Tuesday, May 21, 2013

Lies, Big Fat Lies and Really Desperate Lies Uncovered

Lies, Big Fat Lies and Really Desperate Lies Uncovered – An Objective Historical Look at Flight Attendant Pay Rates and a Million Dollar Question Answered.

The IAM campaign has already committed more than its share of lies and spoken more than its share of untruths. IAM campaigners aren’t interested in telling you about the contract they negotiated for the Continental flight attendants – and maybe that’s why they removed that “You Don’t Get What You Deserve – You Get What You Negotiate” tagline from their campaign website shortly after my last blog. Apparently, even the IAM staffers realize that the Continental flight attendants deserve much more than the IAM negotiated for them in their current agreement (e.g. no credits, no rigs, minimum layover rest that can be as low as 7:45 from release to report).

In the most recent backhanded slap to the face of every intelligent, free-thinking flight attendant, the IAM campaign has put out a highly dubious, highly inaccurate comparison of pay scales among flight attendants at major airlines.

Basically, they are cherry-picking the one part of the contract that shows the IAM negotiating skills in a rather mediocre (as opposed to downright bad) light. They are comparing the one part of the Continental contract that they gutted EVERY OTHER part of the contract to save. What the IAM campaign also refuses to be honest about is that they gave away concessions (which they will never get back) without having to. They voluntarily negotiated away contractual protections outside of bankruptcy and then put an inferior contract out for a vote to their membership.

IAM campaigner David Bachman has been posting this “kind of, sort of, could possibly be true, if you jump through three hoops in the correct order on a Tuesday after a blue moon” chart on various public forums, and helping to spread the IAM partial truths and outright lies.

For example, David is misstating the truth when he writes on Facebook: We would negotiate for improvements. Who is going to vote for less?” (Posted on a Facebook public forum.) Well David, the United flight attendants did (twice before bankruptcy and once in bankruptcy), the US Airways flight attendants did (when Pat Friend forced the US Airways MEC to put a concessionary agreement out for a membership vote and then threatened the US Airways flight attendants that if they voted no on the contract, they were doing so with the knowledge that their company would go out of business), and, oh yeah, the Northwest flight attendants did. Not to mention, most recently, the American flight attendants did. But perhaps, most relevant of all: the IAM-represented Continental flight attendants did. And they VOTED FOR LESS OUTSIDE OF BANKRUPTCY.

Here’s another blatant falsehood David publicly spouts to advance his personal agenda: I am tired and tired of working over 100 hrs a month to make what I did 9 yrs ago. I will rotate, spin , swap whatever to get us back to where we were.”(Posted on a Facebook public forum) Nine years ago, David was earning $33.38 per hour. And he was on full-month reserve with no control whatsoever over the trips he flew or whether he even flew at all. Nine years ago, David didn’t have the option of picking up extra trips on his days off to supplement his income, even if he wanted to.

So we have to ask what kind of twisted arithmetic David is using in order to claim that at his current hourly rate of $49.96 per hour, he needs to fly MORE hours to get to the same income that he earned at $33.38 per hour. More importantly, is this an example of someone you want representing you at a negotiations table?

The fact is that David has averaged 73 hours per month over the last several months, so even his claim that he is working over 100 hours per month is a blatant lie. Remember that number. 73 hours. It’s going to come up again later in this blog.

The really puzzling part of the IAM comparison is that both TWU-represented Southwest flight attendants and AFA-represented Alaska flight attendants earn more than the Continental flight attendants in the IAM’s OWN COMPARISON - and with better work rules/credits/rigs and rest. Yet the Delta flight attendants who are now supporting IAM once supported AFA until they got mad at AFA and then supported TWU until they got mad at TWU. We have to wonder if it is only a matter of time before these same organizers get mad at IAM and once again take their marbles and go home. And we have to also, at some point, realize that these IAM campaigners aren’t looking out for the best interests of the Delta flight attendants – they are simply looking for their own personal prize and will jump from union to union to  try to achieve it, regardless of what that union has done for – or against – its own members.

The biggest, baddest lie in the IAM pay comparison is the pay rate that they claim the Continental flight attendants earn. The pay rate that they attribute to Continental is a blended rate that is only in effect for hours flown over 225 in a quarter. So basically, if you fly 75 hours per month or less (or if you fly 150 hours this month and zero hours next month) you WILL NEVER SEE the pay rate in the chart. David Bachman, at his 73 hours per month, will NEVER SEE the pay rate in the chart he is trying to hustle upon the Delta flight attendants.

Rather than a snapshot of one moment in time (that was very blatantly and very obviously cherry-picked), a more accurate measure is a comparison over time. Below is a graph of top of scale pay rates at the legacy carriers from 1990 to present.


