[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
OVERSIGHT OF WORKING CONDITIONS FOR AIRLINE GROUND WORKERS
=======================================================================
(116-49)
HEARING
BEFORE THE
SUBCOMMITTEE ON
AVIATION
OF THE
COMMITTEE ON
TRANSPORTATION AND INFRASTRUCTURE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION
__________
JANUARY 15, 2020
__________
Printed for the use of the
Committee on Transportation and Infrastructure
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available online at: https://www.govinfo.gov/committee/house-
transportation?path=/browsecommittee/chamber/house/committee/
transportation
______
U.S. GOVERNMENT PUBLISHING OFFICE
42-244 PDF WASHINGTON : 2020
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
PETER A. DeFAZIO, Oregon, Chair
SAM GRAVES, Missouri ELEANOR HOLMES NORTON,
DON YOUNG, Alaska District of Columbia
ERIC A. ``RICK'' CRAWFORD, Arkansas EDDIE BERNICE JOHNSON, Texas
BOB GIBBS, Ohio RICK LARSEN, Washington
DANIEL WEBSTER, Florida GRACE F. NAPOLITANO, California
THOMAS MASSIE, Kentucky DANIEL LIPINSKI, Illinois
MARK MEADOWS, North Carolina STEVE COHEN, Tennessee
SCOTT PERRY, Pennsylvania ALBIO SIRES, New Jersey
RODNEY DAVIS, Illinois JOHN GARAMENDI, California
ROB WOODALL, Georgia HENRY C. ``HANK'' JOHNSON, Jr.,
JOHN KATKO, New York Georgia
BRIAN BABIN, Texas ANDRE CARSON, Indiana
GARRET GRAVES, Louisiana DINA TITUS, Nevada
DAVID ROUZER, North Carolina SEAN PATRICK MALONEY, New York
MIKE BOST, Illinois JARED HUFFMAN, California
RANDY K. WEBER, Sr., Texas JULIA BROWNLEY, California
DOUG LaMALFA, California FREDERICA S. WILSON, Florida
BRUCE WESTERMAN, Arkansas DONALD M. PAYNE, Jr., New Jersey
LLOYD SMUCKER, Pennsylvania ALAN S. LOWENTHAL, California
PAUL MITCHELL, Michigan MARK DeSAULNIER, California
BRIAN J. MAST, Florida STACEY E. PLASKETT, Virgin Islands
MIKE GALLAGHER, Wisconsin STEPHEN F. LYNCH, Massachusetts
GARY J. PALMER, Alabama SALUD O. CARBAJAL, California,
BRIAN K. FITZPATRICK, Pennsylvania Vice Chair
JENNIFFER GONZALEZ-COLON, ANTHONY G. BROWN, Maryland
Puerto Rico ADRIANO ESPAILLAT, New York
TROY BALDERSON, Ohio TOM MALINOWSKI, New Jersey
ROSS SPANO, Florida GREG STANTON, Arizona
PETE STAUBER, Minnesota DEBBIE MUCARSEL-POWELL, Florida
CAROL D. MILLER, West Virginia LIZZIE FLETCHER, Texas
GREG PENCE, Indiana COLIN Z. ALLRED, Texas
SHARICE DAVIDS, Kansas
ABBY FINKENAUER, Iowa
JESUS G. ``CHUY'' GARCIA, Illinois
ANTONIO DELGADO, New York
CHRIS PAPPAS, New Hampshire
ANGIE CRAIG, Minnesota
HARLEY ROUDA, California
CONOR LAMB, Pennsylvania
Subcommittee on Aviation
RICK LARSEN, Washington, Chair
GARRET GRAVES, Louisiana ANDRE CARSON, Indiana
DON YOUNG, Alaska STACEY E. PLASKETT, Virgin Islands
DANIEL WEBSTER, Florida STEPHEN F. LYNCH, Massachusetts
THOMAS MASSIE, Kentucky ELEANOR HOLMES NORTON,
SCOTT PERRY, Pennsylvania District of Columbia
ROB WOODALL, Georgia DANIEL LIPINSKI, Illinois
JOHN KATKO, New York STEVE COHEN, Tennessee
DAVID ROUZER, North Carolina HENRY C. ``HANK'' JOHNSON, Jr.,
LLOYD SMUCKER, Pennsylvania Georgia
PAUL MITCHELL, Michigan DINA TITUS, Nevada
BRIAN J. MAST, Florida JULIA BROWNLEY, California
MIKE GALLAGHER, Wisconsin ANTHONY G. BROWN, Maryland
BRIAN K. FITZPATRICK, Pennsylvania GREG STANTON, Arizona
TROY BALDERSON, Ohio COLIN Z. ALLRED, Texas
ROSS SPANO, Florida JESUS G. ``CHUY'' GARCIA, Illinois
PETE STAUBER, Minnesota EDDIE BERNICE JOHNSON, Texas
SAM GRAVES, Missouri (Ex Officio) SEAN PATRICK MALONEY, New York
DONALD M. PAYNE, Jr., New Jersey
SHARICE DAVIDS, Kansas, Vice Chair
ANGIE CRAIG, Minnesota
GRACE F. NAPOLITANO, California
SALUD O. CARBAJAL, California
PETER A. DeFAZIO, Oregon (Ex
Officio)
CONTENTS
Page
Summary of Subject Matter........................................ vii
STATEMENTS OF MEMBERS OF THE COMMITTEE
Hon. Rick Larsen, a Representative in Congress from the State of
Washington, and Chairman, Subcommittee on Aviation:
Opening statement............................................ 1
Prepared statement........................................... 3
Hon. Garret Graves, a Representative in Congress from the State
of Louisiana, and Ranking Member, Subcommittee on Aviation:
Opening statement............................................ 4
Prepared statement........................................... 5
Hon. Peter A. DeFazio, a Representative in Congress from the
State of Oregon, and Chairman, Committee on Transportation and
Infrastructure:
Opening statement............................................ 5
Prepared statement........................................... 6
Hon. Frederica S. Wilson, a Representative in Congress from the
State of Florida, opening statement............................ 8
Hon. Debbie Mucarsel-Powell, a Representative in Congress from
the State of Florida, opening statement........................ 9
WITNESSES
Hon. Eileen Higgins, Commissioner, Miami-Dade County:
Oral statement............................................... 10
Prepared statement........................................... 11
Donielle Prophete, Vice President, Communications Workers of
America Local 3645:
Oral statement............................................... 13
Prepared statement........................................... 15
Esteban Barrios, Ramp Worker, Miami International Airport,
testifying on behalf of Service Employees International Union
Local 32BJ:
Oral statement............................................... 20
Prepared statement........................................... 21
Marlene Patrick-Cooper, President, UNITE HERE Local 23:
Oral statement............................................... 26
Prepared statement........................................... 28
Brian Callaci, Ph.D., Postdoctoral Scholar and Labor Economist:
Oral statement............................................... 33
Prepared statement........................................... 35
Chris Harrison, on behalf of Airlines for America:
Oral statement............................................... 36
Prepared statement........................................... 38
Russell Brown, Chief Executive Officer, RWP Labor:
Oral statement............................................... 40
Prepared statement........................................... 42
SUBMISSIONS FOR THE RECORD
Article, ``Twelve Arrested at Reagan Airport in Worker Protest,
Union Official Says,'' by Martin Weil, Washington Post,
November 27, 2019, Submitted for the Record by Hon. Eleanor
Holmes Norton.................................................. 66
Letter of January 24, 2020, from Hearing Witness Brian Callaci,
Ph.D., Postdoctoral Scholar and Labor Economist, Submitted for
the Record by Hon. Rick Larsen................................. 73
APPENDIX
Question from Hon. Salud O. Carbajal to Esteban Barrios, Ramp
Worker, Miami International Airport, testifying on behalf of
Service Employees International Union Local 32BJ............... 77
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January 13, 2020
SUMMARY OF SUBJECT MATTER
TO: LMembers, Subcommittee on Aviation
FROM: LSubcommittee staff
RE: LSubcommittee hearing on Oversight of Working
Conditions for Airline Ground Workers
_______________________________________________________________________
PURPOSE
The Subcommittee on Aviation will meet on Wednesday,
January 15, 2020, at 10:00 a.m. in 2167 Rayburn House Office
Building to hold a hearing titled, Oversight of Working
Conditions for Airline Ground Workers. The hearing will explore
compensation and occupational safety and health issues for
workers who load baggage, prepare meals, clean cabins, and
perform other ground-based functions important to the
operations of U.S. airlines.
BACKGROUND
On the night of August 11, 2019, 24-year-old Kendrick
Hudson was driving a tug on the tarmac at the Charlotte-Douglas
International Airport in Charlotte, N.C., when he swerved to
avoid a stray suitcase in his path.\1\ The tug overturned, and
Mr. Hudson, an employee of American Airlines' regional
subsidiary Piedmont Airlines, was pinned underneath.\2\ He died
of his injuries.\3\
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\1\ Hannah Smoot, Charlotte airport worker killed in baggage
vehicle accident identified, Charlotte Observer (Aug. 12, 2019),
https://www.charlotteobserver.com/news/local/article233780512.html.
\2\ Id.
\3\ Id.
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Mr. Hudson's union, the Communications Workers of America
(CWA), says his death was preventable and part of a pattern of
workplace injuries, some of them fatal, among airline ground
workers. CWA Local 3645 vice president Donielle Prophete, who
will testify at the Subcommittee's hearing, told a reporter
that Piedmont employees call a zone of the tarmac between gates
E30 and E38 at Charlotte ``Death Valley'' because of poor
lighting and visibility at night.\4\ And Mr. Hudson's death
came at a time when employees of contractors for mainline
carriers like American, Delta, and United had begun to raise
concerns over their safety and health in the workplace as well
as low wages and poor working conditions. This hearing will
explore those issues.
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\4\ Lauren Lindstrom and Hannah Smoot, `Accident waiting to
happen': After death, airport workers want safety improvements,
Charlotte Observer (Sept. 24, 2019), https://www.charlotteobserver.com/
news/local/article235417587.html.
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I. OUTSOURCING GENERALLY
Mainline air carriers such as American, Delta, and United
outsource a substantial amount of their operations to regional
carriers like Mr. Hudson's employer, Piedmont. Regional
airlines operated 41 percent of all scheduled passenger flights
in 2017, according to the regional airlines' trade
association.\5\ Some regional airlines are wholly owned
subsidiaries of mainline carriers while others are independent
airlines that operate flights on behalf of several different
mainline carriers. Regional airlines serve not just small
communities but also trunk routes: regional carriers
ExpressJet, Republic, Envoy, and SkyWest operate outsourced
flights on behalf of American and United between Washington
National Airport and Chicago O'Hare, for example.\6\
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\5\ Regional Airline Association: Who We Are, https://www.raa.org/
who-we-are/.
\6\ See, e.g., FlightAware, IFR Route Analyzer, at https://
flightaware.com/analysis/route.rvt?origin=KDCA&destination=KORD.
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Unions representing or seeking to represent airport ground
workers allege that the mainline carriers' pattern of
outsourcing flight operations extends to the outsourcing of
ground services, such as baggage handling and cabin cleaning,
that are intrinsic to airline operations. The mainline carriers
often contract for these services with a combination of other
firms. For example, Delta and United have formed subsidiaries--
Delta Global Services and United Ground Express--to provide
ground-handling functions for those two carriers as well as
others at many airports.\7\ Airlines also contract with
numerous firms such as Eulen America for ground-handling and
LSG SkyChefs and Gate Gourmet for catering. And in some cases,
the mainline carriers contract with their regional airline
partners, such as SkyWest, to provide ground-handling services
(for example, regional carrier SkyWest reported revenue of $44
million from ground-handling services provided to other
airlines in 2017).\8\
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\7\ See, e.g., Delta Global Services: About Us, https://
www.dalgs.com/about/; United Ground Express, at http://
unitedgroundexpress.com/.
\8\ See, e.g., SkyWest, Inc., Annual Report (Form 10-K) (Feb. 21,
2019), at 53.
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Airlines do not individually break out the amounts spent on
outsourced ground services by category, but mandatory filings
with the Bureau of Transportation Statistics (BTS), part of the
U.S. Department of Transportation, contain total amounts that
airlines spend on ``services.'' According to their BTS filings,
the three largest mainline carriers--American, Delta, and
United--spent a combined $16.6 billion in 2018 on ``services,''
which include ground support functions.\9\
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\9\ Dep't of Transp. Bureau of Transp. Stats., Form 41, Schedule P-
6 (2018).
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II. LOW PAY
There is no dedicated repository for information on ground
workers' pay. However, Dr. Brian Callaci, a labor economist
commissioned by Communication Workers of America (CWA) who will
testify at the hearing, has analyzed Bureau of Labor Statistics
data to conclude that the proportion of airlines' outsourced
services has increased by 57 percent since 2001.\10\ At the
same time, while direct airline employees' wages have increased
on a net basis since 2001, contract workers' wages have
decreased by 12 percent over the same period, according to Dr.
Callaci's research.\11\
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\10\ Brian Callaci, Fissuring in Flight: Consolidation and
Outsourcing in the US Domestic Airline Industry, 1997-2018, at 7 (Jan.
7, 2020), available at https://cwa-union.org/sites/default/files/
20200108-fissuring-in-flight.pdf.
\11\ Id.
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Preston Strickland, who works in an LSG SkyChefs kitchen
preparing cold entrees for loading aboard airliners, told the
New York Times last year that he spends his shift in an area
where the temperature is 40 degrees or below yet makes
approximately $11 per hour after more than four years with the
company.\12\ He told the Times reporter that ``[h]e recently
spent several months homeless because he didn't have money for
rent.'' \13\
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\12\ Noam Scheiber, 11,000 People Who Prepare Your Airline Food Are
Considering a Strike, N.Y. Times (June 4, 2019), https://
www.nytimes.com/2019/06/04/business/economy/airport-workers-union.html.
\13\ Id.
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A recent survey of 900 agents of Envoy Air, one of American
Airlines' regional subsidiaries that operates nationwide as
American Eagle, revealed that 27 percent of the respondents
said they rely on public assistance and are forced to take
measures such as selling blood plasma and borrowing against
retirement accounts to make ends meet.\14\ Similarly, an
investigation by the Miami CBS affiliate in April 2019 found
that Envoy pays ground workers at Miami a starting wage of
$9.48 an hour and that often their workweek is limited to 30
hours or less, providing an annual salary of $15,000 to
$18,000.\15\ An Envoy worker was quoted in the story as saying
that his coworkers ``are on public assistance,'' that some
``sleep in their cars in the employee parking lot,'' and that
employees have organized ``an underground food pantry bank.''
\16\ Similarly, the Miami Herald reported in 2018 on the
situation of an employee of catering contractor LSG SkyChefs,
who said she made $11.10 per hour: ``not enough to cover the
cost of the company's insurance plan'' and not enough for her
``to care for herself and her six-year-old grandson.'' \17\
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\14\ Hugo Martin, American Airlines subsidiary workers say they
must take food stamps, sell blood to get by, L.A. Times (Feb. 23,
2018), https://www.latimes.com/business/la-fi-travel-briefcase-airline-
wages-20180223-story.html.
\15\ Jim DeFede, MIA's Forgotten Workers: Low Wages, Poor Treatment
for Many at Miami International Airport, CBS Miami (Apr. 19, 2019),
https://miami.cbslocal.com/2019/04/21/mia-forgotten-workers-low-wages-
poor-treatment-miami-international-airport/.
\16\ Id.
\17\ Taylor Dolven, Miami approved MIA workers' living wage. So why
are many still making below minimum?, Miami Herald (Dec. 5, 2018),
https://www.miamiherald.com/news/business/tourism-cruises/
article222612650.html.
