BODY: STATEMENT BY EDWARD WYTKIND,
EXECUTIVE DIRECTOR TRANSPORTATION TRADES DEPARTMENT, AFL-CIO
SENATE COMMERCE, SCIENCE, AND TRANSPORTATION COMMITTEE
October 2, 2002
My name is Edward Wytkind. I
am the Executive Director of the Transportation Trades Department, AFL-CIO
(TTD). I am pleased to appear before you on behalf of the 35 affiliates
including the member unions of our Aviation Coordinating Committee.1 Mr.
Chairman and members of the committee; thank you for allowing us the opportunity
to share our views on the state of America's airline industry.
While I know you will hear a great deal about the many economic and
policy issues that are contributing to this industry's severely depressed state,
I would like to offer the perspective of transportation labor and specifically
the hundreds of thousands of men and women employed in the aviation industry who
form the backbone of air transportation in this country. America watched with
disbelief and horror as the events of September 11 played out before our eyes.
For the dedicated workers in this industry, the
attacks were especially horrendous - for the first time in America's aviation
history a domestic air carrier, our members' workplace, was used to carry out an
act of terrorism in the United States. As you know, 33 pilots and cabin crew
members died on-board the aircraft used as weapons of destruction. Several
hundred more union members, from firefighters and police whose courageous acts
still inspire us, to those who simply went to work that day, perished as
well.
Obviously, in the days, weeks and months that
followed, the nation's airline workers - our members - knew that air travel in
America would never be the same. We recognized immediately that security would
take on significantly greater importance and that business as usual was going to
change. And indeed, immediately after September 11 our members were the first to
bear the brunt of the economic consequences of this horrendous act of terror. A
year later, this industry has not rebounded and tens of thousands of airline
employees are either laid-off or face the uncertain future of downsized and
possibly bankrupt airlines. In addition, unless Congress extends unemployment
benefits before it adjourns, these laid-off employees will exhaust their
benefits and will face a future with no hope of receiving even the most basic
government assistance.
State of Economy and Aviation
Industry
At the outset, let me state that no one cares
more about the safety and the economic health of the aviation industry than the
employees whose livelihoods depend on strong airlines. We agree that something
must be done to stabilize this vital sector of our economy. We cannot lose sight
of a simple fact: for airline workers and their families, the survival of this
industry means the ability to pay the mortgage, send the kids to college and
protect retirement security. In this slumping economy, when a worker gets a pink
slip, the economic security that he or she fought so hard to obtain can
disappear without warning and with little recourse. And for the millions of
Americans who rely on air service, we must stop this industry's financial
tailspin and do everything we can to ensure their safety and security.
As we evaluate the state of the airline industry, we must
also look to the continuing weakness of the overall U.S. economy. There are
currently more than 8 million Americans out of work, with 2.8 million workers
being jobless for 15 weeks or more. Nearly 430,000 workers ran out of
unemployment benefits in July - an increase of 67 percent over last year.
Unemployed workers today have the dubious distinction of making the Top 10 list
of "worst months" of unemployment insurance exhaustion since the Department of
Labor began tracking this data three decades ago. There is still no sign of
turnaround in the manufacturing sector - including aircraft producers such as
Boeing - where almost 1 million workers have lost their jobs in the last
year.
This desperate situation facing working families
is what inspires the labor movement to demand action by Congress and the
President to extend unemployment benefits and to provide assistance to the
millions of men and women who face a future with little hope of obtaining
long-term employment and with the very real prospect of losing health care
insurance. It seems to us that the greatest economic power in the world should
be able to find the political will and the resources to stop the hemorrhage in
our economy and protect the livelihoods of so many Americans who are
suffering.
