July 16, 2020

Re: Furlough Notices

Dear Brothers and Sisters,

United notified the IBT that the number of furlough notices will be significantly higher than the number of WARN notices sent. The number could be as high as 90% of all of our United members receiving furlough notices. Right now, our legal department is reviewing the situation to determine whether there is a violation of the Act.

In the meantime, there are questions as to how this increase can happen. If you remember during ratification, we explained that we wanted to make the furlough process as difficult as possible on the company in order to deter them from using Article 6. What we are seeing now is the result of that language. As an example, there is one small station closing that has several members with very high seniority. When exercising their options, they could potentially affect hundreds of other members as the bumping ripples through the system. As members bump from Bid Areas and stations or points the ripple effect is magnified further. In other words, it is difficult and costly for the company to furlough you under the provisions of the CBA. It is important to remember, however, that not everyone receiving a furlough notice will be furloughed – it is an indication that they may be furloughed or displaced. Many people receiving furlough notices will not be furloughed or displaced.

Another question is whether the company is violating Article 1 and LOA 18. The company informed us that they will be utilizing the force majeure provisions in both provisions. The force majeure clause reads similarly in both. In LOA 18 it reads: Circumstances beyond the Company’s control shall be: an act of nature; an ongoing labor dispute; grounding or repossession of a substantial number of the Company’s aircraft by a government agency or a court order; loss or destruction of the Company’s aircraft; involuntary reduction in flying operations due either to governmental action(s)/requirement(s) or to a decrease in available fuel supply or other critical materials for the Company’s operation; revocation of the Company’s operating certificate(s); war emergency; a terrorist act, or a substantial delay in the delivery of aircraft scheduled for delivery, provided that one of these listed occurrences has a material and substantial impact on the Company. We have reached out to our attorney for review and he states the company can invoke force majeure language in the current situation.

As more information becomes available it will be shared as quickly as possible.

In Solidarity,

Vinny Graziano
Airline Division Representative
International Brotherhood of Teamsters