United Slashes Hours For Catering Workers In Newark, Union Says

Eric Kiefer
Updated ·5 min read

NEWARK, NJ — United Airlines has slashed hours for nearly 2,500 of its catering workers by as much as 25 percent, including employees at Newark Liberty International Airport, their labor union said earlier this week.

The “involuntary” cuts took place despite United Airlines getting nearly $5 billion in federal coronavirus recovery funds, according to Unite Here, which represents the affected workers.

The impact of the COVID-19 crisis has ravaged several leading airlines, including United, according to industry advocacy group Airlines For America. As of Wednesday, nearly half of U.S. passenger aircraft are still idled, the group stated.

United Airlines said that its catering workers aren’t the only ones affected; its management and administrative teams are also seeing a reduction in hours. The affected catering workers have maintained their full-time status, and continue to accrue benefits such as sick and vacation time, a spokesperson said.

United is one of several airlines that will benefit from the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides $58 billion in grant and loan assistance for airlines to offset the devastating impact of the COVID-19 pandemic on the industry.

Airlines that receive assistance must comply with conditions for certain periods of time, which include maintaining employment levels as of March 24. Companies getting bailout funds are also prohibited from engaging in stock buybacks.

‘AN INCREDIBLE ECONOMIC HARDSHIP’

According to Unite Here, a 25 percent reduction in hours took effect in late May for United catering workers in Newark, Houston, Denver, Honolulu and Cleveland.

Catering workers at Newark Airport are covered under the Port Authority’s minimum wage – one of the highest in the nation – which stood at $15.60 as of September 2019 and will raise to $19 in 2023.

But some of their peers in other markets make as little as $10.39 per hour, the union said.

“Now they face an incredible economic hardship,” Unite Here stated. “Most will not qualify for unemployment benefits, and yet at only 30 hours per week on already-low wages, workers will not be able to afford their basic necessities.”

According to Unite Here:

“United Airlines received nearly $5 billion in grants and loans from the federal government under the Air Carrier Worker Support provisions of the CARES Act — money intended to prevent airline employees from facing this kind of hardship. In the face of significant backlash and legal challenge, United had announced it would make hours cuts for other airline employees voluntary, but gave catering workers no choice.”

“United must end this cut in hours immediately, and members of Congress must to put workers first in any and all legislation going forward,” International President D. Taylor said. “We’re sick of giant corporations like United getting big handouts, only to game the system and leave workers behind.”

The union’s concerns about United’s use of CARES Act funding were also recently shared by U.S. Rep. Donald Payne Jr., who represents towns in the 10th District including Newark.

In May, Payne reached out to former United Airlines CEO Oscar Munoz, telling the company that he's worried about potential layoffs that could impact thousands of employees at Newark Airport, where the airline has a hub.

“Media reports indicate that United Airlines may cut labor costs by as much as 40 percent in the fall, depending on demand,” Payne wrote. “Hopefully this does not come to pass.”

SURVIVING AN INDUSTRY CRISIS

United Airlines offered a reply to Unite Here’s allegations on Tuesday, claiming that the catering workers aren’t alone when it comes to cutbacks.

According to United:

“As part of our proactive cost-cutting measures across the company to help us survive the worst crisis to ever hit the U.S. aviation industry, several work groups, including catering and those in our management and administrative functions, had changes made to their work schedules. This reduction in hours is in full compliance with the CARES Act. United catering employees have maintained their full-time status and have continued to accrue benefits such as sick and vacation time. To encourage social distancing, we also implemented rotating schedules as well as paid on-call days that did not require our catering employees to physically report to their location of employment.”

“The CARES Act doesn’t specify a minimum number of hours we must make available, and we are continuing to pay the contractually required pay rate,” a United spokesperson told Patch.

“Across the company, [United] introduced voluntary, unpaid leaves of absence programs, voluntary separation programs and, in some cases, voluntary reduced schedules,” he added. “Already, more than 20,000 employees from every work group, including management, have signed up for a voluntary COLA, AUTO/ANP and a voluntary separation program from the company.”

In addition, CEO Scott Kirby and Executive Chair Oscar Munoz have had their base salaries cut by 100 percent through at least June 30, and corporate officers’ base salaries have been cut by 50 percent.

“We’ve also decided to suspend 2020 merit salary increases for all M&A employees, including officers of the company,” the spokesperson said. “Originally, these increases were postponed from April 1 until July 1, 2020.”

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This article originally appeared on the Newark Patch