With that backdrop, one of the hardest hit
segments of the economy is the airline industry. We have all seen the data and
it paints a bleak picture for airlines, their workers, air travelers and the
economy. According to the Air Transport Association, airline industry losses in
2001 were $7.7 billion. Projected losses in 2002 may again exceed $7 billion and
in 2003 the situation may improve slightly, but in the process service and jobs
will be slashed, aircraft purchases will be deferred and canceled, and travelers
will pay the price with diminished choice, lost frequency and a lower quality of
service.
The forecast will surely worsen however if, as
it appears likely, we go to war with Iraq. A hike in fuel prices alone will have
an immediate and devastating impact. Aviation industry workers, including
employees of airlines, Boeing and aerospace suppliers, and airports, have
suffered unprecedented job loss and economic uncertainty. Some 100,000 airline
employees are out of work or facing imminent lay-off. Another 30,000 Boeing
workers are laid- off along with 51,000 additional aerospace employees. But it
is the multiplier effect of airline lay-offs that is most startling. Airline
industry data show a combined workforce exceeding 600,000.
However, the total workforce, if related job sectors such as airports,
aircraft manufacturing and suppliers are included, totals 10.9 million. In other
words, one airline worker translates into 18 additional jobs in our economy. And
with bankruptcies looming large, it is easy to conclude that the staggering job
losses will only grow.
Proposed "Fixes"
Unfortunately, at a time when this industry needs to collaborate with
its employees to reverse this severe financial downturn, it appears some want to
direct attention at "scapegoat" issues that attach blame for these problems to
airline employees and their collective bargaining rights. As we have
demonstrated time and again, aviation labor is dedicated to preserving the
future of this industry but will oppose those who would have Congress believe
that the latest financial crisis can be "solved" on the backs of airline
workers.
As Congress and this Committee responded to
the economic crisis facing the industry last fall, it enacted a package of
economic assistance, supported by TTD, that included $5 billion in direct
assistance and $10 billion in federal loan guarantees. While the legislation
failed to provide relief to jobless airline and other industry workers as we had
insisted, the bill did create a framework that was expected to give air carriers
the chance to recover from the staggering losses associated with 9/11.
Unfortunately, the loan guarantee program, administered by the newly created Air
Transportation Stabilization Board (ATSB), has not lived up to the expectations
of Congress.
The fact is that nothing in the emergency
relief legislation was intended to saddle applicants with such onerous
requirements that would actually deter air carriers from taking advantage of
this important assistance. Moreover, it was not the intent of Congress to allow
the ATSB to exercise such broad powers to directly intervene in the collective
bargaining process in carrying out its responsibilities.
To this day, one applicant, America West, has secured a loan guarantee.
American Trans Air (ATA) last week received conditional approval for a $150
million loan guarantee. And USAirways' attempts to seek a loan package met with
such resistance from the ATSB that the airline eventually filed for bankruptcy
protection. What is clear is that these applicants and many others were
subjected to a bureaucratic and unwieldy process as well as grossly unrealistic
demands for employee wage concessions that did not reflect the will nor the
intent of Congress. A bipartisan Congress moved quickly to shore up a vital
industry and its workforce and clearly intended to build a bridge from 9/11 to a
day when the industry's financial fortunes would stabilize. That underlying
principle has hardly defined the ATSB's work to date in processing applications
for federal assistance. Mr. Chairman, I would like to submit for the record a
policy resolution that was adopted yesterday by our Executive Committee which
calls on Congress to curb the ATSB's overreach into the collective bargaining
process, to expedite the loan guarantee process and to extend the arbitrary
deadline for submitting applications to the Board.2
There are some policy proposals that should be debated. The major
airlines have offered a number of legislative solutions intended to relieve them
of what they term as "excessive" federal fees and costs. It is certainly
understandable why the industry's attempts to gain additional economic relief
from the government have drawn criticism from some in Congress, especially since
we continue to witness air carrier inspired legislative attacks on the rights of
airline workers. Our members have grown accustomed to the airlines' tactic of
"blaming someone else" when economic trouble strikes.
