Machinists Union Demands Answers on Lufthansa Technik Puerto Rico’s Possible Misuse of CARES Act Funds

WASHINGTON, Dec. 15, 2021 – The International Association of Machinists and Aerospace Workers (IAM), the largest airline and transportation union in North America, wrote a letter to the U.S. Transportation Department Inspector General calling for an investigation into possible misuse of CARES Act funds by Lufthansa Technik Puerto Rico, LLC. The IAM wrote the letter on behalf of more than 200 mechanics who work in Aguadilla, Puerto Rico, at Lufthansa Technik Puerto Rico, LLC.

The letter to the Transportation Department Inspector General calls for an investigation into Lufthansa Technik Puerto Rico, LLC’s possible violation of payroll-related commitments that allowed them to receive CARES Act funds or misrepresenting information that allowed them to receive funding. Based on the IAM’s research, it appears Lufthansa Technik Puerto Rico, LLC received millions of dollars in grants while employee wages and hours were improperly cut. The data points to a failure and possible abuse of funds intended to benefit the workers directly.

“The pandemic caused a lot of damage to the growth of the airline industry, and the passage of the CARES Act funding was supposed to be the lifeline for airline mechanics at Lufthansa Technik Puerto Rico, LLC,” said Juan Negron, Special Assistant to the IAM International President. “But instead of hope, they were given pink slips and reduced working hours. The Machinists Union never stopped fighting to ensure this injustice was brought to light. We hope this exposure will give the workers at Lufthansa and their families what they rightfully deserve.”

“The IAM aggressively advocated and won the successful passage of the CARES Act legislation that provided critical relief for airline industry workers during the COVID-19 pandemic,” said IAM Southern Territory General Vice President Rickey Wallace. “As the largest airline union, representing more than 160,000 active and retired members in the airline and rail industries, the IAM is heavily invested in any possible fraud, waste, or misuse of the CARES Act funds.”

Read the entire letter to the U.S. Transportation Department Inspector General Eric J. Soskin

The International Association of Machinists and Aerospace Workers (IAM) is among the largest industrial trade unions in North America and represents nearly 600,000 active and retired members in the manufacturing, aerospace, defense, airline, railroad, transportation, shipbuilding, woodworking, health care, and other industries.

goIAM.org | @MachinistsUnion

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IAM, Union Coalition Support Building Waterway Cutters with Union Labor in Wisconsin

The IAM and three other unions united to support a proposal to construct the U.S. Coast Guard’s (USCG) Waterways Commerce Cutters (WCC) in Superior, WI. The letter, addressed to Homeland Security Secretary Alejandro Mayorkas, highlighted the need for Fraser Shipyards to replace existing cutters in order to expedite commerce on U.S. inland waterways, thereby helping to relieve some of the current congestion and supply backlogs on U.S. waterways.

The IAM, the International Union of Operating Engineers (IUOE), the International Brotherhood of Boilermakers (IBB) and the International Brotherhood of Electrical Workers (IBEW) have joined the effort.

“The workers at Fraser Shipyards are well known for their years of superior service in the maritime industry and excellent customer support,” said IAM International President Robert Martinez Jr. “The IAM, along with our labor allies, are fighting to ensure this highly- skilled workforce can continue to be instrumental in producing quality products for use on the waters of our nation. We are standing together to protect the high labor standards under Davis-Bacon prevailing wage requirements and help provide fairness in the solicitation process.”

Awarding this solicitation to the Upper Midwest-based facility will deliver geographic diversity to the Coast Guard’s procurement processes and, therefore, contribute to national security. Over the last 15 years, most awards have gone to shipyards in a small region of the Gulf Coast.

“Fraser Shipyards utilizes a highly-skilled union workforce, which can accomplish the work productively, safely, and competitively,” reads the joint letter. “Given the key role that the Waterways Commerce Corridor fleet plays in supporting trade and good jobs, it only makes sense to maximize the economic development impact of the program through this solicitation by awarding the construction of the WCC to Fraser Shipyards.”

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Machinists Union Applauds Confirmation of Former IAM Legal Fellow Deirdre Hamilton to the National Mediation Board

The International Association of Machinists and Aerospace Workers (IAM) applauds the U.S. Senate for confirming longtime labor lawyer and former IAM Legal Fellow Deirdre Hamilton to serve on the National Mediation Board (NMB), a three-member panel tasked with handling labor issues in the nation’s railroad and airline industries.

“We thank each senator who voted in favor of confirming Deirdre Hamilton for a seat on this very important federal panel,” said IAM International President Robert Martinez, Jr. “As a seasoned lawyer, and an alum of the Machinists Union, Ms. Hamilton has shown time and time again that she is well qualified for the task of ensuring fairness for workers in our nation’s airline and railroad industries.”

“The confirmation of Deidre Hamilton to the NMB panel is a great step to make sure workers’ rights are protected,” said Richard Johnsen, IAM Chief of Staff to the International President. “Ms. Hamilton is a great advocate for working people, and I am confident she will serve airline and rail workers well.”

“This confirmation is good news for our union members. Ms. Hamilton is greatly qualified for the NMB post, and I am confident she will make sure workers come first,” said TCU-IAM National President Artie Maratea. “As an appointed member of the Dunlop Committee I look forward to working with Deirdre. We need champions like Ms. Hamilton to protect our nation’s workers, and I know with confidence that Ms. Hamilton is up to the task of making the rail industry work for everyone.”

In January, the IAM joined 18 unions representing rail and aviation workers in sending a letter the Biden administration asking for some immediate attention to confirm Hamilton and Puchala.

