Wed, Jan 15, 2003
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."
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