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Furthermore, while the Miami-Dade County Municipal Code
mandates a $12.63-per-hour living wage with a corresponding
health care benefit or a $15.52 hourly minimum wage with no
health benefits (with indexation to inflation), airlines and
certain other businesses are exempt from the ordinance.\18\ In
the fall of 2018, American ``moved hundreds of [wheelchair]
attendants to its own subsidiary, Envoy, which is exempt from
the living-wage law.'' \19\ A worker who said she previously
worked for Eulen on behalf of American Airlines and was
transferred from Eulen to American subsidiary Envoy told the
Miami Herald that ``she went from making $16.15 per hour to
making $9.50 per hour'' pursuant to the transfer because she
lost her coverage under the living-wage ordinance.\20\
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\18\ Miami-Dade County, Fla., Municipal Code 2-8-9; see Douglas
Hanks, This Miami airport worker puts in 17-hour days at two jobs. He
might get a raise., Miami Herald (July 24, 2018), https://
www.miamiherald.com/news/local/community/miami-dade/
article215448780.html.
\19\ Taylor Dolven, Miami approved MIA workers' living wage. So why
are many still making below minimum?, Miami Herald (Dec. 5, 2018),
https://www.miamiherald.com/news/business/tourism-cruises/
article222612650.html.
\20\ Id.
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The chart below describes typical wage ranges for many
ground workers, reported by their unions.
------------------------------------------------------------------------
Represented Employees' Typical wage
Union employees employers ranges
------------------------------------------------------------------------
CWA 11,845 ramp and American $10.75 to $16.25
passenger service Airlines per hour
workers subsidiaries
Piedmont and
Envoy
Service Employees 32,535 contract Numerous airline Nearly half earn
International airport workers, contractors, less than $15
Union (SEIU) including baggage including ABM, per hour; cabin
handlers, cabin Delta Global cleaners earn
cleaners, cargo Services, $10.73 per hour
workers, customer Swissport, on average
service Menzies
representatives, Aviation,
lavatory and Prospect Airport
water agents, Services, G2
ramp agents, Secure Staff,
ticket agents, Eulen, Worldwide
and wheelchair Flight Services,
attendants, among Primeflight
others Aviation
Services, and
Dnata
Unite Here 15,000 airline United Airlines, More than half
catering workers Gate Gourmet, earn less than
and LSG Sk$15 per hour
------------------------------------------------------------------------
Data provided by CWA, SEIU, and Unite Here.\21\
There\\ are some examples of localities attempting to
ensure that their airport workers are paid a living wage. For
example, workers stationed at San Francisco International
Airport (SFO) are paid a minimum of $17.66 an hour, above the
State's $12 hourly minimum as well as the $15.59 minimum in the
city of San Francisco. Additionally, under SFO's Quality
Standards Program, some SFO workers, including baggage
handlers, cabin cleaners, and other workers with access to
secure areas, are paid $18.16 an hour.\22\
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\21\ Data provided to Democratic Committee staff via e-mail.
\22\ Mallory Moench, SFO is booming. But workers there are
struggling, San Francisco Chronicle (Nov. 25, 2019), https://
www.sfchronicle.com/business/article/SFO-is-booming-But-workers-there-
are-struggling-14859523.php.
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III. WORKER SAFETY AND HEALTH
Cesar Valenzuela, a 51-year-old father of four, died on
February 12, 2014, at the Los Angeles International Airport
when he was thrown from the tractor he was driving across the
tarmac. He was found pinned beneath one of the tractor's
tires.\23\ Accidents happen, and fatal injuries occur in many
lines of work, but a subsequent investigation found that Mr.
Valenzuela died because the tractor he was driving was not even
equipped with a seatbelt.\24\ His employer, Menzies Aviation,
was reportedly fined $77,250 by the California Occupational
Safety and Health Administration.\25\
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\23\ Bart Jansen, Congested airport ramps risky before and after
flights, USA Today (Dec. 17, 2014), https://www.usatoday.com/story/
news/nation/2014/12/17/airport-ramp-safety-airlines-iata-faa-osha-ntsb/
18597565/.
\24\ Id.
\25\ Id.
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Ground workers at other locations around the country relate
similar stories of faulty equipment and harsh working
conditions that jeopardize not only their safety and heath but
also the safety and health of airline passengers. The Miami CBS
affiliate's investigators spoke with an employee of Eulen
America, which provides ground services for American and Delta
in Miami, who said that when cleaning cabins between flights,
``[y]ou can find blankets with blood, people puke in the
blankets, you can find Pampers on the floor.'' Yet the worker
said his supervisor ``told him not to waste time cleaning too
thoroughly.'' \26\ Another cabin cleaner said cockroaches
infested Eulen vans that transport cabin cleaning crews and
supplies to the aircraft--supplies such as blankets that are
placed in passenger seats.\27\
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\26\ Jim DeFede, MIA's Forgotten Workers: Low Wages, Poor Treatment
For Many At Miami International Airport, CBS Local (Apr. 21, 2019),
https://miami.cbslocal.com/2019/04/21/mia-forgotten-workers-low-wages-
poor-treatment-miami-international-airport/.
\27\ Id.
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Esteban Barrios, a Eulen employee who will testify at the
hearing on behalf of SEIU, told the Miami CBS affiliate that
``[s]ometimes I feel that they [Eulen] think we are machines
and not human.'' \28\ Mr. Barrios performs services on behalf
of Delta Air Lines at Miami. Ms. Higgins, the Miami-Dade County
commissioner who will also testify at the hearing, told
reporters she was ``subjected to intimidating behavior during
an airport tour'' of Eulen's operation.\29\ More recently, an
Occupational Safety and Health Administration (OSHA)
investigation in 2019 confirmed many findings of the CBS
investigation of conditions faced by Eulen employees.\30\ OSHA
cited Eulen with nearly $80,000 in fines (later reduced to
about $47,000), related to violations including:
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\28\ Id.
\29\ Id.
\30\ See OSHA, Citation and Notification of Penalty, Inspection
#1403303, available at https://miami.cbslocal.com/wp-content/uploads/
sites/15909786/2019/11/OSHA-Miami-Citations-copy.pdf.
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LExposure of employees to blood-borne pathogens
when handling hypodermic needles and cleaning up blood on
planes. Citations indicate that the company failed to provide
training on how to safely handle cleanups or offer hepatitis B
vaccinations to at-risk workers.\31\
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\31\ Alexi C. Cardona, OSHA Says Miami International Airport
Contractor Jeopardized Worker Safety, Miami New Times (Nov. 26, 2019),
https://www.miaminewtimes.com/news/miami-international-airport-
contractor-eulen-cited-by-osha-for-safety-violations-11321975.
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LExposure to excessive heat that was ``causing or
likely to cause death or serious physical harm to employees.''
\32\
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\32\ Id.
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LExposure to dangerous noise levels. Citations
indicated that Eulen did nothing to safeguard ramp workers from
hearing loss, including extended exposure for more than six
hours in one day.\33\
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\33\ Id.
These issues are by no means unique to Miami. To be sure,
airport tarmacs everywhere can be dangerous places: The
Government Accountability Office (GAO) reported in 2019 that an
estimated 27,000 ramp accidents and incidents occur
worldwide.\34\ OSHA has certain authority over airline ramp
workers' occupational safety and health,\35\ but OSHA generally
investigates ramp accidents only when they involve fatalities
or the hospitalization of three or more workers.\36\
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\34\ Gov't Accountability Office, Aviation Safety: Opportunities
Exist for FAA to Improve Airport Terminal Area Safety Efforts, at 13,
GAO-19-639 (Aug. 2019), https://www.gao.gov/assets/710/701116.pdf.
\35\ See 29 U.S.C. 651, et seq.
\36\ Gov't Accountability Office, Aviation Safety: Enhanced
Oversight and Improved Availability of Risk-Based Data Could Further
Improve Safety, at 7 n.13, GAO-12-24 (Oct. 2011), at https://
www.gao.gov/assets/590/585613.pdf.
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Below are select cases in which workers died or faced
significant injuries that are at least partially attributable
to the failure of their employers--whether it be contractor or
airline--to maintain a safe workplace.
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Airport Employer Description
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Los Angeles International Airport (LAX)....................... Menzies Aviation (SEIU) In 2014, a bag handler was thrown from a tow tractor and
pinned beneath its tires after rushing to pick up airline
baggage. His employer, Menzies Aviation, was fined
$77,000 by the California OSHA for safety lapses,
including not having a seatbelt on vehicle, and for
inaccurately reporting the death as a heart attack.\37\
San Francisco International Airport (SFO)..................... US Airways In 2012, a worker suffered a broken leg after falling 10
feet from a jet bridge onto the tarmac. After the
incident, SFO made numerous safety changes, including
establishing a team that holds monthly safety meetings,
leads trainings in ramp driving, and issues citations and
fines for violations.\38\
LaGuardia Airport (LGA)....................................... Air Serv In 2012, a cabin cleaner was struck and killed by a water
truck. Despite multiple requests to his supervisor to be
reassigned due to safety concerns, his requests were
ignored. OSHA fined his employer, Air Serv, $7,000 for a
``serious violation'' that the company failed to keep the
work site ``free from recognized hazards.'' To date, his
family has not received any compensation.\39\
Charlotte Douglas International Airport (CLT)................. Piedmont Airlines In 2019, a baggage worker was killed after his tug
vehicle rolled over after hitting luggage. Workers cite
poor lighting as contributing to the accident. In
response, airport officials have expanded the scope of an
existing airport lighting analysis at the request of
American Airlines.\40\
Seattle-Tacoma International Airport (SEA).................... Evergreen Aviation Ground In 2015, a bag handler was awarded $10 million (which was
Logupheld in 2018) after the brakes failed in the vehicle he
was driving and the vehicle crashed into a broken cargo
loader, causing injuries that left him paralyzed. The
airport was found liable for injuries arising from
worksite safety breaches.\41\
Seattle-Tacoma International Airport (SEA).................... Alaska Airlines/Menzies In 2016, the Washington Department of Labor & Industries
Aviation fined Alaska Airlines and Menzies Aviation for health and
safety violations, including failing to ensure powered
industrial trucks were in safe working condition.
According to the investigation, Alaska Airlines failed to
``provide safety devices, safeguards, work practices,
processes, and the means to make the workplace safe from
hazards that were causing, or likely to cause, serious
physical harm to Menzies ramp agent employees who handle
cargo and passenger baggage for Alaska Airlines at Sea-
Tac Airport,'' and was fined $62,000 for 16 violations of
state worker and health and safety laws.\42\
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\\ \\ \\ \\ \\ \\
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\37\ Dan Weikel, Cal/OSHA Fines Aviation Company in Death of LAX
Baggage Worker, L.A. Times (Aug. 20, 2014), https://www.latimes.com/
local/lanow/la-me-ln-baggage-handler-death-20140820-story.html.
\38\ Bart Jansen, Congested airport ramps risky before and after
flights, USA Today (Dec. 17, 2014) https://www.usatoday.com/story/news/
nation/2014/12/17/airport-ramp-safety-airlines-iata-faa-osha-ntsb/
18597565/.
\39\ Ginger Adams Otis and Rich Schapiro, Airport Worker Killed on
the Job, Three Children Left with Nothing: Family, N.Y. Daily News
(Jan. 25, 2014), https://www.nydailynews.com/new-york/airport-worker-
killed-job-children-left-family-article-1.1591586.
\40\ Lauren Lindstrom and Hannah Smoot, Charlotte Airport Workers
Want Safety Improvements after August Death, Charlotte Observer (Sept.
24, 2019), https://www.journalnow.com/business/charlotte-airport-
workers-want-safety-improvements-after-august-death/
article_5ab62dc2-2bb4-5f98-968e-e6c15757c33a.html.
\41\ Chandra Lye, Port of Seattle Not Required to Pay Entire $40M
Verdict to Worker Injured During Wreck of Luggage Vehicle, Legal
Newsline (July 24, 2018).
\42\ Steve Wilhelm, Alaska Airlines, Baggage-Handler Menzies Fined
by Labor Regulators, Puget Sound Bus. J. (Mar. 8, 2016).
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Airport Employer Description
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Seattle-Tacoma International Airport (SEA).................... Alaska Airlines In 2005, a baggage cart bumped into an Alaska Airlines MD-
83 prior to take-off. At 26,000 feet with 142 people
aboard, the cabin depressurized due to a 12-inch-by-six-
inch hole in the fuselage later found by investigators.
Fortunately, the pilots were able to land the aircraft
without any injuries.\43\
Atlanta-Hartsfield Airport (ATL).............................. Delta Airlines In 2010, a baggage tug vehicle driver died after being
ejected from his vehicle and was not wearing a seatbelt.
Delta said in a memo to employees that many of its
vehicles currently do not have seat belts, and that it
averages 14 ejections per year, with half resulting in
``serious employee injury.'' In 2010, two Delta employees
died in different incidents after being ejected from
baggage tugs. In the subsequent OSHA settlement, OSHA
cited Delta for violating Federal regulations that
requires employers to provide employees with personal
protective equipment, which in this case means seatbelts.
In the settlement, Delta agreed to pay an $8,500 penalty
and install seat belts in vehicles that do not have them,
train employees to use the seat belts, enforce the
requirement, and report results of a monitoring program
back to OSHA.\44\
--------------------------------------------------------------------------------------------------------------------------------------------------------
In\\ a recent\\ CWA survey of 800 employees of Envoy Air,
respondents reported troubling rates of ``chronic understaffing
and time pressure, inadequate support for high flight volumes,
and safety concerns on the runway and at the gate.'' \45\
Specifically, nearly 8 in 10 participants reported feeling
rushed to complete their job during all or most shifts, and
nearly half of agents working on the ramp reported being unable
to complete required aircraft inspections.\46\ Finally, 58
percent of agents who conduct cabin searches for contraband and
other risks before flights report not having enough time to
complete the search.\47\ The CWA survey also found that, from
January 2017 to September 2018, there were 1,459 recordable
injuries and illnesses among Envoy employees at U.S. airports,
with more than 800 of those injuries being strains and sprains
typically caused by lifting, pushing, or pulling.\48\
Additionally, according to the SEIU, 99 people were killed in
airport ramp accidents from 2001 to 2014.\49\
---------------------------------------------------------------------------
\43\ See Jansen, supra note 38.
\44\ Kelly Yamanouchi, Delta reaches OSHA settlement in bag
handler's death, Atlanta Journal-Const. (Apr. 17, 2012), https://
www.ajc.com/business/delta-reaches-osha-settlement-bag-handler-death/
Otm1uuCKAcYI71ZX1iYFGM/.
\45\ CWA, Survey of Gate and Ramp Agents at American Airlines
Subsidiary Report Hazardous Conditions at 8 (Jan. 14, 2019), available
at https://cwa-union.org/news/releases/gate-and-ramp-agents-american-
airlines-subsidiary-report-hazardous-conditions.
\46\ Id.
\47\ Id.
\48\ Id. at 5.
\49\ Bart Jansen, USA Today, Congested Airport Ramps Risky Before
and After Flights (Dec. 17, 2017), https://www.usatoday.com/story/news/
nation/2014/12/17/airport-ramp-safety-airlines-iata-faa-osha-ntsb/
18597565/.
---------------------------------------------------------------------------
And while most of the health issues these workers face are
physical, many health issues can also stem from mental
exhaustion. For instance, in 2018, an American Airlines bus
driver (employed through Envoy) suffered a fatal heart attack
while on the job; in the week leading up to his death, he had
worked 66 hours in six days.\50\ Colleagues and family cite
chronic stress, extended work hours, and dangerous and
stressful conditions for Envoy workers as contributing factors
for the driver's death.\51\ Numerous Envoy workers at the Miami
airport surveyed by CWA stated feeling rushed to meet
deadlines, citing understaffing as a main reason.\52\
---------------------------------------------------------------------------
\50\ Taylor Dolven, American Airlines Worker at MIA Died of a Heart
Attack. His Coworkers Blame the Job, Miami Herald (Jan. 14, 2019),
https://www.miamiherald.com/news/business/tourism-cruises/
article224524845.html.