 

 

 

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Machinists Union Thanks Retiring Chief of Staff Owen Herrnstadt for Historic Career

Owen E. Herrnstadt, IAM Chief of Staff to the International President, will retire from the union, effective January 1, 2022. Herrnstadt will also step down from his role as the IAM’s Director of Trade and Globalization.

In his 34-year career on the IAM’s staff, Herrnstadt has served as an invaluable resource to IAM members, officers, staff and leadership. His work to advance global trade and human rights that benefit working people has been internationally recognized inside and outside of the labor movement.

“On behalf of the IAM Executive Council and our entire membership, I want to extend our deepest gratitude to Owen for all he has given our great union,” said IAM International President Robert Martinez Jr. “Owen has contributed to solving many of the most important issues facing our union for more than three decades. We are a stronger organization because of his work, and his legacy will withstand the test of time as our union moves into the future. I wish Owen and the Herrnstadt family all the very best in this new chapter of their lives.”

Herrnstadt first came to the IAM in 1987, serving as Associate General Counsel. In 1996, he was named IAM Director of Trade and Globalization. In 2014, Herrnstadt became Chief of Staff to the International President. He has served on a variety of federal advisory committees and has written and made presentations on numerous topics including trade, human rights, corporate social responsibility, manufacturing, U.S. and international labor and employment law and other matters.

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It’s Time to Build Back Better – Fighting for a Worker-Centric NDAA – At The Table for Working People

It’s Time to Build Back Better – Fighting for a Worker-Centric NDAA – At The Table for Working People

IAM URGING SENATE TO PASS BUILD BACK BETTER ACT: The IAM is urging members to contact U.S. Senators, telling the federal lawmakers to vote “yes” for the Build Back Better Act. The U.S. House recently passed the pro-worker legislation, which would provide resources and support to help our nation’s hard-working men and women earn better wages and benefits.

Some key benefits for workers:

  • Lowering health care costs.
  • Lowering child care and family care costs.
  • Investing $390 billion for the child care initiative and the universal preschool initiative.
  • Providing $20 billion in workforce development programs.
  • Providing $9.5 billion in public health infrastructure and workforce.
  • Providing $3.5 billion for domestic manufacturing conversion grants to automobile manufacturers and suppliers.

WATCH an IAM video explaining how the Build Back Better Act would help our nation’s workforce.

The IAM has been a strong advocate for passage of the Build Back Better bill, which would build on the bipartisan infrastructure bill that President Joe Biden recently signed into law.

NATIONAL FEDERATION OF FEDERAL EMPLOYEES (NFFE-IAM) APPLAUDS U.S. HOUSE OF REPRESENTATIVES FOR PASSING NDAA: The National Federation of Federal Employees (NFFE-IAM) applauds the U.S. House of Representatives for passing the 2022 National Defense Authorization Act (NDAA) and is actively working with the Senate to ensure the legislation is passed through both chambers of Congress. The NDAA includes significant provisions for federal employees, such as:

  • A pay raise of 2.7% for all feds.
  • Lowering the standard probationary period for civilian workers at the Defense Department from two years to one.
  • Changes to how the DoD handles Reductions in Force.
  • The continuation of the A-76 moratorium.
  • Blocking Base Realignment and Closure authority.
  • Ensuring Wage Grade employees receive the same locality pay Adjustments as General Schedule workers in the same location.
  • Restoring funding to modernize American shipyards.
  • Prohibiting attempts to circumnavigate merit-based hiring and promotions.

MACHINISTS UNION CHAIRS BLACK STATE LEGISLATOR LABOR ROUNDTABLE: IAM National Legislative and Political Director Hasan Solomon recently chaired the Labor Roundtable at the National Black Caucus of State Legislators (NBCSL). The NBCSL Labor and Workforce Development Policy Committee members come together with members from different labor unions to discuss labor and workforce development issues pertinent to union members.

Examples include, but are not limited to, labor/management relations, minimum wage standards, so-called Right-to-Work initiatives, wage equality, employment security, family leave, and child care.

The NBCSL labor delegates concentrated on how to increase their collective voice at the NBCSL and pushing out messaging on vital issues for labor members, including the Build Back Better Act and Bipartisan Infrastructure package.

“We always say if your not at the table, you are on the menu,” said IAM Legislative and Political Director Hasan Solomon. “As chair of the Labor Roundtable, not only do we have a seat at the table – we also participate in setting the legislative agenda for state legislatures across the country. 

MAINE LOBSTERING UNION TAKES FIGHT TO SAVE FISHING WATERS TO SUPREME COURT: The Maine Lobstering Union (MLU) today filed a brief with U.S. Supreme Court Justice Stephen Breyer to end the misguided closure of productive lobstering waters off the coast of Maine.

The MLU previously won injunctive relief from the U.S. District Court for the District of Maine to stop the closure on Oct. 16. A federal appeals court overturned the decision on Nov. 16, closing off about 967 square miles of the Atlantic Ocean to lobster fishing for a third of the year.

WATCH: This is Maine and This is What We Do

“Generations of Mainers have taken pride in sustainably cultivating the world’s best lobster while simultaneously protecting the Right Whales,” said Virginia Olsen of the Maine Lobstering Union. “The decision to close Maine’s waters to this time-honored industry is unfortunately based on misguided and incomplete science. The Maine Lobstering Union looks forward to continuing to fight to save this great American industry and defend the families and communities who rely on it.”

 The Maine Lobstering Union (MLU) is a division of the International Association of Machinists and Aerospace Workers (IAMAW) District 4 and the only union-based cooperative in the lobster industry owned and operated by Maine lobstermen. The MLU supports Maine’s lobster community and is committed to the sustainability and safety of Maine’s lobstermen and women and all wildlife that occupy and rely upon the fishery.

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