Here are the three letters from UAL regarding the layoffs.
Jim Keenan Email
Hello, this is Jim Keenan, SVP – United Services, with a message for October 17.
We are all well aware of the unprecedented financial pressures and economic uncertainty facing the airline industry. In addition to chronically high fuel prices and reduced consumer spending, financial and credit markets are facing significant challenges. These difficult times impact us all, in both our professional and personal lives.
In response to these challenges, United announced earlier this year that we would reduce our mainline domestic capacity by approximately 16% during the 4th quarter of this year vs. 2007. Consistent with these moves, and designed to ensure United can remain competitive during this turbulent period, we also announced that we would take the difficult but necessary step of reducing our workforce by approximately 7,000 by the end of 2009. Our competitors have announced similar moves, including capacity reductions of 16% at Continental, 13% at Delta, and 12% at American.
Despite this, I want to emphasize that these decisions, at United Airlines overall and within United Services, have not been taken lightly. We must, however, move decisively to respond to current economic challenges. As a result, we began with Salaried and Management (SAM) workforce reductions in July, and with the first round of front line reductions earlier this month. Another significant round of reductions will occur on January 11, 2009.
Because economic and industry conditions continue to be in flux, we are not certain of the precise number of reductions in this next round, but it is significant. The total January reductions will be approximately 750, impacting approximately 510 front line employees in Line Maintenance and 240 front line employees in Base Maintenance. These reductions are consistent with similar actions taking place in other divisions across United.
We are working to minimize the impact of involuntary furloughs. We have offered IBT and IAM represented employees the Early Out and Voluntary Furlough options as in the past. I am happy to say we’ve been able to mitigate many involuntary reductions already for both SAM and front line employees. For the next round, we have enhanced the Voluntary Furlough option with the inclusion of travel benefits. Information about these programs will be available on the United Services home page on SkyNet shortly.
As we rationalize the airline to address this challenging environment, we are also taking measures to enhance the way we do business by running a more efficient airline and maintenance division. This includes rationalizing our Line Maintenance Network and driving efficiency improvements in Base Maintenance. More details on these steps are contained in messages from Tim Canavan, Vice President of Line Maintenance, and the Base Maintenance Leadership Team of Bonnie Turner, Kathy Cassley, Bob Scoble and Bernie Petersen. These follow-on messages will be available on SkyNet later today.
I realize that these are difficult times for all of us. Please join me in making certain that, as we navigate these rough seas, we remain focused on safety and compliance as our foremost priority, and stay committed to delivering excellence in maintenance to United Airlines and our other customers every day. I have no doubt that, working together, we can continue our journey to become the world’s premiere airline MRO.
Jim
Tim Canavan Message
This is Tim with a message for October 17.
By now, you should have received a message from Jim Keenan, SVP – United Services that outlines the challenges United, and consequently United Services, are facing and must respond to. Jim also talks about the reduction in force that will happen at United Services as we right-size the division to match the reduced fleet of the airline. In Line Maintenance, there were many factors considered in evaluating when, where and by how much the reductions would affect the stations. In addition to the fleet pull down, factors including quality, reliability, safety and station efficiency were considered as we allocated these reductions among the stations to create a realistic footprint that can deliver quality and timely maintenance to the airline.
These reductions will occur on January 11, 2009, as aircraft come out of the fleet and more of our reliability initiatives kick in. While many stations will experience reductions, Newark, LaGuardia, Philadelphia stations will no longer provide maintenance service to the airline and Portland will become an overnight station only. We have also announced the closure of the hangars in Boston and JFK. However, because of the growth in international departures and overnight activity at IAD, this station will see a slight growth in resources.
In an effort to mitigate involuntary furloughs as a result of these reductions, we are again offering the Voluntary Furlough and Early Out options for those employees who wish to take advantage of them. Details will be on the United Services home page shortly.