\51\ Id.
\52\ Id.
---------------------------------------------------------------------------
A December 2015 GAO report on air travel and communicable
diseases following the 2014 Ebola outbreaks described how
aviation service providers may not have ensured that workers
have the necessary training and protective equipment to safely
and properly respond to communicable diseases.\53\ Contracted
aviation-service employees expressed concern that they did not
receive adequate communicable disease training and reported
challenges accessing appropriate personal protective equipment,
cleaning equipment, and cleaning supplies.\54\ Inadequate
training, equipment, and supplies could lead to employee
exposures to pathogens that could in turn result in the
transmission of infectious diseases.\55\
---------------------------------------------------------------------------
\53\ See Gov't Accountability Office, Air Travel and Communicable
Diseases: Comprehensive Federal Plan Needed for U.S. Aviation System's
Preparedness, at 38, GAO-16-127 (Dec. 16, 2015), https://www.gao.gov/
products/GAO-16-127.
\54\ Id.
\55\ Id.
---------------------------------------------------------------------------
A December 2018 union survey of Gate Gourmet drivers
reported safety and health concerns with the catering vehicles
used to service planes, with 97 percent of drivers reporting
that the company is continuing to use vehicles which are
labeled ``no go'' due to issues such as broken safety rails,
missing emergency equipment, broken brakes, and rodent and
insect infestations.\56\ The Food and Drug Administration (FDA)
cited Gate Gourmet after discovering a string of health and
safety infractions at one of the company's main production
kitchens in Kentucky.\57\ The FDA's citation letter stated
inspectors found ``dead apparent nymph and adult cockroaches
too numerous to count'' within food-preparation areas and ``a
heavy buildup of more than a day's accumulation of grease, food
deposits, and general filth.'' \58\ This followed a November
2017 FDA inspection of Gate Gourmet's Los Angeles production
facility, in which listeria bacteria was discovered. This led
to American Airlines, Delta Airlines, and Virgin America
immediately stopping their utilization of the Gate Gourmet
services until these issues were addressed.\59\ Gate Gourmet
ultimately addressed the issues and the FDA closed out the
issue on May 14, 2018.\60\
---------------------------------------------------------------------------
\56\ Int'l Bhd. of Teamsters, Gate Gourmet's Unsafe Vehicle Fleet
Could Force Delays at World's Busiest Airport, (Dec. 21, 2018), https:/
/teamster.org/news/2018/12/gate-gourmets-unsafe-vehicle-fleet-could-
force-delays-worlds-busiest-airport.
\57\ Noam Scheiber, 11,000 People Who Prepare Your Airline Food Are
Considering a Strike, N.Y. Times (June 4, 2019), https://
www.nytimes.com/2019/06/04/business/economy/airport-workers-union.html.
\58\ Id.
\59\ Kelsey M. Mackin, FDA Downgrades Gate Gourmet Airline Catering
Operation, Food Safety News (Apr. 16, 2018) https://
www.foodsafetynews.com/2018/04/fda-downgrades-gate-gourmet-
airline-catering-operation/.
\60\ See FDA, Closeout Letter (May 14, 2018), available at https://
www.fda.gov/inspections-compliance-enforcement-and-criminal-
investigations/warning-letters/gate-gourmet-inc-05142018.
---------------------------------------------------------------------------
WITNESSES
LMs. Eileen Higgins, Commissioner, Miami-Dade
County, Florida
LMs. Donielle Prophete, Vice President,
Communications Workers of America Local 3645
LMr. Esteban Barrios, Service Employees
International Union
LMs. Marlene Patrick-Cooper, President, Unite Here
Local 23
LDr. Brian Callaci, Labor Economist
LMr. Chris Harrison, Airlines for America
LMr. Russell Brown, RWP Labor
OVERSIGHT OF WORKING CONDITIONS FOR AIRLINE GROUND WORKERS
----------
WEDNESDAY, JANUARY 15, 2020
House of Representatives,
Subcommittee on Aviation,
Committee on Transportation and Infrastructure,
Washington, DC.
The subcommittee met, pursuant to notice, at 10:02 a.m. in
room 2167, Rayburn House Office Building, Hon. Rick Larsen
(Chairman of the subcommittee) presiding.
Mr. Larsen. The subcommittee will come to order.
I want to start by asking unanimous consent the chair be
authorized to declare recesses during today's hearing.
Without objection, so ordered.
I also ask unanimous consent Members not on the
subcommittee be permitted to sit with the subcommittee at
today's hearing and ask questions.
Without objection, so ordered.
I will proceed with an opening statement before recognizing
Mr. Garret Graves, the ranking member, for an opening
statement.
So good morning and thank you to the witnesses for joining
today's hearing on working conditions for airline ground
workers.
I have been on the Committee on Transportation and
Infrastructure for now nearly 20 years, and I believe today--
when we go back into the record--is the first hearing dedicated
to issues specifically facing ground workers, the women and men
who load baggage, clean cabins, and assist passengers in
wheelchairs, and prepare meals, among other jobs.
Without ground workers, commercial air travel would come to
a halt. That is why the House passed major pro-worker
legislation last year to support the hard-working women and men
who, literally, keep the airline industry and many other parts
of the economy moving.
We passed the Butch Lewis Act, which passed the House in
July, and it protected hard-earned workers' pensions and long-
term financial security, which eventually was signed into law.
We passed the Raise the Wage Act, which also passed the
House in July, and supports American workers by raising the
Federal minimum wage to $15 an hour by 2025.
It is also my hope the House will soon vote on the Protect
the Right to Organize, or PRO Act, to strengthen workers'
rights to organize and bargain collectively, and hold employers
who violate workers' rights accountable.
A strong, economic foundation for workers requires fair and
secure workplaces. So while progress has been made, Congress
wants to do more to provide oversight for and improve the pay
and working conditions of ground workers, the two main issues
that we will focus on at today's hearing.
Even as the airline industry continues to grow, and more
people than ever are choosing to fly, not all ground workers
are sharing in the benefits. Today the committee will hear from
labor representatives about the tens of thousands of ground
workers who make less than $15 an hour, some making under $10
an hour, working long days and nights in catering kitchens or
on airport tarmacs. The committee will also hear stories
highlighting the unsafe and unhealthy conditions many ground
workers face.
For instance, a recent Communications Workers of America
survey of 900 passenger service agents at Envoy Air, a regional
subsidiary of a large mainline carrier, revealed that 27
percent of respondents rely on some form of public assistance.
Often that is food stamps.
An April 2019 investigation by the Miami CBS affiliate
revealed troubling safety and health issues in the Miami
operation of a major ground-support provider. Workers have
reported cockroach infestations in vans transporting blankets
and other supplies to aircraft, and were instructed ``not to
waste time cleaning [cabins] too thoroughly,'' even when the
workers encountered biohazards in airplane cabins.
A Federal investigation found the company was also exposing
its employees to heat that ``was causing or likely to cause
harm.'' The committee will hear from Mr. Esteban Barrios about
his personal experience as an employee for that company.
We will also hear from Miami-Dade County Commissioner
Eileen Higgins, who is on the front line in Miami in the effort
to secure better working conditions for ground workers at the
airport. I look forward to all their testimony.
Unfortunately, these are not isolated incidents. These
reports speak to the social responsibility and unwavering
commitment to safety expected of all firms engaged in aviation.
A representative of Airlines for America is with us today,
and I look forward to hearing his perspective on how airlines
will work to ensure ground workers are compensated fairly, and
protected from unsafe working conditions.
The 21st-century U.S. aviation system is deeply
interconnected. Safety lapses on the ground threaten the safety
in the air. That is why it is important for Congress to further
explore these issues. In a time of record airline profits and a
record number of passengers traveling by air, there is an
obvious, now, disconnect when a growing number of ground
workers cannot enjoy the benefits of a system that thrives on
the backs of their labor.
That is why I hope today's hearing will shed light on this
committee's opportunity to improve the safety culture of the
entire aviation industry. A safer, fairer working environment
for ground workers will create a safer, stronger aviation
system for workers, passengers, and airlines alike.
I want to thank, again, today's witnesses. I look forward
to our discussion.
[Mr. Larsen's prepared statement follows:]
Prepared Statement of Hon. Rick Larsen, a Representative in Congress
from the State of Washington, and Chairman, Subcommittee on Aviation
Good morning and thank you to the witnesses for joining today's
hearing on working conditions for airline ground workers.
In my time on the Transportation and Infrastructure Committee, I
believe today is the first hearing dedicated to issues facing ground
workers: the women and men who load baggage, clean cabins, assist
passengers in wheelchairs and prepare meals, among other jobs.
Without ground workers, commercial air travel would come to a halt.
That is why the House passed major pro-worker legislation last year to
support the hardworking women and men who literally keep the airline
industry and the economy moving.
The Butch Lewis Act, which passed the House in July,
protects hard-earned workers' pensions and long-term financial
security.
The Raise the Wage Act, which also passed the House in
July, supports American workers by raising the federal minimum wage to
$15 an hour by the year 2025.
It is my hope the House will soon vote on the Protect the
Right to Organize, or PRO Act to strengthen workers' right to organize,
bargain collectively and hold employers who violate workers' rights
accountable.
A strong economic foundation for workers requires fair and secure
workplaces.
While progress has been made, Congress must do more to provide
oversight for and improve the pay and working conditions of ground
workers--the two main issues I want to focus on at today's hearing.
Even as the airline industry continues to grow and more people than
ever are choosing to fly, not all ground workers are sharing in the
benefits.
Today, the Committee will hear from labor representatives about the
tens of thousands of ground workers who make less than $15 an hour--
some making under $10 an hour--working long days and nights in catering
kitchens or on airport tarmacs.
The Committee will also hear stories highlighting the unsafe and
unhealthy conditions many ground workers face.
For instance, a recent Communications Workers of America (CWA)
survey of 900 passenger service agents at Envoy Air, a regional
subsidiary of a large mainline carrier, revealed that 27 percent of
respondents rely on some form of public assistance, often food stamps.
An April 2019 investigation by the Miami CBS affiliate revealed
troubling safety and health issues in the Miami operation of a major
ground-support provider.
Workers reported cockroach infestations in vans transporting
blankets and other supplies to aircraft and were instructed ``not to
waste time cleaning [cabins] too thoroughly,'' even when the workers
encountered biohazards in airplane cabins.
A federal investigation found the company was also exposing its
employees to heat that ``was causing or likely to cause harm.''
The Committee will hear from Mr. Esteban Barrios about his personal
experience as an employee for that company.
We will also hear from Miami-Dade County Commissioner Eileen
Higgins, who is on the front line in Miami in the effort to secure
better working conditions for ground workers at the Miami airport. I
look forward to their testimony.
Unfortunately, these are not isolated incidents. These reports
speak to the social responsibility--and unwavering commitment to
safety--expected of all firms engaged in aviation.
A representative of Airlines for America is with us today, and I
look forward to hearing his perspective on how airlines will work to
ensure ground workers are compensated fairly and protected from unsafe
working conditions.
The 21st century U.S. aviation system is deeply interconnected.
Safety lapses on the ground threaten safety in the air.
That is why it is imperative for Congress to further explore these
issues.
In a time of record airline profits and a record number of
passengers traveling by air, there is an obvious disconnect when a
growing number of ground workers cannot enjoy the benefits of a system
that thrives on their backs of their labor.
It is my hope today's hearing will shed light on this committee's
opportunity to improve the safety culture of the entire aviation
industry.
A safer, fairer work environment for ground workers will create a
safer, stronger aviation system for workers, passengers and airlines
alike.
Thank you again to today's witnesses. I look forward to our
discussion.
Mr. Larsen. And with that I will turn to the ranking member
for an opening statement.
Mr. Graves of Louisiana. Thank you, Mr. Chairman. Mr.
Chairman, I hope you agree. I see Congresswoman Shalala here. I
think if she puts in about another 20 years of service, we can
maybe qualify her to be on this committee.
Mr. Larsen. Perhaps.
Mr. Graves of Louisiana. But I appreciate you being here.
No, I know you are here for your constituent. Thank you for
joining us today.
Thank you, Mr. Chairman, for calling today's hearing. This
hearing touches on a topic that the subcommittee and, quite
honestly, most airline passengers don't often think about. It
is sort of the below-the-wing workers, the aircraft cleaners,
caterers, wheelchair pushers. They don't have quite as high of
a profile of jobs as the flight attendants, the mechanics,
pilots, and others, but the services they provide are necessary
and integral to the overall system of safety that is necessary
to ensure that passengers do have safe, efficient, and
comfortable flying experiences.
Across all modes of transportation, safety is this
subcommittee's top priority. And we must continue to focus on
that issue. Commercial aircraft accidents, fatalities, are at
the lowest level in history. But in the last decade some ground
workers have been injured or killed as a result of on-the-job
accidents. It is important that this subcommittee hear what can
be done by the FAA, by industry, and others to ensure that we
are improving safety for airline ground workers, as well.
Contract services is an essential part of all industries,
and aviation is no exception. There are many airline-related
services that have always been contracted out by nearly all
airlines. Others are contracted at airports where, due to the
low frequency of flights, it would simply be economically
infeasible to provide air service without the use of contracted
workers. To the small and rural communities served, airlines
provide jobs, connections, and economic opportunities. If
airlines were unable to contract airside services, they would
not be able to continue serving these communities.
It is also crucial the subcommittee understand the role and
importance of the Railway Labor Act to United States air
transportation. In Europe, near-constant strikes keep railroads
and airlines in a state of uncertainty and disarray.
Both airlines and aviation workers in this country have
thrived under the oversight of the National Mediation Board,
because of the efforts to promote resolution, compromise, and
accommodation, while discouraging strikes. Unions wishing to
organize new categories of aviation employees must recognize
how vital systemwide representation is to the continued success
of aviation and the nearly 750,000 workers directly employed by
airlines.
I am looking forward to hearing from the witnesses about
the role of this critical transportation labor law.
[Mr. Graves of Louisiana's prepared statement follows:]
Prepared Statement of Hon. Garret Graves, a Representative in Congress
from the State of Louisiana, and Ranking Member, Subcommittee on
Aviation
This hearing touches on a topic that this subcommittee and quite
honestly most airline passengers seldom consider. Below-the-wing
workers, aircraft cleaners, caterers, and wheelchair pushers may not
have as high-profile jobs as flight attendants, mechanics, and pilots,
but the services they provide are necessary to ensuring a safe,
efficient, and comfortable flying experience for the traveling public.
Across all modes of transportation, safety is this committee's and
subcommittee's highest priority. Commercial aircraft accident
fatalities are at the lowest level in history, but in the last decade,
some ground workers have been injured or killed due to on-the-job
accidents. It is important for this subcommittee to hear what can be
done by the FAA, industry, and labor to improve safety for airline
ground workers.
Contracting for services is an essential part of all industries,
and aviation is no exception. There are many airline-related services
that have always been contracted out by nearly all airlines. Others are
contracted at airports where, due to the low frequency of flights, it
would simply be economically infeasible to provide air service without
the use of contract workers.
To the small or rural communities served, airlines provide jobs,
connections, and economic opportunities. If airlines were unable to
contract airside services, they would not be able to continue serving
these communities.
It is also crucial that this subcommittee understand the role and
importance of the Railway Labor Act to United States air
transportation. In Europe, near constant strikes keep railroads and
airlines in a state of uncertainty and disarray. Both airlines and
aviation workers in this country have thrived under the oversight of
the National Mediation Board because of its efforts to promote
compromise and accommodation while discouraging strikes. Unions wishing
to organize new categories of aviation employees must recognize how
vital systemwide representation is to the continued success of aviation
and the nearly 750,000 workers directly employed by airlines.
