Union Steamed, But Can't Do Math

Although it seems like 'no big deal' to the working folks who don't have any health insurance, the pass-through of health insurance costs to some 1200 Teamsters who work for Allegheny Airlines is hitting the workers where their money isn't -- in their pockets. The union says, "This recently announced act of corporate greed will result in up to $700 a month being taken from workers' paychecks to finance US Airways' bankruptcy reorganization."

"Allegheny's conduct is despicable," said Teamsters General President James P. Hoffa. "US Airways CEO Dave Siegel repeatedly promised that no worker making $30,000 per year or less would be asked to take a pay cut, but here they are trying to cut the wages of fleet and passenger service agents -- almost all of whom make less than $30,000 a year. Siegel has truly shown us how good his word is."

...but the math isn't right...

The union continued, "This drastic increase amounts to a nearly 600 percent hike in worker health care contributions on top of an increase already imposed by the company in October, 2002. The contributions amount to between one-fifth and one-sixth of the gross pay of the worker." [Hold on a minute; do the math: at the 1/5 figure, $700/month means the worker is grossing $3500/month -- that's $42,000 a year. If "...almost all... make less than $30,000 a year," who's making $42,000? (By the way, if the $700/mo is 1/6 of gross, you can revise that to $50,400) --ed.]

Nevertheless, the union points out that, "On December 19, 2002, the company demanded that the workers either accept an ultimatum for wage reductions, benefit reductions and drastic work rule changes or it would impose huge increases in employee contributions. Allegheny did not offer to negotiate over the ultimatum but instead threatened to unilaterally change the employees' working conditions, which would be illegal under the Railway Labor Act."

FMI: www.teamster.org