Merger Madness
Print Merger MadnessJanuary 17, 2008
To All IAM Members Employed by United Airlines
Dear Sisters and Brothers,
It has been recently reported in the press and on TV newscasts the
“exploratory” merger discussions between United Airlines and Delta
Airlines and Delta and Northwest are about to begin. This is not news to
us at UAL… CEO Glenn Tilton has been beating the drums for over two
years about the need for “consolidation” in the industry and the need
for United “not to be left standing at the altar.” There has also been
speculation in the press about efforts between United and Continental.
One thing is sure… once consolidation begins (no matter the carrier
combination) the rest will try and follow. Time is of the essence now,
because the current White House is viewed as more likely being receptive
to consolidation than maybe the next to move in.
Almost two years ago IAM General Vice President of Transportation Robert
Roach, Jr. established an industry "merger committee" chaired by him and
comprised of fifteen members, including myself and the PDGC's of
Districts 142, 143, lawyers, economists, and research specialists among
others. Its envisioned and stated purpose is to protect the interests of
IAM members in all aspects, not the least of which involves the
continuance of IAM representation, seniority, jobs, economic security,
medical coverage and other benefits including pension
protection/continuance.
As stated by IAM General Vice President Roach, Jr., “The Machinists
Union has been involved in nearly every airline merger since pre and
post 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 airline themselves. As you may recall, this was demonstrated in 2000
when the IAM openly opposed a proposed merger at that time between
United and US Airways over the failure of the carriers to provide
seniority and job security protections for IAM members on both airlines.
I cannot underscore enough that IAM District 141, along with our
International Officers and the other transportation District Lodges 142
& 143 are committed to preserving, protecting and perpetuating the
economic security and well being of our IAM members now and tomorrow. It
is to that end we confidently proceed forward in solidarity to whatever
the future may hold.
General Vice President Roach, Jr. has written a letter to CEO Glenn
Tilton regarding the foregoing and will be published in the next issue
of the District 141 “Messenger.”
As of this date we have not begun any discussions with United management
but we will update you as events dictate moving forward. As my Brothers
from Districts 142 and 143 have suggested to their membership, I would
also urge our members ... please do not listen to rumors or hearsay ...
we will provide you with information and facts ... not rhetoric.
Fraternally and in solidarity,
S.R. (Randy) Canale
President and Directing General Chairman