I look forward to hearing from the witnesses about the role of this
critical transportation labor law.
Mr. Graves of Louisiana. And thank you again, Mr. Chairman,
for holding today's hearing. I look forward to hearing the
discussion, and yield back the balance my time.
Mr. Larsen. Thank you, Mr. Graves. I appreciate that.
I want to now welcome the panel of witnesses. I will just
read the names. And I guess Mr. DeFazio would like to be
recognized for 5 minutes, but not to read the names. Thank you
very much.
Mr. DeFazio. Thank you, Mr. Chairman. I have been on the
committee even longer than you, I hesitate to say, but 32
years.
Mr. Larsen. I did not make that point to have a contest
with you, Mr. Chairman.
Mr. DeFazio. To the best of my recollection, as foggy as my
memory may be, we have never, ever held a hearing on this
subject before. And it is long overdue.
This is becoming a pattern before this committee: profits
over people. Look at what happened with Boeing and the MAX: 346
dead passengers and crew, 1 rescuer, 347 people dead. At the
same time, Boeing was buying back stock, paying dividends, and
rewarding its CEO generously, who is leaving with a $63 million
package. And here we are seeing the same thing for the
essential people who make this industry work to get the planes
and cleaned and secure, and get the baggage on board.
The airlines made a collective $11.8 billion in profits in
2018. The big three have bought back $31.3 billion--billion--in
stock in the last 7 years, 6 years. The CEOs of the three U.S.
legacy carriers--American, Delta, and United--made $37.5
million combined in 2018. And, according to a Skift analysis,
the American CEO earned 195 times the median pay of his
employees, let alone the ground workers--it would be much, much
more than that. The Delta CEO earned 184 times median, and
United 144.
But as we are going to hear today in the testimony, many of
these essential workers earn as little as $9 an hour, sleep in
their cars. Some have to resort to public assistance, food
stamps. They are at risk with a high rate of injury, sometimes
fatal. They can't afford health insurance. And some even sell
blood plasma to support their work habit of being underpaid.
And we are seeing more and more outsourcing, and more and
more profitability. We will hear from a labor economist today
that will say outsourcing of ground work has increased by 60
percent since 2001. It is a race to the bottom.
And we are going to hear from folks in Miami, where perhaps
we have hit the bottom. An obscure firm called Eulen America--I
wish they weren't using the word ``America''--provides ground-
support services like baggage handling and cabin cleaning for
American and Delta. Eulen has been cited for exposing employees
to cockroach infestations--and, of course, obviously, that
affects the food service on the planes--excessive heat, not
even adequate protection in terms of hearing, often dangerous
and unhealthy working conditions.
We will hear from Esteban Barrios, who will testify on
today's panel. He is a Eulen employee, loads and unloads bags
on Delta planes in Miami. He said in his written testimony,
``Sometimes I'm lifting almost 300 bags a day by myself. My
whole body hurts. My hand is constantly in pain. But, what can
we do? We don't have sick days so we can't take a day off to
get better. So we just take painkillers and try to get through
the day.''
We will hear from Miami-Dade County Commissioner Eileen
Higgins, and she is going to talk about how, when she went to
investigate these conditions, she was actually intimidated by
employees of the Eulen Corporation.
We have seen other issues of routine exposure to harmful
chemicals, violations of OSHA, communicable diseases, blood-
borne pathogens, dangerous levels, as I mentioned already, a
lack of hearing protection, noise, tractors that are unstable
and lack seatbelts, and people have been crushed.
We are going to shine a light on this, and it is time for
this abuse to stop. In an immensely profitable industry, they
can do better, and they should do better, and we will do all we
can in this committee to encourage that.
[Mr. DeFazio's prepared statement follows:]
Prepared Statement of Hon. Peter A. DeFazio, a Representative in
Congress from the State of Oregon, and Chairman, Committee on
Transportation and Infrastructure
Thank you, Chair Larsen, for calling today's hearing on working
conditions for the tens of thousands of employees who are intrinsic to
the operations of an airline--the workers who load bags, clean cabins,
prepare food, and assist passengers in wheelchairs, among other roles.
But this hearing is about more than just the unreasonable treatment
of these hardworking employees. It's about putting profits over people:
yet another vignette in a larger story of economic inequality and
injustice in America, and of American companies subservient to Wall
Street at the expense of their employees and, ultimately, their
customers.
Let's start with some numbers:
U.S. airlines made a collective $11.8 billion in profits
in 2018.
One airline alone has rewarded Wall Street with $12
billion in share buybacks since 2014. Others have done similarly.
The CEOs of the three U.S. legacy carriers--American,
Delta, and United--made a combined $37.5 million in 2018. According to
a Skift analysis, the American CEO earned 195 times the median pay of
his employees; the Delta CEO earned 184 times workers' median pay; and
the United CEO, 144 times.
Yet, today we will hear that many employees who work on behalf of
these and other airlines, either in catering kitchens or in the
elements on the tarmac:
make as little as $9 an hour;
sleep in their cars in employee parking lots;
occasionally suffer grievous injuries, sometimes even
fatal injuries, on the job;
can't afford health insurance; and
even sell blood plasma to make ends meet.
Large mainline carriers have been outsourcing more and more of
their operations to save a dollar here, a dollar there. They outsource
flights--even flights on trunk routes like Washington to Chicago--to
regional airlines. They outsource baggage handling, catering, and cabin
cleaning to contractors.
In fact, a labor economist on today's panel will offer that this
outsourcing of ground work has increased by nearly 60 percent since
2001. And as anyone knows, in a system where the lowest bidder wins,
it's a race to the bottom.
We may well have reached that bottom in Miami, where an obscure
firm called Eulen America provides ground-support services like
baggage-handling and cabin-cleaning for American and Delta. Eulen has
been cited for exposing employees to cockroach infestations, excessive
heat, and other dangerous and unhealthy working conditions. Mr. Esteban
Barrios, who will testify on today's panel, is a Eulen employee who
loads and unloads bags on Delta planes in Miami. In his written
testimony, Mr. Barrios says, ``Sometimes I'm lifting almost 300 bags a
day by myself. My whole body hurts. My hand is constantly in pain. But,
what can we do? We don't have sick days so we can't take a day off to
get better. So we just take pain killers and try to get through the
day.''
Miami-Dade County Commissioner Eileen Higgins has also joined us
today and will describe how a Eulen corporate minion intimidated her on
a visit to the Eulen operation and others at the Miami airport.
On top of often absurdly low wages, airline ground workers can face
some of the poorest working conditions in America. Workers report, and
contractors have been cited for, routine exposure to harmful chemicals,
communicable diseases or blood-borne pathogens, excessive heat on
tarmacs, and dangerous noise levels from surrounding aircraft. Workers
have been thrown from tractors due to missing or defective seatbelts,
have been pinned beneath or struck by vehicles on the tarmac, and have
fallen from jet bridges.
These workers have been injured, paralyzed, or even killed in their
inherently dangerous jobs. In fact, a baggage worker was killed just
last year after his tug vehicle rolled over on the tarmac at the
Charlotte-Douglas International Airport. One of today's witnesses, Ms.
Donielle Prophete, knew this gentleman and can speak to the troubling
working conditions she and her colleagues face at Charlotte and at
airports around the country.
While we sit comfortably waiting to board our flights, airline
ground workers are out of sight, out of mind. That ends today.
There's no question airline ground workers perform work of great
importance that is vital to keeping our aviation system thriving and
moving forward. However, it's unconscionable that while thousands and
thousands of these workers are facing such deplorable working
conditions each day, they're still living below the poverty level.
We must do more to ensure airline ground workers enjoy livable
wages, and healthy and safe working conditions. I have spent my career
fighting on behalf of American workers. As Chairman of this Committee,
I will ensure we continue to bring light to the often-bleak issues
facing American workers today, in each mode of transportation. We will
keep today's panel and their stories in mind as we carry out our
Committee's work in the years to come and ensure that transportation
enterprises stop putting profits over people.
Thank you again, Chair Larsen, for calling this important hearing.
I look forward to the witness testimony.
Mr. DeFazio. Thank you, Mr. Chairman.
Mr. Larsen. Thank you, Chairman DeFazio.
Before I recognize the panel witnesses, I would note that
some Members, including Ranking Member Graves, have a markup in
another committee, and he may be leaving because he has some
amendments, and markups usually mean votes in committee. So I
know he may have to pop in and out, and there may be other
Members in the same circumstance. I just want to let the panel
know that.
I want to thank our panel of witnesses, as well, do just
quick names and titles here, and then turn to Representative
Wilson for a more complete introduction of one of the panel
witnesses.
So we have Ms. Eileen Higgins, commissioner of Miami-Dade
County; Ms. Donielle Prophete, the vice president of
Communications Workers of America Local 3645; Mr. Esteban
Barrios, Service Employees International Union Local 32BJ; Ms.
Marlene Patrick-Cooper, president of UNITE HERE Local 23; Dr.
Brian Callaci, labor economist; Mr. Chris Harrison with
Airlines for America; and Mr. Russell Brown of RWP Labor.
I want to thank you all for being here today. We look
forward to your testimony.
Without objection, the witnesses' full statements will be
included in the record. And since that is the case, they have
been made part of the record, the subcommittee does request
that you limit your oral testimony to 5 minutes.
So, before we turn to our panel of witnesses, I do want to
turn to Representative Wilson for an introduction of Mr.
Esteban Barrios.
Representative Wilson, you are recognized.
Ms. Wilson. Oh, thank you. Thank you so much, Chairman
Larsen. And I want to welcome all of the members of SEIU in the
audience, and all of the supporters of Mr. Barrios here today.
Thank you so much for traveling for this very, very important
hearing.
I am honored to introduce Mr. Esteban Barrios. His
testimony before this committee comes at a time when airline
ground workers are being marginalized, while their employers
generate record profits. Mr. Barrios has been on the frontline
of the fight for better working conditions and union
representation for ground workers at Miami International
Airport for a long time. For more than 4 years he has worked as
a ramp worker for Eulen America, an American and Delta Airlines
contractor at Miami International Airport.
Despite unbearable working conditions, which Mr. Barrios
will highlight in his testimony, he has worked extremely hard
to serve Delta customers and pursue a degree at Miami Dade
College.
Deteriorating working conditions, coupled with increasingly
severe injuries and Eulen's culture of intimidation and
indifference to workers' concerns have compelled Mr. Barrios to
say, ``Enough, I just can't take it anymore.'' Last year he
joined forces with Commissioner Higgins, SEIU, and the Miami-
Dade congressional delegation to fight for the workplace and
benefits that he and his coworkers deserve.
In April 2019, Mr. Barrios and his coworkers chronicled
their struggles in a CBS 4 Miami report, which brought their
fight to my attention. I immediately alerted the Subcommittee
on Aviation and, shortly thereafter, Congresswoman Shalala, who
was with us this morning, and I hosted a roundtable discussion
in Miami during which Mr. Barrios and his colleagues shared
their experience in riveting detail. It was amazing.
The months-long effort led by Mr. Barrios and coworkers
compelled OSHA to investigate working conditions at Miami
International Airport. OSHA ultimately found eight serious
violations that created unsafe working conditions. OSHA's
efforts to hold Eulen accountable is a testament to Mr.
Barrios' hard work and determination.
Mr. Barrios, we are tremendously proud of you for your
unflinching courage and commitment to fight for better working
conditions in MIA. Welcome to the Transportation and
Infrastructure Committee.
And thank you, Mr. Chairman. I yield back.
Mr. Larsen. Thank you, Representative Wilson. I also now
want to recognize Representative Mucarsel-Powell for an
introduction of Commissioner Eileen Higgins.
Ms. Mucarsel-Powell. Thank you so much----
Mr. Larsen. You are recognized.
Ms. Mucarsel-Powell [continuing]. Chairman Larsen. And it
is such a pleasure and an honor to introduce a great friend.
But more than that, one of the strongest leaders for workers'
rights in Miami-Dade County, Commissioner Eileen Higgins.
Commissioner Higgins represents district 5 in Miami-Dade
County, which represents over 200,000 residents there in Miami,
and parts of Miami Beach.
Commissioner Higgins is an engineer, by trade. She started
her career in manufacturing, worked her way up to manage large
departments in Fortune 500 companies before transitioning to
public service.
She has served as director of the Peace Corps, and as a
diplomat in the State Department, where she worked on economic
development opportunities in Latin America and in Africa.
Since she was elected to the Miami-Dade County Commission,
she has been working to provide her constituents with a fair
shot at achieving their American dream. It was Commissioner
Higgins who, right after her special election, which surprised
everyone--but it didn't surprise me, we knew she was going to
get in there, because she was so committed to improving the
lives of so many in Miami-Dade County--but it was Commissioner
Higgins who immediately wanted to go and visit the airport
after hearing about the unsafe work conditions. And she did
just that.
We thank her for speaking up and exposing the appalling
conditions that are inhumane and terribly unsafe for so many
workers at Miami International Airport. The low wages of hard-
working airport employees are just completely unacceptable.
Today she is going to be shining a light on what I think all of
us should consider as unacceptable practices that occur behind
the scenes at some of our country's biggest airports.
I want to thank Commissioner Higgins for coming here, for
bringing this issue to light to the Transportation and
Infrastructure Committee.
And we are looking forward to hearing from you today.
Thank you, Chairman. I yield back.
Mr. Larsen. Thank you, Representative. I appreciate that.
And good timing, because I now want to turn to our witnesses.
And we will start with Commissioner Eileen Higgins of Miami-
Dade County.
You are recognized for 5 minutes.
TESTIMONY OF HON. EILEEN HIGGINS, COMMISSIONER, MIAMI-DADE
COUNTY; DONIELLE PROPHETE, VICE PRESIDENT, COMMUNICATIONS
WORKERS OF AMERICA LOCAL 3645; ESTEBAN BARRIOS, RAMP WORKER,
MIAMI INTERNATIONAL AIRPORT, ON BEHALF OF SERVICE EMPLOYEES
INTERNATIONAL UNION LOCAL 32BJ; MARLENE PATRICK-COOPER,
PRESIDENT, UNITE HERE LOCAL 23; BRIAN CALLACI, PH.D.,
POSTDOCTORAL SCHOLAR AND LABOR ECONOMIST; CHRIS HARRISON, ON
BEHALF OF AIRLINES FOR AMERICA; AND RUSSELL BROWN, CHIEF
EXECUTIVE OFFICER, RWP LABOR
Ms. Higgins. Thank you very much, Chairman DeFazio and
subcommittee Chairman Larsen, and Ranking Member, distinguished
members of the subcommittee. Thank you so much for inviting me
here today.
As Members, you know better than most that our country's
airports are completely vital to our country's economic
strength. And nowhere is that more evident than in my home
county, Miami-Dade, where our airport hosted over 44 million
passengers in 2018.
What the passengers don't know is that, behind the scenes,
there is an army of workers making sure their flights get off
on time. They are unloading the bags, push elderly travelers in
wheelchairs, prepare the meals, clean the cabins, the jobs,
they are not fancy, but our airports can't function without
them. And these are the unnoticed and underappreciated workers
who make our airports tick.
Now, just because this work occurs behind the scenes should
not give employers a reason to treat them poorly. But not all
companies behave properly, do they? I would like to tell you
about how my personal experiences with one such company led me
to become such a vocal advocate for better treatment and better
pay for airport workers.
I met with a group of Eulen America workers who described
appalling conditions. So I decided I had to see for myself, and
joined several workers at their airport worksite, where they
shared even more stories. Some were worrisome, others downright
inhumane, like poorly maintained vehicles that also lacked
seatbelts, cockroaches running free in those vehicles, having
to clean up human feces and blood without gloves, like no water
provided to workers on the tarmac. Guys, this is Florida. It is
hot. The tarmac is hot. The airport engines are hot. What kind
of company does not provide drinking water to their workers?