These decisions reflect more than a need to resize the maintenance function. Line Maintenance taking a more strategic approach to ensure that we are doing the right work at the right time at the right locations, which includes partnering with Aircraft Scheduling and Routing to balance United’s need for a flexible route structure with appropriate maintenance opportunities. In doing so, Line Maintenance is creating “Centers of Excellence” where our hubs will ensure that our technicians are trained, qualified, and have the resources to do all work assigned to them. They will be asked to have the most varied technical expertise in troubleshooting and special skills. In addition, certain stations will be asked to champion specific products, such as the 757 A-Check in Seattle and the Airbus A-Check in Denver. We believe this will result in enhanced skills on these aircraft as well as trending potential issues to be worked through our Fleet champions and TST’s. Our Centers of Excellence will provide an infrastructure to work our aircraft safely, strategically, and reliably.
In support of our Centers, the Line Maintenance team will be supporting two important initiatives called “First Time Fix” and “Gate to Gate”. First Time Fix measures involve each technician vigilantly adhering to and improving safety and compliance. “Gate to Gate” measures will match manpower to station needs.
Amidst these changes there is work that continues regardless of our footprint or staffing. The reliability initiatives currently rolling out include an ever increasing number of available work packages and the expansion of our Aircraft Health Monitoring system to the Airbus fleet. Our Work Load and Capacity Planning initiative is well underway to improve our nightly planned packages for the cities. Our focus on cabin condition and workability has also intensified as aircraft appearance remains a priority for United at the highest levels.
I want to stress that these decisions do not reflect on the quality or contribution of the crews at the affected stations. We recognize that through their dedication and commitment there have been many innovations and successes to be proud of. But as the airline not only resizes but reshapes its business model, we must do the same. You are all skilled professionals and United and the entire Line Maintenance team thanks you for the hard work you do every day in helping to safely fly our passengers. I ask that you please demonstrate compassion and respect for all your colleagues as we transition our work through the end of the year and into 2009.
Tim
Base Maintenance Team Email – Bonnie, Kathy, Bob, Bernie
This is Kathy, Bonnie, Bob and Bernie with a message for October 14.
Jim Keenan, SVP – United Services sent an email to all division employees a little while ago outlining the steps United, and United Services, must take to stay competitive in the face of a deepening economic environment, chronically high fuel prices and subsequent reductions in travel demand. While United has committed to reducing the fleet and flying schedule and reducing the workforce by 7000 by the end of 2009, United services will reduce its operations to match the future size of the company, reducing our workforce as well.
At the Base, in addition to the SAM reductions that happened in July, this means approximately 240 union-represented employees will be directly impacted by a reduction that will take effect January 11, 2009. It is important to note that these numbers will change as employees on the line and at the base go through the “shakedown“ process.
As with the previous round, we want to mitigate the impact of these reductions, so we are again offering the Voluntary Furlough and Early Out options for those employees who wish to take advantage of them. In fact, we have chosen to enhance the Voluntary Furlough program with travel benefits. Details will be available on the United Services home page shortly.
There were many factors that led us to conclude this level of employee reduction was necessary: First we analyzed the production volumes we expected to change as a direct result of the 737 pulldown. In Components, the reduction of the 737 volumes and economic challenges were the largest driver to the October reductions in Components hence there will be a minimal impact in the area this round. In Airframe, an effort is underway to become cost competitive, we have been reevaluating the maintenance program, re-scripting the c-checks, and improving part supply as ways to become more efficient. In Engines, volumes for 2009 and 2010 are being analyzed, as well as factoring in efficiencies, improvements to supply chain, and ability to sustain critical qualifications. In Inspection, staffing reductions in other associated organizations reduced work load demand. There is also an impact from the upcoming changes to the receiving of vendor repair articles that will be introduced over the next few months with the help of a new reject data collection tool.
This has been a tough year and we are grateful that you have stayed focused and continued to contribute your best to make our division successful in serving the airline. We will be making the rounds at each shift over the next few weeks to answer your questions as we work through this difficult time.
Kathy, Bonnie, Bob, and Bernie
