27 Congress Members Tell United Airlines: ‘Don’t Cut 2,500 Jobs’

NEWARK, NJ — United Airlines has gotten billions of dollars from the U.S. government to save jobs and keep workers on the payroll during the coronavirus pandemic. And that’s why a group of federal lawmakers say they’re worried that 2,500 catering jobs at airports around the nation may be on the chopping block.

On Tuesday, 27 Congress members – including several from New Jersey – reached out to United Airlines, asking the company to put the brakes on a possible plan to “outsource” thousands of catering jobs (read the full letters below).

Labor union Unite Here previously said about 1,000 of the affected employees work at Newark Airport. Other affected workers are based in Cleveland, Denver, Houston and Honolulu.

United, the only U.S. carrier that still operates its own kitchens, has said the process is still in the “exploratory” stage and that no decision has been made yet. Read More: Worried Newark Workers Ask United Airlines: Are We Getting Fired?

Throughout the pandemic, the airline has repeatedly said that it's been complying with the conditions of the Payroll Support Program under the federal CARES Act. In addition, United has maintained that its catering workers aren't the only people at the company who have been affected by the pandemic. For most of last year, the company's CEO and president had their base salaries cut by 100 percent, and corporate officers' base salaries were cut by 50 percent.

But that hasn’t quelled the fears of dozens of members of the U.S. Senate and House – or the union members they’re supporting.

Several members of Congress joined a virtual town hall on Tuesday to show solidarity with United catering workers, who shared their own stories about why they’re outraged about the potential layoffs.

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‘THEY’VE SHOWN INCREDIBLE LOYALTY’

The House letter was led by two New Jersey representatives: Donald Payne Jr. of the 10th district, and Albio Sires of the 8th district. It was signed by other New Jersey representatives including Bonnie Watson Coleman (12th district), Mikie Sherrill (11th district) and Bill Pascrell (9th district).

Other signatories include: Jason Crow (D-CO), Kaialiʻi Kahele (D-HI), Ed Case (D-HI), Sheila Jackson Lee (D-TX), Sylvia Garcia (D-TX), Eleanor Holmes Norton (D-DC), Anthony Brown (D-MD), Jamaal Bowman (D-NY), Mark Pocan (D-WI), Jared Huffman (D-CA), Pramila Jayapal (D-WA), Diana DeGette (D-CO), Barbara Lee (D-CA), Ayanna Pressley (D-MA), and Stephen Lynch (D-MA).

The letter reads:

“Given the financial support Congress has shown the airline industry during this pandemic, we were disappointed to learn that United Airlines could outsource more than 2,500 catering jobs in Newark, Cleveland, Denver, Houston and Honolulu. Over the last 20 years, these workers, the majority of whom are minorities, have withstood layoffs, pay cuts and reductions to their hours to help your airline survive the COVID-19 pandemic and other economic struggles including recessions, terrorist attacks, and financial crises. Despite these challenges, they have shown incredible loyalty to your airline. We request you reward that loyalty and show that United Airlines is committed to helping their workers recover from this pandemic.

“United Airlines has received $7.7 billion from the U.S. government in Payroll Support Program grants in order to support its employees and stabilize jobs as the carrier weathers the COVID-19 crisis. The American Rescue Plan included another $15 billion in payroll support grants to the airline industry. Congress created this program to ‘preserve aviation jobs’ by providing wage assistance to companies in exchange for keeping workers on the payroll. Program funds must be used exclusively to pay employee wages, salaries, and benefits. To receive these funds, recipients must ‘refrain from conducting involuntary furloughs or reducing pay rates and benefits.’ Since the purpose of the program is to preserve jobs, we ask that you honor Congress’s intent and commit to retain United’s existing airline catering workers.

“Additionally, United has announced it will spend millions of dollars on stock grants and cash retention bonuses for top executives while it considers layoffs to its blue-collar workforce. United’s stock price has increased more than 35 percent year-to-date and it tripled its pandemic low in March. In addition, United has stated that it expects its profit margin to surpass 2019 levels by 2023. Federal support for the aviation industry was intended to protect U.S. airline jobs during the worst of the COVID-19 pandemic, not be used for stock buybacks and executive bonuses.

“We are strongly opposed to any plan that would outsource thousands of jobs when the industry is already projecting financial recovery. We urge you to adhere to the spirit of the Payroll Support Program, refrain from any job reductions, and publicly state that current United Airlines workers will keep their jobs, pay, benefits, and union representation in your inflight catering operations.”

‘MILLIONS IN STOCK GRANTS, BONUSES’

The other Congressional letter included signatures from New Jersey’s two U.S. senators, Bob Menendez and Cory Booker.

Led by senators Mazie Hirono and Brian Schatz of Hawaii, the letter is also signed by Sherrod Brown (Ohio), Chris Van Hollen (Maryland), and Richard Blumenthal (Connecticut).

The seven U.S. senators also sent a letter to U.S. Treasury Secretary Janet Yellen, requesting that she use her discretionary authority to encourage airlines to end any ongoing efforts that could result in the outsourcing of jobs.

Their letter reads:

“We are writing to ask that United Airlines refrain from outsourcing over 2,500 inflight catering jobs. When Congress passed the Payroll Support Program, it included requirements that airlines choosing to receive funding from the program commit to refrain from layoffs or furloughs of employees. United Airlines has received $7.7 billion from the U.S. Treasury under the first two rounds of the Payroll Support Program, and reports indicate the company is planning to seek funding from the extension of the Payroll Support Program passed by Congress in the American Recovery Plan Act.

“Congress provided support to help the airline industry survive the pandemic. Airline workers deserve a similar level of job security as the economy recovers and travel resumes. Instead, United has announced it plans to outsource inflight catering work, thus far failing to give workers a commitment to maintain their jobs, pay, and benefits. Many of the United Airlines catering workers, who are overwhelmingly people of color, have served the airline for decades. We are also concerned that United’s plans to outsource the catering jobs will jeopardize workers’ continued union representation. We are aware that United Airlines opposed the workers’ effort to join Unite Here in 2018, and that in spite of this opposition 72 percent of the catering workers voted in their election in favor of joining the union. Instead of working towards outsourcing jobs, United should use the time afforded by the Payroll Support Program to engage in good faith negotiations with these employees and their union, who have been working without a contract for over two years and whose work has helped United survive during this challenging period.

“We also note that while other United Airlines workers could lose their jobs after the expiration of the Payroll Support Program, United has announced millions of dollars in stock grants and cash retention bonuses for top executives. United has stated that it expects its profit margin to surpass 2019 levels by 2023. Federal support for the aviation industry was intended to protect U.S. airline jobs during the worst of the COVID-19 pandemic. We are asking you to provide United’s current workers with the job security they deserve during this pandemic.

“Please respond by May 12, 2021, to inform our offices whether you will commit to refrain from outsourcing the catering jobs. If you will not make this commitment, please provide the following information:

• An explanation of why you will not commit to refrain from outsourcing over 2,500 United Airlines catering workers’ jobs in Cleveland, Denver, Honolulu, Houston, and Newark
• An explanation for why you have not made assurances that current United Airlines workers will keep their jobs, pay, benefits, and union representation, should United decide to outsource inflight catering operations
• The city and years of service to United of the employees who could lose their job if United outsources inflight catering operations

“We are communicating with Treasury Secretary Yellen to request that any new Payroll Support Program agreement include commitments from airlines to refrain from outsourcing jobs, and to rescind or refrain from making any commitments to provide executive bonuses while airlines are receiving payments under the PSP.”

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