These workers were afraid to report these issues to
management, because they feared losing their jobs. And I now
know why they were afraid, because I was just minutes away from
experiencing this top-down culture of fear firsthand when I
entered the break room. A Eulen supervisor immediately ran over
to us saying, ``There is going to be trouble here.'' And then
an airline manager rushed over, towering above me, shouting
that I needed to leave because this was private property. No,
the airport is the property of the residents of Miami-Dade
County.
But I didn't want to escalate things, so I left and
continued on my official airport tour. This same Eulen
supervisor followed us everywhere we went. When we stopped, he
stopped, making sure that the workers and I knew he was
watching us. It was meant to be intimidating, and it was.
I was shocked. If this company is willing to intimidate an
elected official, I could only imagine what it was willing to
do with employees, with its employees who needed these jobs to
put food on the table and pay the rent.
I sent a strong letter to the company's CEO, requesting
that he open a dialogue with the workers to improve conditions.
I sent that letter on January 8th of last year. He did not
respond. So that is when I called my congressional
representatives for help, and they hosted the public roundtable
with the employees that brought widespread media attention, and
finally prompted the company's CEO to request a meeting, where
he assured me the company would audit the worker conditions,
and that he would keep me informed as changes were made. He did
not keep me informed.
In October, OSHA issued the company a series of formal
citations with penalties. Sure enough, the workers' reports
were true: cockroaches, true; no protection against exposure to
blood and needles, true; no drinking water to prevent against
heat exposure, true; missing seatbelts on vehicles, true;
falling hazards, tripping hazards, and more.
The workers, two congresswomen, SEIU, and I pointed out
these health and safety problems to Eulen's CEO long before
OSHA did. The company ignored all of us, unfortunately
demonstrating that our workers can only be kept safe from this
company's management practices through consistent Federal
safety inspections.
To prevent these sorts of bad actors from working at Miami
International Airport in the future, I am proposing legislation
next week to our county commission to create an entirely new
procurement process that will force Eulen to become a
responsible corporate citizen, or replace them with a company
that is.
We ask you and Congress to do its part, too, and encourage
airlines and their subcontractors to comply with basic
standards of working conditions, local living wages, and, in
the case of this company, basic human decency. Thank you.
[Ms. Higgins' prepared statement follows:]
Prepared Statement of Hon. Eileen Higgins, Commissioner, Miami-Dade
County
My name is Eileen Higgins and I am the Miami-Dade County
Commissioner for District 5 which encompasses large portions of the
cities of Miami and Miami Beach. By a standard measure of economic
inequality (Gini coefficient), Miami-Dade County has the second-largest
gap in the nation between the have and the have-nots, which is on par
with Panama and Colombia. This is uniquely evident in the District I
serve. In its annual look at America's richest ZIP codes, Bloomberg,
Inc. found that Fisher Island is home to the country's wealthiest
residents with an average annual income of $2.2 million. Juxtapose that
with Little Havana in the City of Miami, which has a high concentration
of poverty with families struggling to make ends meet as they work in
Miami-Dade's typical jobs, making low wages in the service sector.
Tourism serves as a top driver of Miami-Dade County's economy.
According to the United Way's 2018 ALICE Report, nearly half of Miami-
Dade's workers labor in service jobs in tourism, retail and food
service, taking home an average of just $26,532 per year, which is
approximately 15% below the living wage determined by the County. Many
airline subcontractors make far less. For example, airline catering
workers at Miami International Airport (MIA) often have a starting wage
of far less at a mere $10.00 per hour and UNITE HERE reports that less
than 20% of these catering workers have health insurance. It's tough to
make ends meet in Miami and even tougher if you work for an airline
subcontractor.
Airport ground workers provide critical services to passengers and
airlines throughout the country. At MIA, several thousand ground
workers unload our baggage, push the wheelchairs that move disabled or
elderly travelers, clean the aircraft cabins, and perform important
security checks between flights. More than 1,000 workers prepare and
load the food passengers eat in flight. Although these employees work
behind the scenes, our airports simply can't function without their
services. They are the unnoticed and underappreciated who make our
airports tick.
As the County Commissioner for Little Havana, I met workers who
expressed concerns over their working conditions at airline
subcontractors. The stories I heard about one particular company, Eulen
America, were particularly worrisome.
December 2018 Airport Visit with Eulen Employees
On December 12, 2018, I joined several Eulen workers and 32BJ SEIU
for a tour of their worksites at the airport. During the visit, I heard
from three workers about poor and unsafe work conditions. Some were
very worrisome--like poorly maintained vehicles that also lacked seat
belts and roaches running free in the vehicles the cleaning crews use
to clean the cabins and in the breakroom. They told me they didn't have
enough time to complete important security checks on the planes. Other
conditions were downright inhumane given the heat conditions on the
tarmac--like water not being provided to workers. They expressed fear
in reporting these issues to management because they said they had seen
colleagues lose their jobs by doing so.
I experienced this culture of fear first-hand while touring the
break room facilities. A Eulen supervisor ran over to us aggressively
shouting ``there is gonna be trouble!''. Another airline supervisor
also approached and demanded that we leave because ``This is private
property!''.
MIA is the property of the residents of Miami-Dade County and I am
one of the officials these residents have elected to represent their
interests at the airport.
Not wanting to escalate things, I left to continue our airport
sanctioned tour. A Eulen supervisor followed us on a Eulen vehicle as
we visited other gates and sites on the ramp throughout the airport.
When we stopped, he stopped, making sure that the workers and I knew he
was watching us. It was meant to be intimidating--and it was.
I was shocked that as a County Commissioner, I would witness and be
subject to intimidating behavior. If this company is willing to
intimidate an elected official, I can only imagine what they are
willing to do to employees who need these jobs to pay the rent and put
food on the table for their families. And all of this was happening at
an airport owned by the people of Miami-Dade.
This shocking experience prompted me to send a letter to the CEO of
Eulen America, Mr. Xavier Rabell, requesting that he open a dialogue
with the workers so that all parties may work together to improve
conditions. I sent that letter on January 8, 2019. He did not respond.
April 2019 Congressional Roundtable at Miami International Airport
On April 24, 2019, I joined U.S. Representatives Donna Shalala and
Frederica Wilson at a roundtable with Eulen employees where several
workers shared their experiences and reiterated their stories of unsafe
vehicles, unavailability of drinking water, lack of gloves when
cleaning biological fluids and needles, roach infestations in vehicles
and in the breakroom, and more. Their stories reinforced that workers
felt they could not express these health and safety issues to Eulen
management because they feared their hours will be cut or that they
would lose their jobs altogether.
This roundtable brought widespread media attention to the issue and
finally prompted the CEO of Eulen America, Mr. Xavier Rabell, to
request a meeting. I met with Mr. Rabell in May 2019, where he assured
me that Eulen would coordinate a third party audit of its operations
and ``make substantive and lasting enhancements.'' He confirmed that
commitment in an email where he also stated that he would keep me
informed about all progress made. He did not.
Allegations of Retaliation
I was told that workers who joined me on the tour and others who
had advocated for improved conditions felt they were being retaliated
against by having their pay or hours reduced. When one of the workers,
Esteban Barrios, who believed his pay had been cut, wanted to deliver a
letter to Eulen's human resource department, I and several of his
colleagues accompanied him. I was worried he would be fired for vocally
raising his concerns about the unsafe working conditions he had
described to me. Incredibly, rather than simply accepting the letter
and moving on with their day, Eulen employees called the police.
Fortunately, our professional Miami-Dade County police officers quickly
determined that I was not, nor were the workers, a threat. However, it
was another example that the policy of this company is intimidation
rather than interaction and dialogue.
OSHA Verifies Health & Safety Violations
The stories that workers told me personally and at the
Congressional Roundtable have now been verified by the federal
government when the Occupational and Safety Administration (OSHA)
issued formal citations and fined Eulen (attached). Sure enough, the
workers' reports were true. Cockroaches: true. No protection against
exposure to blood and needles: true. No drinking water to protect
against heat exposure: true. Missing seatbelts on vehicles: true.
Falling hazards, tripping hazards, and more.
The workers, two Congresswomen, 32BJ SEIU, and I pointed out these
health and safety problems to Eulen's CEO long before OSHA did. The
company had ignored the input of workers and my input as a County
elected official, unfortunately demonstrating that our workers can only
be kept safe from this company's management practices through
consistent federal safety inspections.
More than one year after my visit, there is still little evidence
that Eulen is capable of or has any intention of creating a work
environment that is safe, productive, and worthy of the residents of
Miami Dade County.
Concluding Thoughts
Based on my personal experience in the airport and in conversations
with workers, it is apparent to me that there is a deep-seated culture
of intimidation and ill attention to safety issues at Eulen. Coupled
with the typical low wages paid to airline subcontractors for GASP and
catering services, airlines continue to use subcontractors who are not
required to pay our County's living wage rate to drive their profits
up.
Next week, I am presenting legislation to the Miami-Dade County
Commission to implement a new procurement process locally that will
force Eulen to become a responsible corporate citizen or replace them
with a responsible provider. We will be ranking companies who need a
permit to work at MIA based on technical merit, but will allow
companies to present their employment conditions as part of a
competitive bid, including wage rates, insurance benefits, health and
safety protections, and, crucially, existing or prior notices of
violation from regulatory agencies. We are trying to do our part
locally. We ask Congress to do its part too and help ensure that
profitable airlines and their subcontractors comply with basic
standards of worker conditions and comply with local wage standards.
Mr. Larsen. Thank you. I now turn to Donielle Prophete,
vice president, Communications Workers of America Local 3645.
You are recognized for 5 minutes.
Ms. Prophete. Is it working? Chairman Larsen, Ranking
Member Graves, and members of the subcommittee, thank you for
the opportunity to testify today to discuss the health and
safety hazards facing airline----
Mr. Larsen. Ms. Prophete, could you--you can pull the box
towards you. The whole box will move. So you don't have to lean
over. Or whatever you have--there, great, yes. If it is more
comfortable for you----
Ms. Prophete. Can you hear me?
Mr. Larsen. Yes, that is great.
Ms. Prophete. OK.
Mr. Larsen. Thanks.
Ms. Prophete. Thank you for the opportunity to testify
today to discuss the health and safety hazards facing airline
ground service workers.
My name is Donielle Prophete, I am vice president for
Communications Workers of America, CWA, Local 3645.
I have worked for the American Airlines subsidiary,
Piedmont Airlines, for 15 years. I am a passenger service
agent, trained as both a gate agent and a ramp agent. So I am
very familiar with both jobs. I work at the Charlotte Douglas
International Airport, one of American's largest hubs.
American is a highly profitable company and pays out
billions to wealthy shareholders and executives. Yet American
is cutting costs, and outsourcing passenger service work to
low-wage contractors and regional airlines like Piedmont.
The impact on safety is of particular concern to me. Ground
workers who support aircraft on the tarmac face many dangers
that are not adequately addressed.
On the night of August 11, 2019, the worst possible tragedy
occurred when my coworker, Kendrick Hudson, died on the job at
Charlotte Airport. He was only 24 years old. That night
Kendrick was driving a tug and hit a piece of baggage that had
fallen on the tarmac, causing the tug to flip over. Kendrick
did not see the piece of baggage until it was too late, likely
because the bag was dark, and there was insufficient lighting.
His death was a shock to all of us.
Our local union had repeatedly raised concerns about
inadequate lighting with Piedmont management. In a recent
survey by CWA, 83 percent of ramp agents surveyed at Charlotte
reported insufficient lighting on the tarmac, and 96 percent
said that painted lines on the tarmac are hard to distinguish.
The second factor that contributed was the fallen baggage.
It is not unusual for baggage to fall from a cart due to
closures that are missing, broken.
We also have concerns about the stability of tugs. Had the
tug been more stable, like the newer models seem to be, it may
not have flipped over.
The results of the fatality investigation conducted by the
North Carolina Department of Labor have not yet been released.
I have participated in the investigation, as have other members
of CWA Local 3645. Our wish is that the investigation will
result in much-needed improvements to make work on the ramps
safer, and to prevent anyone else from dying on the job.
The safety hazards we face are made worse by Piedmont's
poverty wages. Many agents must work long, exhausting shifts,
face inconsistent schedules, take additional jobs, and rely on
Government assistance. All of these factors combined lead to a
very high injury rate. Last month CWA conducted a survey on
safety issues with 500 Piedmont agents: 94 percent of agents
view safety as a serious problem at their station.
One central factor is the time pressure we face. We have 69
percent of agents fearing discipline for missing deadlines.
Understaffing is a key concern. Seventy-four percent of
agents reported they feel rushed to do their jobs because of
understaffing. Understaffing also leads to missed breaks and
long periods of standing for a majority of agents. On the ramp
more than half of agents said they work with defective
equipment in all or most of their shifts.
Our managers should address concerns when we raise them. At
my station, two-thirds of the surveyed agents said they had
reported a safety concern in the past 6 months. Of those
agents, 83 percent said management failed to resolve their
safety concern at all, or did nothing to resolve it quickly.
One area where we need Federal action is passenger rage and
assaults, a constant stressor and a danger for all of our
agents. In February 2014 I was the victim of a passenger rage
incident. I was cut on the hand, and I contracted MRSA from the
passenger's bag. I was out of work for 22 days. The FAA is not
doing enough to ensure airlines are implementing the protocols
on passenger rage required by the FAA Reauthorization Act.
Ground service workers are not alone in facing unsafe
conditions. Our partners at the Association of Flight
Attendants-CWA have many of the same issues at the eight
regional carriers they represent. On some regional jets a lone
flight attendant handles up to 50 passengers.
We work together to try to bridge the gap and make this
industry better and safer. There is much that needs to be done.
American Airlines must address the poor lighting at all
stations where this is a problem.
The FAA should establish a ratio of ramp agents per
aircraft, so there is an adequate number of agents working a
flight.
Mr. Larsen. You just--if you want to wrap up in the next 20
seconds----
Ms. Prophete. Oh, I am.
More broadly, American and Piedmont must commit to a
comprehensive approach to improving working conditions at all
stations by investing more in their employees and supporting
robust labor-management safety committees.
I hope that the subcommittee will continue to investigate
the practices of legacy carriers, the impact those practices
have on the operation of regional carriers, and, ultimately, on
workers like me. Thank you.
[Ms. Prophete's prepared statement follows:]
Prepared Statement of Donielle Prophete, Vice President, Communications
Workers of America Local 3645
Chairman Larsen, Ranking Member Graves and distinguished members of
the Aviation Subcommittee, thank you for the opportunity to appear
before you today to discuss the health and safety hazards, concerns,
and challenges facing airline ground service workers. As a front line
worker, this is extremely important to me and my co-workers.
My name is Donielle Prophete. I am the Vice President for the
Communications Workers of America (CWA) Local 3645. I work for Piedmont
Airlines, a wholly owned subsidiary of American Airlines (AA) and I
have been with the Company for 15 years. I am a passenger service agent
cross trained to work as both a gate agent and a ramp agent, so I am
very familiar with all aspects of both jobs. I work at the Charlotte
Douglas International Airport in Charlotte, North Carolina. The
Charlotte station is one of AA's largest, and a very busy hub with more
than 13 million enplaned passengers in the most recent 12 month
period.\1\
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\1\ Bureau of Transportation Statistics. See: https://
www.transtats.bts.gov/carriers.asp?pn=1
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American Airlines is a highly profitable company. Our CEO said in
2017 that he didn't think the airline would ever lose money again.\2\
Where are these profits going? A large percentage are going to the
pockets of wealthy shareholders and executives. Meanwhile, American is
outsourcing passenger service work to third-party contractors, and
relying on regional airlines they've acquired or contracted for an
increasing share of routes to do the same work as direct employees but
for lower wages. This fragmentation of our relationship with the parent
company means we have less bargaining power and less ability to fight
for safe and secure jobs.