Click on Chart to enlarge.

METHODOLGY – The Chart Above:
-       Contains top scale pay rates from 1990 to present.

-       Lists base pay rates for an apples to apples comparison. This does not include items such as blended pay, quarterly overtime, etc.

-       Includes all airlines listed in the American Airlines “Last and Best Final Offer”, which is the only contractual language that exists which defines the peer group (Continental, Delta, United and US Airways) for comparison purposes. No other airline flight attendant contract language currently exists which defines what the peer group is for comparison purposes. The American flight attendants will measure this peer group in three years to make sure that their pay will be brought up to the “Industry Average Comparable Pay Rate” for the fourth year of their contract. For complete text, see Attachment B (page 11) of the PDF here: http://www.apfa.org/images/LBFO/lbfo_19jul12_updated_7_27_12.pdf.
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NOTES
-       The race to the bottom started in 2002, when AFA allowed concessions for US Airways flight attendants: http://www.labornet.org/news/0203/skyway.htm. This started the pressure on other carriers to match US Airways’ reduced labor costs.

-       United was the next airline to extract concessions from its employees. AFA-represented flight attendants gave concessions twice before the company entered bankruptcy and a third time in bankruptcy. (Remember a couple of years ago when the current IAM supporters were trying to sell us AFA as the flight attendant savior? Did they miss the history? Are they missing important history now?) With two major carriers reducing labor costs substantially, the pressure on the remaining legacy carriers increased significantly.

-       At the end of 2004, Continental Airlines management approached employee groups for concessions outside of bankruptcy. The IAM-represented Continental flight attendants eventually agreed to increased productivity in exchange for keeping their hourly rate. They gave away all trip credits and rigs, extended their duty days, eliminated crew meals on domestic flights, and initially were paid half their hourly rate for deadheading. Layover and at-base rest provisions were significantly reduced (to a minimum of 7:45 release to report in some cases). United Airlines management later offered this same agreement to the AFA-represented flight attendants at United. According to United Senior Vice President for Labor Relations, Doug McKeen, “The reason Continental can afford to pay these rates is that Continental currently enjoys significant advantages over United in the areas of work rules and benefit costs.” AFA – United rejected the IAM – Continental contract (http://www.unitedafa.org/news/details.aspx?id=5487) and settled for a top pay rate of $43.73 per hour (they had asked for $64.00) in order to pay to keep their credits, rigs and longer rest provisions.

The big dilemma facing the United and Continental flight attendants in their current protracted contract negotiations is whether they want to maintain the $52.53 that the Continental flight attendants currently earn (with no credits/rigs/crew meals/etc.) or whether they are willing to reduce their hourly rate by $8.00 to buy back some of the credits/rigs/rest provisions that the United flight attendants currently enjoy.

-       In September, 2005 Delta Air Lines and Northwest Airlines each filed for bankruptcy protection. For the first time in history, Northwest flight attendant pay had finally reached parity with Delta flight attendant pay, but the NWA cuts were slightly larger than the Delta cuts, with a much more gradual subsequent rise in pay restoration. As the chart shows, the NWA AFA-negotiated pay rate was flat after emerging from bankruptcy, while the Delta rate increased quickly and significantly.

The Million Dollar Question and David’s Dilemma   

Good financial analysts and investment experts will tell you that the best measure of a company’s performance is to track it over an extended period of time. Taking a snapshot of a moment in time, or even comparing one year’s performance isn’t an accurate indicator of a company’s true long term record. So with that in mind, let’s look at the total earnings for flight attendants at legacy carriers from 1990 through the end of 2013. The chart below shows what a flight attendant at each of the legacy airlines would have earned at the top of the pay scale, flying 75 hours per month for each month since 1990.

Click on Chart to enlarge.

Given the fact that a Delta flight attendant in this scenario would have earned almost $100,000 more than an IAM-Continental flight attendant, we have to wonder what is behind David’s funky math. We know why IAM would try to confuse the facts: millions of dollars in potential dues money, but what does David have to gain by misstating the truth? Why is he so willing to pass around a pay comparison chart that shows an IAM pay rate that David himself will never see at his 73 hours per month average? Why is David trying to represent that he is currently flying 100 hours per month? Why is he so willing to sell out his fellow flight attendants and what does he stand to gain from doing so? And since he very clearly isn’t watching out for the best interests of the Delta flight attendants now, why should we believe that he will do so in any type of honest, transparent, competant manner if we elect him to some type of union position? What exactly is he angling for?

Ask the hard questions and verify before you sign a card that will bring our progress to a stop.

Sign a card: an inferior contract could happen to you too . . . but only after a protracted, angst-ridden, anger-inducing, stagnated period of laboratory conditions.

Sincerely,
Jose Arturo Ibarra