance spending in-house. As a result, even though American has a smaller aircraft fleet than United, our members are working on 31 heavy overhaul lines. Simply said, if the IBT took its Mechanic and Related contract from United and applied it to American, we would lose half or more of the AMT and related jobs in Tulsa, and all AMT and related jobs at TAESL. The bulk of the work we currently do in-house would be shipped overseas to China, Hong Kong, and South Korea.
Due to outsourcing, the IBT also has fewer Title II members at United. At American, TWU currently has 1,600 Title II members or 2.6 Title II workers per aircraft. At United, the IBT has 1,250 Title II members, or only 1.8 Title II workers per aircraft. There is a reason why the TWU has done better than the IBT at protecting Title II work. We have always believed that our union has a responsibility to represent all workers. Even in bankruptcy, we have continued to demonstrate our commitment by negotiating Scope Provisions that protect Title II members.
IBT’s Structure and Impact on AA Locals and Dues Structure
The IBT structure may result in significant changes for AA locals. Most IBT locals are amalgamated, meaning they combine workgroups from many industries. For example, a local may include workers from airlines, Costco, sanitation, and trucking. The IBT has two locals for M&R workgroups at United – Local 781 at ORD, and Local 856/986 at SFO. Overhaul and line station members are combined in these locals, although IBT has considerably fewer overhaul mechanics.
The IBT would increase dues payments for American mechanics. The IBT dues are 2.5 times the member’s hourly base rate with all premiums. The TWU dues rate is 2.0 times the member’s hourly base rate plus line and Crew Chief /Inspection premiums – it does not include license premiums. Approximate dues rates for AMTs for TWU and IBT are as follows:
| Comparison of Dues Payments for AMT with TWU and IBT | ||
| Monthly | Annual | |
| TWU | $57.14 | $685.68 |
| IBT | $83.93 | $1,007.17 |
The Independent Review Board that Investigates Corruption and Looks Over Your Shoulder
According to the IBT’s website1, The Independent Review Board (IRB) was established to investigate and take action with respect to “any allegations of corruption,” “any allegations of domination or control or influence” of any part of the Union by organized crime, and any failure to cooperate fully with the IRB.” The IRB was created as a result of a Federal Consent Decree and operates under rules approved by the United States District Court.
While the IRB has been in place for many years, it has been unable to fully address issues of corruption within the IBT. The IRB continues to look over the shoulder of the IBT, its locals and members. The IBT is the only union — let me emphasize ONLY union in the United States that must clear things with federal overseers. According to a Federal Consent Decree, the IRB has the authority to:
– Examine books and records of the IBT and its locals;
– Take and require sworn statements of any officer, member, or employee of the IBT, provided the Investigations Officer has reasonable cause to take such a statement;
– Retain an independent auditor to perform audits upon the books and records of the IBT or any of its affiliated entities.
The IRB’s most recent actions have been aimed at Local 120 in Minnesota. On November 9, 2012, the IRB issued a 139-page report charging the leadership of IBT Local 120 with corruption and incompetence. This resulted in Local 120 being placed under trusteeship. On December 20, 2012, the IRB called on President Hoffa to bring charges against former Local 120 leaders for embezzling funds, committing acts of racketeering and bank fraud, violating Bylaws and entering into a sham collective bargaining agreement.
The IRB requires that its reports be printed in Teamster Magazine. The most recent report is available in the Fall 2012 edition of Teamster Magazine. This IRB Report can be found here: http://www.twu.org/ibt/ Every issue of the IBT’s magazine has similar reports. Check them out.
IBT’s Decision to Leave AFL-CIO and Split U.S. Labor Movement
In 2005, the IBT was one of several unions to leave the AFL-CIO. That decision is widely viewed as having weakened the U.S. labor movement at a time when unions have been under attack and our economy has been weak. While I strongly believe that dividing the labor movement was the wrong thing to do, it allowed the IBT to stop paying dues to the AFL-CIO, and use that money to hire more organizers to conduct house visits. It also allowed the IBT to evade the AFL-CIO rules that prohibit raiding and the AFL-CIO resolution process for settling raid disputes.
To conclude, since 9/11, we have gone through the most difficult period in our union’s history. Our industry has performed poorly, and management has failed to provide the leadership that we need. Given these circumstances, the TWU has done everything possible to protect your interests. We have done a better job of protecting jobs than any other union, and even in bankruptcy, we negotiated an agreement with an automatic wage adjustment that guarantees that our wages snap-back to industry standard rates.
Before you consider the IBT, I hope you will take a close look at the facts, and ask yourself whether the IBT has been honest with you. In its literature, the IBT has continuously told our members that if they win an election, they will open up our contract and renegotiate better terms. This is simply untrue – the law does not provide for any scenario that would allow the IBT to open and renegotiate our contract before it is amendable. It is also a fact that the IBT’s record in this industry is highly suspect — it has been decertified by workers in virtually every craft or class it has represented.
I ask you to continue to support the TWU as your bargaining representative. I am proud to have you as members and I will do everything in my power to ensure you that you continue to have the best representation in our industry.
Fraternally,
James C. Little