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\2\ See https://www.usatoday.com/story/travel/flights/
todayinthesky/2017/09/28/american-airlines-ceo-well-never-lose-money-
again/715467001/
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Safety is a particular concern for me and the focus of my testimony
today. I have participated on the Piedmont System-wide Safety Committee
which is made up of agents like myself from across the Piedmont network
of stations. This Committee serves as a forum for agents to raise
health and safety concerns with the Piedmont Health and Safety Manager
who also attends the meetings.
To provide context for safety challenges we face, I will first
describe the work ramp agents do. Ramp agents perform many different
tasks in the course of our duties and we face many dangers in our work
and work environment. If you have ever looked out of the window while
you were sitting in an airplane waiting to depart or to deplane after
landing, you have seen ramp agents at work. A ramp agent is responsible
for handling baggage, loading and unloading airplanes and/or conveyors.
Ramp agents guide/marshal aircraft to and from the gate. They are
responsible for operating equipment such as belt loaders, tugs, baggage
carts, and airplane push back vehicles. Ramp agents fill the aircraft
with potable water. They operate lavatory vehicles to evacuate airplane
waste and to add a chemical cleaner/deodorant to the toilets on the
plane. Some of the ramp duties may vary depending on which airport you
work at. Some airports would require operations like de-icing with de-
icing chemicals.
Unfortunately, we know from firsthand experience that there can be
dire consequences when safety hazards are not addressed and workers are
not adequately protected. Less than six months ago, on the night of
August 11, 2019, the worst possible tragedy occurred when one of our
co-workers and union brother, Kendrick Hudson, died on the job at the
Charlotte airport. Kendrick was a ramp worker. He was only 24 years
old. He had been working for Piedmont for close to two years.
That night, Kendrick Hudson was driving a tug, which is a vehicle
used to pull a baggage cart. The tarmac was not well lit. A piece of
baggage was on the tarmac, having fallen from another baggage cart
sometime prior. Kendrick did not see the piece of baggage on the ground
until it was too late, likely because the bag was dark, it blended into
the lines on the tarmac where it had fallen, and there was insufficient
lighting. When the tire of the tug he was driving hit the baggage, the
tug flipped over with him inside. Co-workers rushed over to his aid
while waiting for Emergency Medical Services. He died of his injuries.
His death was a shock to all of us and collectively we have mourned
his loss. In trying to make sense of his loss, our union members have
increased our own focus on safety. We do not want anyone else to die.
CWA believes that there were existing safety hazards that played a
role in his death and that his death was likely preventable had the
hazards not existed. We believe the low lighting on the ramp was a
primary, contributing factor in the fatal accident. Low or insufficient
lighting limits visibility, particularly at a distance. That is just
common sense. We feel that if the lighting had been brighter, it is
possible that Kendrick might have seen and been able to avoid the dark
blue bag that fell on the black line on the dark tarmac.
Our local union and agents had repeatedly raised concerns about the
lighting with Piedmont management in the past, before Kendrick's
fatality. The insufficient lighting hazard had been raised at various,
``Roundtable'' meetings over the past two years that Piedmont set up to
hear about agents' concerns. The insufficient lighting hazard had also
been raised by me and other members of my local union's Executive Board
at our monthly, departmental meetings with Piedmont management. We have
urged management to address the poor lighting in our work areas and to
advocate with the City of Charlotte for increased lighting in dark
areas under the City's jurisdiction where workers must carry out their
work operations. The site of Kendrick Hudson's fatal accident is not
the only area with insufficient lighting that impacts our safety. Ramp
agents can cover a lot of ground working at the gate, around the
planes, and driving to other gates and locations. As an example, there
is a large area from gates E31 to E38, so dark and dangerous to drive
around at night without any roadway lines that it has earned the
infamous nickname of ``Death Valley'' by workers. This should not be.
We recognize that there are certain restrictions in airports about
lighting so as not to interfere with air traffic control. However, we
believe more can be done to illuminate work areas to make them safe.
The second factor we believe contributed to Kendrick Hudson's death
was the piece of baggage that had fallen out of another baggage cart
and left on the tarmac. It is not unusual for baggage to fall from a
baggage cart. This can occur if the closures on the cart's curtain
meant to contain the baggage are missing, broken, or not secured. When
baggage does fall onto the ground, sometimes the pressure to quickly
transport baggage from one point to another can result in delays in
retrieving fallen baggage, presenting a hazard. We do not know the
reason why the baggage had fallen in this case, but if the baggage had
not been on the ground, Kendrick's accident would not have occurred.
The union also has concerns about the stability of the tugs, like
the one Kendrick Hudson was driving. Had the tug he was driving been
more stable, like the newer models seem to be, it may not have flipped
over once it hit the baggage. I'd like to note that Kendrick Hudson's
accident was not the first time a tug had flipped over in the recent
past. On June 6, 2017 a tug flipped over with two ramp agents inside,
injuring both. One of the agents was out of work for 136 days as a
result of her injuries. The cause was found to be missing lug nuts on
the vehicle. A ramp agent would have no way of knowing about this kind
of mechanical defect even when conducting a basic walkaround and safety
check of a vehicle.
The North Carolina Department of Labor (NCDOL) has conducted a
fatality investigation. I have participated in the investigation, as
have other members of CWA Local 3645. Management has participated, too,
of course. Our wish is that the investigation will result in much
needed improvements to make the ramp itself and work on the ramp safer
and to prevent anyone else from dying on the job.
There are many other safety and health hazards we face at work
besides those that I have already mentioned. Some of these safety and
health hazards affect ramp agents and gate agents. The range of safety
and health hazards include, but are not limited to: passenger rage/
assaults by passengers; defective or broken equipment and vehicles;
ergonomic risk factors, such as excessive force required to lift/push/
pull baggage and equipment, repetitive motion, and awkward/strained
postures and/or maintaining static postures for long periods; chemical
exposures; biological hazards and infectious diseases; falls from
heights; heat stress during the warmer months and cold stress during
the winter; and various physical hazards.
Further compounding these safety and health concerns are the
pressures we operate under because of inadequate investment by our
parent company, American Airlines. These include: Insufficient or
ineffective safety training; widespread understaffing; a very high
stress environment; constant time pressure demands; mandatory overtime;
high turnover; and fear of retaliation by management for raising safety
concerns. Workers at Piedmont are paid low wages that are substantially
less than agents employed directly by American mainline, forcing many
to work long hours, take additional jobs and rely on government
assistance to get by. Further, a majority of Piedmont employees are
part-time, which equates to fewer benefits and less consistent
schedules.
A review of the 2018 OSHA Form 300 Logs of Work-related Injuries
and Illnesses and OSHA 300A Annual Summaries of Work-related Injuries
and Illnesses for Piedmont stations with CWA represented workers across
the country revealed a total of 612 injuries and illnesses. The most
frequent injuries by type, according to the descriptions listed on the
OSHA 300 Logs were: sprains and strains (358 cases), , bruising (108
cases), lacerations (31 cases) and fractures (24 cases). The most
frequent causes of injuries were ergonomic, including lifting,
overexertion, pushing/pulling, twisting, and strains (252 cases), falls
(95 cases), struck by object being handled (145), caught in object
(32), and collision with vehicle (13). The calculated incidence rates
of injuries and illnesses varied greatly by station. The overall
incidence rate for all of the stations for 2018 was 11.06 incidents for
every 100 full-time-equivalent workers. The incidence rate for
Charlotte (CLT) was 13.58 compared to the second largest Piedmont hub
in Philadelphia, PA (PHL) with an incidence rate of 7.02. Several
stations with over 50 employees had extremely high incidence rates.
These included Greenville/Spartanburg in SC (GSP) with an incidence
rate of 33.46, Wilmington, NC (ILM) with an incidence rate of 38.34,
Norfolk, VA (ORF) with an incidence rate of 30.63, Portland, ME (PWM)
with an incidence rate of 26.33, Richmond, VA (RIC) with an incidence
rate of 28.14, and McGhee Tyson airport (TYS) in Tennessee with an
incidence rate of 34.48.
Last month our union, CWA, conducted a survey focused on safety and
health issues with nearly 500 Piedmont agents across the country. Some
of the key findings of our survey are as follows:
The survey revealed that 94% of agents reported that safety is a
very serious or a somewhat serious problem at their station. One
central factor is the excessive time pressure we face. The pressure to
turn planes on time creates a stressful environment where 69% of agents
fear disciplinary action for missing deadlines.
Inadequate staffing is also a key concern--74% of agents nationally
reported they feel rushed to do their jobs because of understaffing.
Often we have to operate with fewer agents than are truly needed to get
the job done. Why does this matter? Turning planes on time with
inadequate staff may force agents to cut corners or skip important
safety steps. Regional flights will often have only one gate agent to
board a flight. You have to board the flight, watch the door, push
wheelchairs, fix tickets, handle angry passengers--all in 30 minutes.
Among the agents surveyed at Charlotte, nearly 60% of agents who work
inside the airport said that one of their top safety concerns is gaps
in security at the gate, including having to leave secure areas
unattended when understaffed.
There are no clear and concise rules for regional operations
regarding how many agents it takes to work particular aircrafts on the
ramp. So, we are subjected to struggling with 2 or 3 agents working
planes that would normally require 4 to 5 agents. Another problem with
staffing is that Piedmont counts management in the numbers of the
workforce on duty, but the managers in many cases don't come out to
help with the operation. That inevitably leaves us short. Further,
Piedmont has a very high turnover rate. The pay doesn't support having
senior agents around. What that means is there is a lack of the
seniority and knowledge of the more seasoned agents.
Understaffing leads to missed breaks and long periods of standing.
According to the survey, more than 50% of agents nationally say that
understaffing causes them to miss mandated breaks. At Charlotte in
particular, 91% of gate and ticket agents reported they are forced to
stand for long periods of time, increasing the likelihood of
musculoskeletal disorders.
Returning to the ramp, 83% of ramp agents surveyed at Charlotte
reported insufficient lighting on the tarmac and 96% said that painted
lines on the tarmac are poorly defined and hard to distinguish. This
was reported in December, more than three months after Kendrick
Hudson's death.
We also have major concerns about defective equipment and vehicles.
Regionals like Piedmont seem to receive American Airlines' cast off,
hand-me-down equipment. A lot of vehicles and equipment we work with
are very, very old, perhaps decades old. More than half of agents
nationally said they work with defective equipment in all or most of
their shifts.
Our managers should be addressing these concerns when we raise
them, and we do raise them. At my station, 67% of the surveyed agents
said they had told management about a safety concern in the past six
months. Of those agents who reported safety concerns, 83% said
management failed to resolve their safety concern at all or did not
resolve it quickly. There's something very wrong with this picture.
While this survey was illuminating, we need management to partner
with us to document and address the ongoing safety issues facing me and
my coworkers.
One area where we need more partnership is passenger rage and
assaults, which are a constant stressor and danger for passenger
service agents. Many agents have been assaulted and some have suffered
serious injuries as a result. Addressing passenger rage is a priority
for our union. Angry customers regularly take out their anger on the
agents with verbal and physical assaults. The most common causes of
passenger rage incidents against passenger service agents are flight
delays and flight cancellations. Other contributing factors include
overbooking of flights by the carriers, boarding procedures that favor
certain customers and leave those boarding in the last groups without
adequate overhead storage space for carry-ons. These are things that
passenger service agents have no control over, but, as the face of the
airline, agents receive the brunt of passenger frustration and rage.
I cannot say how many total assaults by passengers have occurred at
Charlotte or across the Piedmont footprint because that information has
not been shared by the airline. It seems to be a well-guarded secret.
Even the Piedmont OSHA 300 Logs of Injuries and Illnesses do not
include ``passenger assault'' in the description of recordable injuries
that were the result of an assault. In February 2014, I was the victim
of a passenger rage incident. The passenger had deplaned outside,
walked on the tarmac and entered the terminal through the security door
before she remembered she had mistakenly left her valeted, checked bag
outside the plane where it had been unloaded. For security reasons,
passengers are not permitted to walk back out onto the tarmac through
the secured door once they come inside the terminal. The passenger was
very upset at the agent who was guarding the security door who would
not permit the passenger to go back outside. To diffuse the situation,
I went outside to retrieve the passenger's bag for her. I still had my
hand on the bag when the passenger aggressively grabbed the bag from
me, cursing at me, and cut my hand in the process. I contracted MRSA
(Methicillin-resistant Staphylococcus aureus) which was transmitted
from the passenger's bag to the cut she had inflicted on my hand and I
was out of work for 22 days. My injury was listed on the OSHA 300 Log
as a ``pax grabbed carry on bag out of ee's hand, causing left hand to
swell'' injury.
The Federal Aviation Administration (FAA) Reauthorization Act of
2018 required airlines to create an Employee Assault Prevention and
Response Plan (EAPRP) related to the customer service agents in
consultation with the labor union representing such agents. We do not
believe that the FAA is doing enough to ensure airlines are
implementing the required protocols. Enforcement is lacking.
Agents also experience challenges in bringing in law enforcement
quickly enough to get witness statements and ensure that these cases
are taken seriously and moved through the appropriate prosecutorial
channels, including the use of federal law to bring felony charges when
appropriate.
Ground service workers at regional airlines are not alone in facing
unequal treatment and unsafe conditions. Our partners at the
Association of Flight Attendants-CWA have many of the same issues we do
at the eight regional carriers they represent--lower wages,
understaffing and other inequities. On some regional jets, a lone
flight attendant handles up to 50 passengers. We work together to try
to bridge the gap and make this industry better for every aviation
worker.
I will conclude my testimony with some thoughts about improving the
health and safety and overall working conditions of passenger service
agents.
AA and Piedmont must address the poor lighting in the largest hub
station (CLT) so we don't have another agent lose their life at work.
Improvements in lighting on the ground should be made at all stations
where insufficient lighting is a problem.
The ratio of ramp agents per aircraft should be increased so there
is an adequate number of agents working a flight to be safe and enable
us to do our jobs completely and thoroughly without the need to rush or
cut corners. Adequate staffing ratios should take the type of aircraft
into account. Agents at regional airports who service mainline planes,
like an Airbus, should have the support of more agents than the number
needed for a much smaller 50 or 90-seater plane.
On the issue of passenger rage, I would reiterate that our
passenger service agents would like to see greater engagement by the
FAA to follow through on its obligation to enforce the provisions in
the FAA Reauthorization of 2018. We would ask the Aviation Subcommittee
members to stay engaged on this issue and follow up with the agency to
ensure this process is moving forward more expeditiously than it has
been.
Passenger service agents see a need for greater public awareness
about the legal protections that do exist. We would like to see all
carriers prominently display visible signage with strong language
informing passengers that it is illegal to assault passenger service
agents and that the passenger can be arrested, charged, and prosecuted
for assaults.
More broadly, AA/Piedmont must commit to a comprehensive approach
to improve working conditions at all stations to prevent other
fatalities, injuries, and illnesses. To accomplish this, American must
invest more in the health and safety of its employees by:
Providing a safe physical work environment;
Ensuring that employees have quality training to work
safely;
Reducing workplace stressors to improve job quality;
Addressing work organization issues such as
understaffing, excessive workloads, and unpredictable work schedules
that increase the risk of injury and impact health;
Encouraging employees to report safety concerns without
fear of retaliation; and
Ensuring employees have a voice on the job through labor-
management health and safety committees that are empowered to address
hazards on an on-going basis.
I hope that my testimony has provided you with a deeper
understanding of the nature of our work, the health and safety hazards
we face on a daily basis, and the challenges we face working for a
regional airline. I hope that the Aviation Subcommittee will continue
to investigate the practices of the legacy air carriers, the impact
those practices have on the operations of the regional carriers and
ultimately, on workers like me. I hope that these efforts will lead to
improved working conditions for all ground service and other passenger
service agents.
