Tank Commander
Jim "Tank Daddy" Bizzell
- Joined
- Jun 29, 2004
- Posts
- 240
I didn't know he love pilots so much, and that I made so much money.....
STATEMENT OF SENATOR JOHN McCAIN
CHAIRMAN SENATE COMMITTEE ON
COMMERCE, SCIENCE AND TRANSPORTATION
FULL COMMITTEE HEARING
ON THE STATUS OF LABOR ISSUES IN THE AVIATION INDUSTRY
APRIL 25, 2001
We are all aware of the numerous problems facing the aviation industry.
Congestion, delays, and modernization of air traffic control are all issues
that seem to rise to the forefront to be addressed again and again. This
Committee, industry, the regulatory agencies and others have redoubled their
efforts to address these serious problems.
Recently, however, a new problem has risen, creating further havoc in our
system. While labor negotiations in the airline industry have been ongoing
for years, things have begun to worsen. The trend towards larger airlines
has given unions greater leverage which appears to have contributed to a
mind set that views any work stoppage as legitimate. Normally even
acrimonious labor negotiations are a part of the negotiating process with
both sides using what leverage is available to them to reach the best deal.
However, times have changed; these acrimonious negotiations now adversely
affect the American people.
Let me say from the outset that I have no problem with the right to strike.
Strikes are a legal remedy available under applicable labor statutes.
Recently, however, courts have found more and more that labor unions in the
airline industry have engaged in concerted illegal job actions. These
courts have issued temporary restraining orders and injunctions prohibiting
such actions. In recent months, United, American, Northwest, and Delta have
obtained court ordered relief from these alleged illegal job actions. In
American's case, the court fined American's pilots over $45 million for not
adhering to the injunction.
These actions have affected millions of consumers. Middle America has been
stranded time and time again as a result of this illegal union activity.
According to published reports, last year, United cancelled over 23,000
flights as a result of its pilots' refusal to fly overtime, destroying
carefully planned vacations and business trips. Northwest and Delta
cancelled thousands of flights preemptively over the holiday seasons to
combat alleged mechanic slowdowns and failure to fly overtime by pilots,
respectively. The pilots' sickout at American in 1999 left thousands of
people stranded, some of which have banded together to sue the pilots for
damages.
In this day and age, a job action at a major airline can have a catastrophic
effect on the aviation system and the consumer. The rest of the system
would have a difficult time absorbing the excess passengers and the system
could come to a standstill. While management and labor are affected by
this, both parties have contingencies planned in the event of a job action.
The consumer is the one most affected by this increase in labor actions. It
is family flying across country for their vacation, the daughter coming home
from college, and the son going to visit a sick parent who can not reach
their destinations because the unions have taken matters into their own
hands. In the case of pilots, these are people who, according to industry,
on average make $140,000 while working less than 80 hours a month. At the
same time, according to the most recent data in 1999,the average per capita
income was $21,281.
The last two pilot contract negotiations, United and Delta, both of which
had alleged job actions with far reaching effects on the consumer, resulted
in a pay scale where, by the end of the contract, the senior pilots will
make over $280,000 in base pay with the ability to make one-third more for
voluntarily flying 25 more hours a month. Not only should the consumer not
have to suffer as a result of this avarice, but many analysts are concerned
that with labor costs rising so high, airlines will not be able to survive
economically or will at least put themselves in a hole for years to come.
Labor costs for an airline are now projected to be over 33% of its fixed
costs.
Many people argue that management has a choice, but in reality, the choice
is to give in to higher salary demands that a company may not be able to
afford or face a debilitating strike that may cripple the airline and force
it out of business. I don't believe that anyone would argue that is a
choice.
We have convened this hearing to look at these issues. Although this
subject is one that can be very divisive along party lines, I have received
complaints from both sides of the aisle about the current situation. I
welcome the witnesses today and look forward to a lively and spirited
debate.
STATEMENT OF SENATOR JOHN McCAIN
CHAIRMAN SENATE COMMITTEE ON
COMMERCE, SCIENCE AND TRANSPORTATION
FULL COMMITTEE HEARING
ON THE STATUS OF LABOR ISSUES IN THE AVIATION INDUSTRY
APRIL 25, 2001
We are all aware of the numerous problems facing the aviation industry.
Congestion, delays, and modernization of air traffic control are all issues
that seem to rise to the forefront to be addressed again and again. This
Committee, industry, the regulatory agencies and others have redoubled their
efforts to address these serious problems.
Recently, however, a new problem has risen, creating further havoc in our
system. While labor negotiations in the airline industry have been ongoing
for years, things have begun to worsen. The trend towards larger airlines
has given unions greater leverage which appears to have contributed to a
mind set that views any work stoppage as legitimate. Normally even
acrimonious labor negotiations are a part of the negotiating process with
both sides using what leverage is available to them to reach the best deal.
However, times have changed; these acrimonious negotiations now adversely
affect the American people.
Let me say from the outset that I have no problem with the right to strike.
Strikes are a legal remedy available under applicable labor statutes.
Recently, however, courts have found more and more that labor unions in the
airline industry have engaged in concerted illegal job actions. These
courts have issued temporary restraining orders and injunctions prohibiting
such actions. In recent months, United, American, Northwest, and Delta have
obtained court ordered relief from these alleged illegal job actions. In
American's case, the court fined American's pilots over $45 million for not
adhering to the injunction.
These actions have affected millions of consumers. Middle America has been
stranded time and time again as a result of this illegal union activity.
According to published reports, last year, United cancelled over 23,000
flights as a result of its pilots' refusal to fly overtime, destroying
carefully planned vacations and business trips. Northwest and Delta
cancelled thousands of flights preemptively over the holiday seasons to
combat alleged mechanic slowdowns and failure to fly overtime by pilots,
respectively. The pilots' sickout at American in 1999 left thousands of
people stranded, some of which have banded together to sue the pilots for
damages.
In this day and age, a job action at a major airline can have a catastrophic
effect on the aviation system and the consumer. The rest of the system
would have a difficult time absorbing the excess passengers and the system
could come to a standstill. While management and labor are affected by
this, both parties have contingencies planned in the event of a job action.
The consumer is the one most affected by this increase in labor actions. It
is family flying across country for their vacation, the daughter coming home
from college, and the son going to visit a sick parent who can not reach
their destinations because the unions have taken matters into their own
hands. In the case of pilots, these are people who, according to industry,
on average make $140,000 while working less than 80 hours a month. At the
same time, according to the most recent data in 1999,the average per capita
income was $21,281.
The last two pilot contract negotiations, United and Delta, both of which
had alleged job actions with far reaching effects on the consumer, resulted
in a pay scale where, by the end of the contract, the senior pilots will
make over $280,000 in base pay with the ability to make one-third more for
voluntarily flying 25 more hours a month. Not only should the consumer not
have to suffer as a result of this avarice, but many analysts are concerned
that with labor costs rising so high, airlines will not be able to survive
economically or will at least put themselves in a hole for years to come.
Labor costs for an airline are now projected to be over 33% of its fixed
costs.
Many people argue that management has a choice, but in reality, the choice
is to give in to higher salary demands that a company may not be able to
afford or face a debilitating strike that may cripple the airline and force
it out of business. I don't believe that anyone would argue that is a
choice.
We have convened this hearing to look at these issues. Although this
subject is one that can be very divisive along party lines, I have received
complaints from both sides of the aisle about the current situation. I
welcome the witnesses today and look forward to a lively and spirited
debate.