Nevertheless, although the dedicated employees of this industry are
weary of these tactics, Congress should consider the industry's economic relief
proposals in the context of finding ways to stabilize the deteriorating finances
of airlines and halt the alarming rate of lay-offs and furloughs. Overall, our
government must come to grips with the fact that airline security is a national
responsibility and has become an important element of our national defense and
homeland security. We agree with the contention that certain costs, such as the
deployment of new security technologies and the staggering price for "war risk" insurance, cannot be financed entirely by the airline
industry and its employees.
Furthermore, a war with
Iraq could have consequences from which the industry, in its current fiscal
state, may not recover. The fact is that aviation security has become one of
America's top homeland security objectives. Congress will, of course, have to
ensure that whatever temporary or long-term relief is afforded to the airlines
does not come at the expense of funding needed for our air traffic control
system and airports.
Executive Committee, "The Aviation
Industry and the War on Terrorism." The airline industry is far too important to
our economy and our national security to allow the current fiscal tailspin to
continue. With the war on terrorism growing in size and intensity, the
importance of U.S. airlines - and its workforce - will grow as well. We are
urging Congress and the President to insulate the airlines, their employees and
passengers from paying the astronomical price for national security
responsibilities that should be part of our national defense and homeland
security. Clearly, this industry is being saddled with expenses related to the
war on terrorism, which is a federal responsibility.
These costs are unsustainable unless Congress funds them through the
national security and defense mechanisms, not as expenses imposed on the
airlines.
Transportation labor will work with the
carriers to urge Congress to take action before it adjourns but we cannot push
for a package of airline assistance related to the war on terrorism if it fails
to include relief for jobless aviation industry workers.
Relief for Workers
Even as Congress and the
President consider providing additional assistance to the airlines, we remain
committed to securing federal assistance for the skyrocketing number of laid-off
workers.3 One of our most bitter disappointments is the inaction of our
government to help the thousands of aviation industry workers who, through no
fault of their own, lost their jobs following the 9/11 attacks. Last fall, we
mobilized behind Senator Carnahan and her worker relief bill to provide extended
unemployment benefits, training and retraining assistance and a health care
safety net for laid off airline industry workers. Although the bill was killed
by Republicans who waged a filibuster, airline workers and their families owe a
debt of gratitude to Senator Carnahan for her dedication, hard work and
unwavering support to this day. Senator Carnahan, transportation labor intends
to continue this fight with you. We will not again allow hollow promises to put
off what is the right thing to do for airline workers.
We propose a four point plan that would provide laid off airline
industry workers with (1) 26 weeks of extended unemployment compensation, (2) a
75 percent federal subsidy for health care coverage, (3) training and retraining
assistance, and (4) hiring preference for laid off airline workers to fill the
thousands of remaining federal security positions at the TSA.
The same rationale that led Congress to enact emergency legislation
providing $15 billion in relief for air carriers should have inspired lawmakers
to do the right thing for workers who endured economic hardship of unprecedented
proportions. This is especially disturbing since it appears that the turnaround
we had hoped for will not materialize anytime soon and at the same time laid-off
workers are bracing for pending bankruptcy reform legislation that would force
them to carry their debts for the rest of their lives.
We will not rest in our effort to convince Congress to pass an
extension in unemployment insurance and to finally address the fact that too
many Americans face a future without health insurance. To this day, our members
wonder why Congress and the President failed to address the desperate needs of
airline workers in their darkest days - as the labor movement had advocated when
the airline bail-out bill was pending last fall - and why now Congress appears
poised to leave for the fall elections without finishing the job. Let it be
stated today that thousands of airline and other workers will exhaust their
jobless benefits and will lose their health insurance in the months between
congressional adjournment and when the 108th Congress convenes.