Thank you.
Mr. Larsen. Thank you. I will note, since we haven't had a
hearing like this in at least 32 years----
[Laughter.]
Mr. Larsen. I mean, I--you know.
Ms. Prophete. Thank you.
Mr. Larsen. I will give you a gavel at 5 minutes, but maybe
5 minutes and 20 you ought to----
Ms. Prophete. OK.
Mr. Larsen [continuing]. Wrap it. For all of you. For all
of you, all right?
So next up, I want to recognize Mr. Esteban Barrios from
Service Employees International Union Local 32BJ.
And go ahead and pull that. That box moves towards you if
you want to--the whole box. That is--close to the mic, as well.
You are recognized for 5 minutes. Go right--point that
microphone right at your mouth.
Mr. Barrios. My name is Esteban Barrios.
Mr. Larsen. There you go.
Mr. Barrios. I work at the Miami International Airport. I
am here to talk about how Eulen America, an airline
subcontractor for Delta, is putting workers' health, safety,
and life at risk.
Eulen America is a multimillion-dollar company owned by one
of the richest families in Spain. Over there the majority of
their workers are unionized. Over here, Eulen has a bad record
of mistreating their workers, including treating and
retaliating against those who are trying to improve their job.
I am a ramp agent for Eulen. I load and unload the bags
onto Delta planes. It is a very dangerous job. We are all out
in the sun, in the hot sun all day, working with heavy
equipment right beside the planes. Eulen does not give us
enough personnel. Sometimes I am lifting almost 300 bags a day
by myself. My whole body hurts. We don't have paid sick days,
so we can't take a day off to get better. So we just take
painkillers and try to get through the day.
I recently fractured my fingers at work. Many of my
coworkers have also had injuries. I know someone whose foot was
run over by a luggage tow. Someone else got a herniated disc
after falling on the job, and the next day lifting hundreds of
bags. Imagine running from plane to plane, lifting hundreds of
bags in the Miami heat. We don't have easy access to drinking
water, and sometimes we feel physically sick from lack of
water.
Eulen doesn't treat us as human beings. They think we are
machines. When passengers get frustrated that they don't get
their luggage on time, I want people to understand that this is
why. We are doing our best, but these are the horrible
conditions we are working under.
I am asked myself, ``Why do airlines like Delta, who make
billions in profit, allow this to happen?''
Recently OSHA fined Eulen over serious violations that
could cause death and serious injuries. That included ramp
workers like me being exposed to extreme heat that could cause
heat stroke, or even death. OSHA found roach infestation.
Workers report that roaches are inside trucks that transport
the cabin cleaners and carry supplies for planes. OSHA also
found that Eulen had not offered cabin cleaners hepatitis B
vaccines or proper training, even though they are supposed to.
But these problems do not just stop at Miami. My colleague
from Orlando Airport, Yolanda Rodriguez, is here today because
she was knocked unconscious when she and several coworkers were
involved in an accident in a Eulen vehicle that had no
seatbelt. Yolanda still suffers from dizziness, and has trouble
walking. She relies on her sister to bathe and feed her.
OSHA is investigating Eulen over safety concerns, including
allegation that Eulen failed to provide gloves and make
hepatitis B vaccines available, even though workers can come in
contact with possible blood-borne pathogens on the job. In New
York, OSHA is investigating Eulen at JFK after a woman who was
8 months pregnant fell onto a conveyor belt, and was seriously
injured.
And just recently Eulen fired three union activists, as
well. I am speaking out not just for myself, but for all my
coworkers who are too scared to speak out because they can't
afford to lose their job.
We deserve better conditions at work, but we also want our
airports to be a safe place for passengers. I am speaking out.
OK.
The bottom line is how is Eulen's behavior acceptable?
Something must be done. On behalf of the thousands of men and
women working for Eulen, please take action to help end the
suffering and ensuring that Delta Airlines only work with
responsible contractors.
Thank you.
[Mr. Barrios' prepared statement follows:]
Prepared Statement of Esteban Barrios, Ramp Worker, Miami International
Airport, testifying on behalf of Service Employees International Union
Local 32BJ
My name is Esteban Barrios and I work at the Miami International
Airport. I'm here to talk about how Eulen America, an airline
subcontractor for Delta, is putting workers health, safety and lives at
risk.
Eulen America is a multi-million dollar multinational company,
owned by one of the richest families in Spain. Over there, the vast
majority of their workers are unionized. Over here, Eulen has a bad
record of mistreating their workers, including threatening and
retaliating against those who are trying to improve their jobs and
protect themselves through a union--a right that is guaranteed in this
country.
I am a ramp worker for Eulen. I load and unload the bags onto Delta
planes. It's a very dangerous job. We're out in the hot sun all day,
working with heavy equipment, right beside the planes.
We're supposed to unload the luggage and get it to baggage claim in
only 20 minutes. When I first started working at the airport, we used
to have 5 people per shift. But Eulen keeps cutting down the number of
workers and now we're down to 3 or 4. Sometimes I'm lifting almost 300
bags a day by myself. My whole body hurts. My hand is constantly in
pain. But, what can we do? We don't have sick days so we can't take a
day off to get better. So we just take pain killers and try to get
through the day.
I recently fractured my fingers at work. Many of my co-workers have
also had injuries. I know someone whose foot was run over by a luggage
tow. I know someone else who got a herniated disk after falling on the
job, and the next day lifting more than 500 bags in a day.
We have to do flights one right after the other. Imagine running
from plane to plane, lifting hundreds of bags in the Miami heat. We
don't have easy access to drinking water and sometimes we feel
physically sick from being dehydrated. The noise from the planes is
deafening.
I was at a roundtable discussion with Congresswomen Frederica
Wilson last year where I talked about how sometimes the equipment
doesn't work, and how sometimes the vehicles break down or don't have
seatbelts--which makes our job even more dangerous. One time I was
driving a luggage tow and the emergency brakes failed in the rain. I
slid and did a 360 on the ramp. I could have hit a plane.
Eulen doesn't treat us like human beings. They think we're
machines.
When passengers get frustrated that they don't get their luggage on
time, I want people to understand that this is why. We are doing our
best, but these are the horrible conditions we're working under at
Eulen.
I ask myself, why do airlines like Delta, who make billions in
profit allow this to happen?
Recently OSHA gave Eulen one of the biggest fines at the airport in
recent history for air transportation support services over serious
violations that could cause death or serious injuries. These include
ramp workers like me being exposed to extreme heat that could cause
heat stroke or even death. OSHA found roach infestations. Workers
report that roaches are inside trucks that transport the cabin cleaners
and carry supplies for planes. OSHA also found that Eulen had not
offered cabin cleaners hepatitis B vaccines or proper training, even
though they are exposed to bloodborne pathogens. Eulen also failed to
provide effective information and training for employees who were
required to work with certain hazardous chemicals.
But these problems don't just stop at Miami. My colleague from the
Orlando Airport, Yolanda Rodriguez is here today because she was
knocked unconscious, terrifying her coworkers, when she and several
coworkers were involved in an accident in a Eulen vehicle that had no
seatbelts. Yolanda still suffers from dizziness and has trouble
walking. She has to rely on her sister to bathe and feed her.
In Fort Lauderdale, OSHA is investigating Eulen over safety
concerns, including allegations that Eulen failed to provide gloves and
make the Hepatitis B vaccine available, even though workers can come
into contact with possible blood borne pathogens on the job. Workers
have also filed complaints over unpaid wages with Broward County, some
of which were settled and some are still pending. Eulen was also
accused in two separate cases by the National Labor Relations Board of
firing two employees in retaliation over their union organizing
activity. Eulen agreed to settle one by paying the fired worker $21,000
in back wages, while the other case is pending appeal. And finally,
Eulen workers at Fort Lauderdale went on strike for the 6th time last
September, after the company fired three union activists for dubious
reasons.
In New York, OSHA is investigating Eulen at JFK after a woman who
was 8 months pregnant, fell onto a conveyer belt and was seriously
injured. The New York City Department of Consumer and Worker Protection
is also investigating Eulen for complaints of paid sick leave theft and
for not paying workers their uniform allowance as required by law. And
just recently, Eulen fired three union activists as well.
You should also know that Eulen workers live in neighborhoods where
many people have to rely on public assistance just to get by. We work
long and hard--yet we can't survive without help from government for
basic human needs.
It's in everyone's best interest for workers to have family
sustaining jobs, where we can provide for our families in a safe
working environment.
I'm speaking out, not just for myself, but for all my coworkers who
are too scared to speak out because they can't afford to lose their
jobs through retribution. We desperately need and deserve better
conditions at work, but we also want our airports to be a safe place
for passengers. It's not good for us to be bullied into staying quiet
when there are problems. We shouldn't be punished for trying to improve
the airport.
Throughout the country, subcontracted airline workers have risen up
and won wage increases, better job protections, and union
representation. As a result many airline contractors have responded by
working with us to raise standards at our nation's airports.
Eulen remains the outlier and the airlines that hire them are the
enablers.
The bottom line is--how is Eulen's behavior acceptable? Something
must be done. On behalf of the thousands of men and women working for
Eulen, please take action to help end this suffering by ensuring that
Delta Airlines only work with responsible contractors who don't abuse
workers or exacerbate our poverty rate while leaving the government and
taxpayers with the bill.
Additional information on working conditions for contracted airport
service workers
Low Wages and Benefits
Over the last few years, SEIU has been able to win enhanced wages
and benefits at several airports for contracted airport services
workers across the country. For example, in New York City's airports
(JFK, LGA, and EWR), wages for airport workers will rise to $19/hour by
2023.\1\ However, contracted airport services jobs are mostly low-wage
jobs. In a 2017 Economic Roundtable report, nearly half of all U.S.
airport workers working in the classifications that SEIU organizes and
represents are paid less than $15 per hour.\2\ Thirty seven percent of
the airport labor force, have wages under $15. At $10.73, cabin
cleaners had one of the lowest median wages in 2017.\3\
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\1\ Information from the Port Authority of New York and New
Jersey's website, available at https://old.panynj.gov/press-room/press-
item.cfm?headLine_id=2997.
\2\ June 2017 report released by the Economic Roundtable, ``Flying
Right: Giving U.S. Airport Workers a Lift,'' at p. 3, available at
https://economicrt.org/wp-content/uploads/2017/06/
Flying_Right_2017.pdf.
\3\ June 2017 report released by the Economic Roundtable, ``Flying
Right: Giving U.S. Airport Workers a Lift,'' at p. 3, available at
https://economicrt.org/wp-content/uploads/2017/06/
Flying_Right_2017.pdf.
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Further, the report states that low wages and sometimes limited
work hours put some U.S. airport workers into economic distress. Over
46,000 U.S. airport workers and their families live below the poverty
threshold; they make up seven percent of the airport labor force.\4\
Over 194,000 U.S. airport workers received public assistance benefits;
the largest program being Medicaid, followed by food stamps and cash
assistance. A total of $1.2 billion in public assistance are provided
each year for low-income airport workers. In addition thirty-seven
percent are rent-burdened.\5\
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\4\ June 2017 report released by the Economic Roundtable, ``Flying
Right: Giving U.S. Airport Workers a Lift,'' at p. 3, available at
https://economicrt.org/wp-content/uploads/2017/06/
Flying_Right_2017.pdf.
\5\ June 2017 report released by the Economic Roundtable, ``Flying
Right: Giving U.S. Airport Workers a Lift,'' at p. 3, available at
https://economicrt.org/wp-content/uploads/2017/06/
Flying_Right_2017.pdf.
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In addition, airport workers generally do not have meaningful and/
or affordable benefits. For example, according to an informal survey of
32BJ members at LaGuardia and JFK, 18% of workers employed at those
airports workers are uninsured.\6\ The remaining workers were covered
by Medicaid (28%), Medicare (17%), NY Essential Plan (15%),
``Obamacare'' (4%) \7\, their spouse/domestic partner's employer
benefits (4%), or other health insurance options (5%). Only 7% of these
workers received health insurance through their employer.\8\
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\6\ SEIU conducted an in-person and online survey of its members
employed at JFK and LGA from December 2018 until May 2019. 801 32BJ
members chose to respond to the survey. Respondents were asked, ``How
do you currently receive health insurance?'' The survey method was not
scientifically rigorous.
\7\ ``Obamacare'' refers to a Qualified Health Plan that a person
purchases through the New York State of Health Marketplace.
\8\ Informal Survey referenced in Footnote 29. In addition, SEIU
32BJ has requested participation rates from airport service
contractors. As of December 17, 2019, only one had complied fully with
this request.
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Airport Workers Health and Safety Problems
Airport services workers at airports across the country face a
number of health and safety hazards. Across the country, the
Occupational Health and Safety Administration (OSHA) has repeatedly
found multiple contractors in this industry guilty of violations
against workers. From October 2018 to September 2019, Federal OSHA
cited companies that provided airport service work a total of 88
violations and penalized these companies for $221,563.\9\ To put this
figure in context, statutory and budgetary constraints have resulted in
OSHA routinely agreeing to reduce penalties as part of informal
settlement agreements in exchange for an employer's promise to fix
hazardous conditions immediately.\10\ During this period, 164,992 cases
closed; approximately 40% of these cases closed with no penalties
assessed. On average, the current penalties assessed for cases during
this period amounted to only $1,968.\11\
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\9\ Data for NAICS Code: 4881 Support Activities for Air
Transportation Workers available at U.S. Occupational Safety and Health
Administration at https://www.osha.gov/pls/imis/
citedstandard.naics?p_esize=&p_state=FEFederal&p_naics=4881.
\10\ Center for Progressive Reform, ``OSHA's Discount on Danger:
OSHA Should Revise Its Informal Settlement Policies to Maximize the
Deterrent Value of Citations,'' June 2016 Report, at p. 1. available at
http://progressivereform.org/articles/OSHA_Discount_on_
Danger_Report.pdf.
\11\ Data from an analysis of OSHA penalties filed between October
2018 and September 2019.
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The standards that were violated in this industry include but are
not exclusive to those related to respiratory protection, hazard
communication, bloodborne pathogens, powered industrial trucks, fall
protection and falling object protection, occupational noise exposure,
storage and handling of liquefied petroleum gases, and air
contaminants.\12\
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\12\ Data for NAICS Code: 4881 Support Activities for Air
Transportation Workers available at U.S. Occupational Safety and Health
Administration at https://www.osha.gov/pls/imis/
citedstandard.naics?p_esize=&p_state=FEFederal&p_naics=4881.
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Higher Incident Rates of Injuries and Illness for Airport
Support Workers than for Workers in Other
Industries
According to the Bureau of Labor Statistics, the 2018 incident
rates of recorded cases of occupational injuries and illnesses for
airport support workers is 29% higher than explosives manufacturing,
63% higher than apparel manufacturing, 121% higher than in mining,
quarrying, and oil and gas extraction, and 181% higher than electric
power generation.\13\
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\13\ U.S. Department of Labor, Bureau of Labor Statistics, Industry
Illness and Injury Data, ``Incidence rates--detailed industry level--
2018'' https://www.bls.gov/iif/oshwc/osh/os/summ1_00_2018.htm. NAICS
codes 4881--support activities for air transportation, 32592--
explosives manufacturing, 315--apparel manufacturing, 21--mining,
quarrying, and oil and gas extraction, and 22111--electric power
generation.
