Tuesday, August 4, 2020

Airlines Want More Taxpayer Money to Pay Wages, Safeguard Profits.

Striking Airline Workers last year. We're all in this together now?

Richard Mellor
Afscme Local 444, retired

"Brethren we conjure you...not to believe a word of what is being said about your interests and those of your employers being the same. Your interests and theirs are in a nature of things, hostile and irreconcilable.  Then do not look to them for relief...Our salvation must, through the blessing of God, come from ourselves.  It is useless to expect it from those whom our labors enrich."  *

Back in March, US airlines received $25 billion from the US taxpayer under the $2.2 trillion stimulus deal known as the
“Cares Act”. This money was intended to keep the Airlines afloat for the summer by covering their labor costs. They also received, $25 billion in loans and loan guarantees. One of the conditions for the hand out was that the Airlines were barred from laying off, or to use the media’s euphemistic terminology, furloughing employees. This ban ends October 1st 2020.

Well, the airline bosses and their investors are coming back for more money and are disappointed in the Republican proposal for the next coronavirus aid package there’s that there’s no money in it for them. Hence the resort to a dose of economic terrorism. If they don’t get it they will be laying off thousands more workers. American Airlines says it will have to lay off 25,000 workers and United Airlines some 36,000 if the taxpayer won’t pay their wages.
United Airlines told its pilots that until a vaccine is available things will not improve much and the airline’s original plan to layoff about one third of its pilot workforce in 2020 and 2021 won’t do the job without taxpayer money.  Alaska has threatened to layoff 35% of its workforce.

American allocated around $11.9 billion toward buying back its stock over the past five years
and paid out more than $1 billion in dividends during this same time period. Meanwhile, American’s chairman made over $11 million in salary in 2019 and other executives another $20 million. Investors in the airline industry, what amounts to a form of mass transportation on a continent, claim that it will be 2024 before the global air traffic returns to anything like they were before the coronavirus hit.

It’s always interesting to look at the language the unknown figures behind the scenes in this particular field use when making public statements.  All the talk from the airline investors through those that manage the business, never mentions profits. They need help to “prevent” thousands of job losses. They are desperate to “avoid cuts” “We hate taking this step, as we know the impact it has on our hardworking team members.”, says one executive. Some team the workers are on where they never control the ball.


The airlines are hoping that workers will leave through early retirements or as they put it “on their own”. Thousands of workers have left “on their own” at Southwest Airlines for example but one has to laugh at the language again as it implies there was no external pressure, nothing happening in the outside world or the economy that would cause thousands of workers to just leave their jobs “on their own.”

One can only imagine the uncertainty and fear that many workers must be experiencing in this crisis. Beyond this, the huge stimulus will have to be repaid and the future is one of further concessions and attacks on US workers. All the talk of essential workers and heroes is pretty nauseating as these very same workers have been abused and denigrated for ever. Nurses and other professionals in the health field aside, these heroes are in positions we are all encouraged to avoid. They are reserved for the poor, the immigrants and so on.


Airline bosses are hoping that the union leadership will agree to concessions to try to save jobs and there is no indication that they will not. When capitalism goes in to crisis, the labor hierarchy’s immediate response is to bail it out.


Aviation unions representing pilots, flight attendants and mechanics are all supporting an extension of the aid for another six months. In a letter from the unions to Congress in June they called for another $32 million for “passenger airlines cargo carriers and aviation contractors.” “This is the simplest and fastest way to maintain Congress’ historic commitment to keep aviation workers on payroll.”, the letter said.


Sara Nelson, President of the Association of Flight Attendants (AFA) made an appeal on social media in March:   "We have told Congress that any stimulus funds for the aviation industry must come with strict rules that includes requiring employers across aviation to maintain pay and benefits for every worker," Nelson said in the video. "No taxpayer money for CEO bonuses, stock buybacks, or dividends; no breaking contracts through bankruptcy; and no federal funds for airlines that are fighting their workers' efforts to join a union."

Nelson is regarded as a left winger in organized labor but, like all of them is wedded to the Team Concept stressing workers and bosses have the same interests. “We’re all in this together, there is no difference” she says in the video as she appeals to national pride and how important this industry is to all of us carrying our troops and so on. Congress must protect our paychecks she says.


Airline-catering providers, security companies, ground handlers and cleaning services got $3 billion of the Cares Act to cover pay and benefits for workers through the end of September with the same conditions----no layoffs. But numerous contractors that laid off or furloughed some 9,000 people since the Cares Act was passed received some $728 million in funding.
https://www.wsj.com/articles/stimulus-money-for-airline-contractors-comes-under-scrutiny-11596044969

Yes we’re all in this together.

And Sara Nelson is placing our salvation and economic interests in the hands of the billionaires and millionaires in the US Congress. Even if we take the name of the legislation, the “Cares Act”. It has two different meanings. Workers care about wages, jobs, security etc., and investors that own the airline industry care about profits. There have been other top labor officials that liberals and sections of the left in the unions have gone gaga over, Amy Dean was one as was SEIU’s Andy Stern.  Always looking for a savior except the organized power of the working class.

Joining with airline executives and the investors behind them under the “all in this together” canopy is a guarantee that union members and the working class and taxpayers as a whole will suffer. After workers saved US capitalism from itself in 2008 bailing out the auto industry being one example, the end result was that
Ultimately, the government lost about $11.8 billion on its investment in the auto makers.

I have done a fair bit of flying and have nothing but respect and admiration for the flight attendants. They work non-stop taking care of their customers and working through various time zones that can be very stressful. I remember when the airline industry forced concessions of them and attendants, (mostly women) found themselves in some areas, having to apply for welfare. Others who had planned to retire had those dreams dashed.

Not much of an “all together” attitude there. Sarah Nelson who has gained some respect for her outspoken views and sounding quite militant, is in danger of ending up as they all do, participating in the attacks on their own members, by relying on the Democratic Party and Congress, a direct result of the Team Concept and the view that there are no differences.

It is absurd that the taxpayer, the working class which is most of us, are borrowing billions of dollars that we will hand over to a ruthless bunch of wasters so that they can keep the business and pay our wages. After the Great Recession the hatred and anger at the super rich and the government was very strong. Here we are bailing the system out again and the heads of organized labor are reminding us that there are no differences among us; bankers and hedge fund managers, are no different to waiters and welders.


This is the time for any labor leader that claims to be heading in a new direction to call for the nationalization of the airline industry. If we are paying the wages why don’t we collectively own the company?  In the UK, workers have shown that they want the re-nationalization of the major important industries, mail, rail, water and do on. In the US we never hear any alternative views only pro-market propaganda from representatives of the two big business parties and their candidates. In the debates we only hear carefully scripted questions and answers from the two big business parties, I recall Jill Stein getting arrested trying to get in to the debates some years ago.

Our postal service is a public agency and an extremely efficient one if we are talking about serving the majority of the population rather than providing profits for a minority that don’t work. Many fire departments, the TVA, are public so are social services despite being savaged by privatization to a great extent. Public services like public jobs are overwhelmingly positive.


Nationalizing a major industry within the framework of a capitalist economy is not the be all and end all of it, only a small step but an important one as it undermines the propaganda that the market and the private sector is the only means of organizing society. Relying on our own collective strength and applying it through a direct action fight to win strategy, and building our own independent political party is the path the US working class must open up ahead.


*
1840's appeal from New England laborers to their fellows to abandon the idea that the employers/capitalists would solve working people's problems.  Philip Foner History of the Labor Movement Vol. 1 p192

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