Security and Confidence in Air Travel
For
airline workers nothing is more important than the security and safety of the
air transportation system - their workplace. For current employees and future
generations of workers in this industry, the September 11 attacks will serve as
a painful reminder of the many unexpected dangers they face on the job. Both
during and following these brutal attacks, airline workers, air traffic
controllers and other government employees such as FAA technicians and
inspectors demonstrated their commitment, courage and skill. I urge you to
consider the contributions of employees, especially the thousands of workers who
reported to work just a few days after 9/11 - when the nationwide ground stop
was lifted by our government, and to this day staff the front lines of this
nation's dedicated aviation workforce. I also urge you to ensure that our
government and the air carriers listen to the workers in this industry who can
offer hands-on experience in developing and implementing aviation security
measures. That was not the case in the weeks following 9/11, as a number of
proposals, including those geared towards addressing passenger and cargo
security risks in the nation's airports, were developed without the input of
airline employees.
These issues are especially
important because until we answer the typical weary air traveler's questions
about the safety and security of air transportation, the economic state of this
industry will continue to erode. Airline workers know all too well that for our
industry and our nation to rebound and thrive, we must restore faith in the
safety and ease of air transportation in America. In other words, we must not
allow other issues to distract us from our mission: to bring the American
traveler back to the safest airline industry in the world and to demonstrate our
resolve to never again allow acts of terror to be carried out in our air
transportation system.
Congress has a large
responsibility to play as well. We will continue to push for more resources to
ensure the proper deployment of security measures and will join the airlines and
the airports in calling on you to fund more of the extraordinary costs
associated with meeting the nation's airline security needs.
We will not, however, support the unwarranted roll-back of aviation
security requirements simply because of costs; indeed, we will join in making
the case for more federal resources, but we cannot support actions that will
ultimately contribute to air travelers' already shaken confidence. Worker
training is especially important in these times, as training under existing
practices and federal mandates is not and never was geared towards situations
such as the 9/11 attacks. We are pleased to see progress in this area but much
more can be done that will contribute greatly to the preparedness of our
aviation workforce and, by extension, to the security of air travel. We also
hope this Committee will urge the TSA to act promptly on the credentialing of
airline and airport employees and to develop and implement a new security
screening process for these employees.
We must also
assert our strongly held view that aviation security and workers' rights are
compatible and not conflicting propositions. Federal workers' rights to
collectively bargain and whistleblower protections have unfortunately become one
of the core subjects of disagreement in pending legislation to create a new
cabinet level Department of Homeland Security. This unfair assault on workers'
rights is especially disturbing to transportation labor as no one questioned the
important role in our homeland defense that air traffic controllers and other
FAA employees - essential members of our federal workforce - played in carrying
out orders to land almost 5,000 planes in about two hours without serious
incident or mishap. Their dedication and commitment to defending the security of
America was never questioned and we urge Congress to move on with Homeland
Security legislation, leaving the collective bargaining rights of the new
agency's employees intact.
Completion of this important
legislation will contribute a great deal to making Americans feel safer and more
secure about flying.
Looking Ahead
Unfortunately, the future of the aviation industry is uncertain at
best. There is no uncertainty, however, about the importance of air
transportation to America. In the weeks and months ahead we will advocate for
policies that reverse the shaken confidence of air travelers. We will insist on
ample federal resources to cover the cost of security. We will join the debate
over the fees and taxes paid by the airlines and consider what costs are
intrinsically linked with defending America's homeland security and thus should
be borne by our government. We will defend the collective bargaining rights of
aviation employees and oppose industry attempts to vilify our members who
struggle to manage through these difficult times. We will urge you to ensure
that all the benefits of the emergency relief legislation enacted last fall are
realized. And we will continue to push Congress and the President to further
extend unemployment benefit for laid-off workers and to consider the millions of
American workers who face the loss of health care coverage in this reeling
economy.
The labor movement is dedicated to stabilizing
the finances of the nation's airlines and securing our airways for the nation's
air travelers and our members. This industry is extremely crucial to our
economy, to every community in America and to millions of working men and
women.
We look forward to working with this committee
and thank you for allowing us the opportunity to share our views.
