International Association of Machinists and Aerospace Workers : Local Lodge 2003: Airline CEO Promises Scorned at Senate Hearing

Airline CEO Promises Scorned at Senate Hearing
================================================================================
IAM&AW International on May 08, 2008 04:40pm
 
As he did at a House Judiciary Committee hearing last week, Delta CEO Richard
Anderson pledged that no “front line” employees would lose their jobs as a
result of the proposed NWA-Delta merger that would create the world’s largest
carrier. Anderson specifically said that there would be no cuts among
Northwest’s pilots, flight attendants, cargo or ground workers.
The jobs “pledge” drew hoots of derision and even laughter from the hearing
room, which was packed with airline employees who have heard such promises from
airline executives before.
As if on cue, Anderson’s pledge was followed by a carefully worded warning
from Northwest CEO Doug Steenland, who said that unseen market pressures and the
rising price of oil could influence any commitments regarding jobs. “The only
thing we know is the world we see today,” said Steenland. “In terms of
making commitments, we have to recognize there are variables outside our
control.”
The hearing room came alive as Senators on the committee rolled their eyes and
workers in the audience appeared to choke on the wiggle words they had just
heard.
“I’ve been in this industry for 33 years and I’ve heard a lot of
promises,” declared IAM Transportation GVP Robert Roach, Jr. “The promises
that are made here today will mean nothing tomorrow. It’s time we fix the
industry’s problem instead of short-term fixes that just provide millions of
dollars for the people at the top of these airlines.”
Roach urged committee members to resist appeals to sanction additional airline
consolidation, calling instead for measured re-regulation of fares and capacity
as the only way to ensure safe and reliable air transportation in the United
States.
“This industry is simply unable to turn away from pricing its product below
the cost of providing it, further perpetuating the chaotic spiral that brings us
here today,” said Roach.
The IAM’s complete testimony is available at www.goiam.org/mergers.