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U.S. GAO Finds that Airport Workers are At Risk of Exposure
to Communicable Diseases
In December 2015, the U.S. General Accountability Office (GAO)
released a report in response to a Congressional request for a review
of how prepared the US aviation system is to respond to potential
communicable disease threats from abroad such as the Ebola
epidemic.\14\ The GAO interviewed aviation-service employees--including
airport cleaning, aircraft cleaning, and passenger service employees--
who expressed concern that they did not receive adequate communicable
disease training and report challenges accessing appropriate personal
protective equipment, cleaning equipment, and cleaning supplies.\15\
The GAO found that inadequate training, equipment, and supplies could
lead to employee exposures to pathogens that could in turn result in
infections.\16\
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\14\ GAO-16-127, released by the U.S. General Accountability Office
in December 2015, ``Air Travel and Communicable Diseases: Comprehensive
Federal Plan Needed for U.S. Aviation System's Preparedness,'' https://
www.gao.gov/assets/680/674224.pdf.
\15\ GAO-16-127, released by the U.S. General Accountability Office
in December 2015, ``Air Travel and Communicable Diseases: Comprehensive
Federal Plan Needed for U.S. Aviation System's Preparedness,'' at p.
38, available at https://www.gao.gov/assets/680/674224.pdf.
\16\ GAO-16-127, released by the U.S. General Accountability Office
in December 2015, ``Air Travel and Communicable Diseases: Comprehensive
Federal Plan Needed for U.S. Aviation System's Preparedness,'' at p.
38, available at https://www.gao.gov/assets/680/674224.pdf.
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U.S. GAO Finds that Ramp Work is Dangerous Work
In November 2007, the U.S. General Accountability Office issued a
report on ramp safety that showed in the five previous years, fatal
airport ramp accidents were happening in the US at a rate of about six
per year. The majority of these fatalities were ramp workers. Airlines
and airports typically control the ramp areas using their own policies
and procedures. As a result, the GAO reported that efforts to improve
safety in ramp areas was hindered by a lack of complete accident data
and standards for ground handling.\17\
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\17\ Aviation Runway and Ramp Safety, Sustained Efforts to Address
Leadership, Technology and Other Challenges Needed to Reduce Accidents
and Incidents, US General Accountability Office, 2007, available at
https://www.gao.gov/assets/270/269675.pdf.
---------------------------------------------------------------------------
Highlights of Contractors With Health and Safety Issues
Below are just a handful of examples of contractors that OSHA had
cited recently for serious violations. Despite these serious
violations, these companies are still operating at our nation's major
airports.
eulen america
Since 2012, the Occupational Safety and Health Administration has
cited Eulen America, a major contractor for American Airlines and Delta
Airlines, for multiple violations of federal workplace health and
safety standards at Florida Airports.
In April 2019, U.S. Congresswomen Donna Shalala and Frederica
Wilson held a Congressional Roundtable at the Miami airport to hear
directly from workers after an alarming expose ran in a local TV
station. At the roundtable workers testified regarding injuries
sustained at work, vehicles in hazardous conditions, and trucks that
transport workers and carry supplies for planes being roach infested.
Subsequently, as part of a referral, and formal complaint filed by
workers, OSHA investigated Eulen at Miami International Airport and
issued eight citations as part of two inspections at MIA with an
initial total fine amount of $77,898 ($55,166 and $22,732), Eulen
entered an informal settlement agreement with OSHA, and penalties were
lowered to a total of $46,739 ($33,100 and $13,639).\18\ The initial
citations included: \19\
---------------------------------------------------------------------------
\18\ https://www.osha.gov/pls/imis/
establishment.inspection_detail?id=1396157.015 and https://
www.osha.gov/pls/imis/establishment.inspection_detail?id=1403303.015,
accessed 11/18/19
\19\ OSHA Inspection 1396157.015 and 1403303.015
---------------------------------------------------------------------------
A driver was exposed to getting his fingers caught on the
wire mesh that was on the back of the driver's seat as the driver
raised the platform in the back of the truck.
Workers were exposed to fall hazards after lowering a
guardrail on the side of the platform to gain access to the interior of
a plane.
Eulen was found to have violated OSHA's General Duty
Clause which requires employers to provide a place of employment free
from recognized hazards that were causing or likely to cause death or
serious physical harm to employees. OSHA found that ramp and baggage
handlers which engaged in heavy material handling were exposed to
temperature levels that may lead to development of serious heat-related
illnesses such as, but not limited to, heat cramps, heat exhaustion,
heat stroke and death.
Eulen did not administer a continuing, effective hearing
conservation program.
Eulen did not have an effective extermination control
program and workers were exposed to sanitation health hazards from
insects including, but not limited to an infestation of cockroaches.
Eulen did not develop and implement a written exposure
control plan for employees who are exposed to occupational bloodborne
pathogens and other potentially infectious materials, when handling
sharps and cleaning up blood. Eulen did not provide training or make
Hepatitis B vaccines available within 10 working days of initial
assignment to all employees with occupational exposure.
Eulen did not provide information for workers voluntarily
wearing N95 filtering facepiece respirators. Per OSHA if a respirator
is used improperly or not kept clean, the respirator itself can become
a hazard to the worker.\20\
---------------------------------------------------------------------------
\20\ OSHA Standard 1910.134 Appendix D, https://www.osha.gov/laws-
regs/regulations/standardnumber/1910/1910.134AppD
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Eulen did not maintain copies of required safety data
sheets for certain hazardous materials, and did not provide effective
information and training for employees who were required to work with
certain hazardous chemicals.
Furthermore, OSHA found hazards inside high lift trucks which
included tripping hazards due to the rear cab being full of blankets,
trucks not having functional seatbelts and inspection sheets not being
accurate, OSHA did not cite Eulen for these hazards.\21\ As of December
17, 2019, the case statuses on the OSHA inspection detail website is
noted as ``pending abatement of violations, penalty payment plan in
place'' \22\ for one of the inspections and closed for the other
inspection.\23\
---------------------------------------------------------------------------
\21\ OSHA Letter to Eulen Re: Inspection 1403303, 10/25/19
\22\ https://www.osha.gov/pls/imis/
establishment.inspection_detail?id=1396157.015, accessed 12/17/19
\23\ https://www.osha.gov/pls/imis/
establishment.inspection_detail?id=1403303.015, accessed 12/17/19
---------------------------------------------------------------------------
In response to the results of the MIA investigations, Eulen stated
that it could not be more pleased with the results.\24\ However,
according to the Department of Labor Enforcement Database data
extracted on November 23, 2019, when comparing Eulen's MIA inspection
that totaled $33,100 in settled penalties with inspections of all other
companies coded under the Support Activities for Air Transportation
since 2014 to November 2019, Eulen's current penalty amount ranked as
the highest in Florida and the 9th nationwide.\25\
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\24\ Eulen America Letter to Lester Sola Miami International
Airport CEO and Director, Dated November 22, 2019
\25\ Analysis of Department of Labor Enforcement Database data
extracted November 23, 2019, for OSHA inspection with penalty amounts
over $30,000 for 2014--November 2019, NAICS Code 4881--Support
Activities for Air Transportation Industry.
---------------------------------------------------------------------------
Eulen currently has two open OSHA investigations at Fort
Lauderdale-Hollywood International Airport and John F. Kennedy
International Airport.
The attached maps show maps of major cities where Eulen operates
clearly shows that Eulen employees live in neighborhoods with high
levels of poverty where high numbers of people use public assistance
programs.
mcgee air services
In March 2018, McGee Air Services a wholly-owned subsidiary of
Alaska Airlines,\26\ In March, 2018, McGee Air Services was fined
$24,000 in connection with four serious violations of Washington State
health and safety laws for their operations at Seattle Tacoma
International Airport.\27\ The Washington State Department of Labor &
Industries noted that McGee ``ramp agents were not provided safety
devices, safeguards, work practices, processes, and the means to make
the workplace safe from hazards.'' \28\ The state also documented
several cases in which baggage carts used by McGee Air Services ``were
not kept in safe and operable condition.'' \29\
---------------------------------------------------------------------------
\26\ https://www.mcgeeairservices.com/about-us.html
\27\ Summary of Assessed Penalties Due, Inspection: 317946438, Page
2 of PDF received
\28\ Violation 1 Item 1a, WAC 296-800-11010, Citation and Notice of
Assessment, Inspection 317946438, page 4 of PDF received from L&I.
\29\ Violation 1 Item 3 WAC 296-800-14025, Citation and Notice of
Assessment, Inspection 317946438, page 11 of PDF received from L&I.
---------------------------------------------------------------------------
Because McGee failed to provide information requested by State
investigators, the State's Attorney General Office was forced to
intervene and threaten to subpoena the records before they were
produced.\30\
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\30\ From inspector's notes, Enforcement Case File, Page 24 of PDF
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menzies
In July 2019, Maryland Occupational Safety and Health (MOSH) issued
a Citation and Notification of Penalty to Menzies, a cargo, fueling,
and ground-handling contractor that services all airlines at BWI,
including American Airlines and Delta Airlines, for citations
concerning five OSHA standards. Three of these initial citations were
of a ``serious'' nature and the proposed penalty was $5,400.\31\ MOSH
initially issued citations alleging that Menzies did not train its
employees in procedures that would minimize fall hazards in the work
area; \32\ protective equipment was not provided where there were
hazards capable of causing injury and impairment; \33\ employees
guardrail systems, safety net systems, or personal fall arrest systems
were not ensured for workers who worked on a walking-working surface
with an unprotected side or edge; \34\ portable fire extinguishers were
not provided for workers; \35\ and nameplates or markings for powered
industrial trucks were not in place.\36\
---------------------------------------------------------------------------
\31\ MOSH Inspection of Menzies, Inspection Number 1396019. Case
No. G4961-028,19. Citation Issuance Date 07/11/2019. Available at
https://www.osha.gov/pls/imis/
establishment.inspection_detail?id=1396019.015.
\32\ Maryland Occupational Safety and Health, Citation and
Notification of Penalty. Inspection Number 1396019. Case No. G4961-
028,19 No., pg. 6
\33\ Ibid., pg. 7
\34\ Ibid., pg. 5
\35\ Ibid., pg. 7
\36\ Ibid., pg. 8
---------------------------------------------------------------------------
Menzies later entered into an informal settlement agreement with
MOSH and the initial citations for lack of protective equipment where
there were hazards capable of causing injury and impairment, personal
fall arrest systems, and nameplates and markings for powered industrial
trucks were dropped as part of the settlement. The remaining three
citations in the settlement consisted of two serious and one non-
serious. Penalties for one serious violation were lowered to $1,701 and
penalties for the additional serious violation and a non-serious
violation remained at $0.\37\
---------------------------------------------------------------------------
\37\ MOSH Inspection of Menzies, Inspection Number 1396019. Case
No. G4961-028,19. Case closed in September 16, 2019. Available at
https://www.osha.gov/pls/imis/
establishment.inspection_detail?id=1396019.015.
Mr. Larsen. Thank you, Mr. Barrios. I am going to turn to
Ms. Marlene Patrick-Cooper, the president of UNITE HERE Local
23.
You are recognized for 5 minutes.
Ms. Patrick-Cooper. Thank you. Good morning. Mr. Chairman
and Ranking Member and members of the subcommittee, my name is
Marlene Patrick-Cooper. I am a proud member of UNITE HERE. We
are one of the fastest growing private-sector unions in
America, with over 300,000 members in the hospitality industry,
including 20,000 people working in the airline catering
industry.
I am also privileged to be elected as the president of the
UNITE HERE Local 23. We are 20,000 hard-working women and men
who work in airline catering, universities, museums, airport
concessions, and hotel and parking attendants in the
Washington, DC, area. We are also in Atlanta, Biloxi,
Charlotte, Columbus, Indianapolis, Denver, New Orleans, Texas,
Tunica, Oklahoma, Utah, and New Mexico. Our members provide
food for all major U.S. airlines, American, Delta, and United.
I want to thank you for inviting us to this hearing to give
you a glimpse into the dark corner of the airline industry, and
to share with you the plight of our national airline catering
workers. This industry has come to be dominated by two
subcontractors: LSG Sky Chefs and Gate Gourmet. Airline
catering workers today are facing a twofold crisis of low wages
and little access to quality healthcare.
We are here to ask you to join us in demanding living wages
and decent healthcare in this industry in which job standards
have doomed a generation of airline catering workers to some of
the worst jobs found in our economy in this day.
Airline catering workers prepare first-class meals, they
load beverage carts, and they perform final security checks to
keep passengers safe. Your flight cannot take off without their
labor. And yet, despite performing vital work during a time of
unprecedented profit for U.S. commercial aviation industry,
catering workers too often struggle just to survive. Many live
in poverty. Many lack access to adequate healthcare. There are
workers in their fifth and sixth decades of working in these
kitchens who do not make $15 an hour. Indeed, nationwide, a
majority of all airline catering employees at the two largest
contractors earn less than $15, including hundreds of workers
who have been in their jobs for decades.
The situation is worse for workers in the South: 87 percent
of LSG Sky Chefs' employees in Florida, Georgia, Texas, and
North Carolina earn less than $15 per hour; 43 percent earn
less than $11 per hour. And, as an example, at Dallas-Fort
Worth, American Airlines' largest and most profitable hub, the
airline made $1.3 billion in profits in 2017, representing 30
percent of its total operating income. Yet the catering workers
serving American, they are making less than $9.85 an hour. And
the median wage income is $11.35.
And this is not just American Airlines' problem. Catering
workers at Delta and United are also struggling to make ends
meet. Whether they work in the cold food preparation and spend
their shifts in 40-degree refrigerated rooms, or whether they
drive trucks without air conditioning, even in triple-digit
temperatures, this invisible workforce requires a healthcare
plan to take care of their bodies under these harsh working
conditions.
Only 34 percent of U.S. workers at LSG Sky Chefs and Gate
Gourmet were able to afford their employer-provided health
insurance in 2018, and only 7 percent covered any of their
dependents. According to a survey of 224 of our airline
catering workers, 25 percent are uninsured, and 1 in 5 of them
rely on Government-funded programs for their and their family's
medical care.
It is unacceptable that working men and women are forced to
resort to public benefits while serving an airline industry in
the midst of a years-long run of record profits. This treatment
is especially outrageous, given the billions that American,
Delta, and United are giving back to their shareholders through
dividends and through stock buybacks. Surely three of the four
largest, most profitable airlines on the planet can afford to
do better.
Our members are fed up, and they have shown that they are
willing to act together. Over the summer, 15,000 airline
catering workers at 33 airports voted overwhelmingly to strike
as soon as it becomes lawful.
You will see in my submitted testimony the stories of many
workers, in their own words, about the struggle just for them
to survive day to day, their battles to care for themselves and
their families in the absence of attainable health insurance. I
hope you will look at these stories. In them you will see the
shameful treatment of these catering workers.
It is time for American, Delta, and United Airlines to take
responsibility for improving conditions for this large and
important workforce. We urge Congress to help to end these
intolerable conditions. They are a stain on the airline
industry, and, if left unchecked, it could reflect poorly on
the people we elect who stand by and let so many workers
suffer.
This year, American, Delta and United Airlines can and must
do right by airline catering workers. They should require the
contractors to pay the workers living wages. They should demand
that they provide decent and attainable health insurance, and
that they ensure that one job is enough for these workers to
live in dignity.
Thank you.
[Ms. Patrick-Cooper's prepared statement follows:]
Prepared Statement of Marlene Patrick-Cooper, President, UNITE HERE
Local 23
Mr. Chairman and Ranking Member, members of the subcommittee my
name is Marline Patrick-Cooper. I am a proud member of UNITE HERE, one
of the fastest growing private sector unions in America, with over
300,000 members in the hospitality industry--including 20,000 people
working in the airline catering industry. I am also privileged to be
the President of UNITE HERE Local 23--we are 20,000 hard working women
and men who work in airline catering, universities, museums, airport
concessions, and hotel and parking attendants in Washington, DC,
Atlanta, Biloxi, Charlotte, Columbus, Indianapolis, Denver, New
Orleans, Texas, Tunica, Oklahoma, Utah and New Mexico.
I want to thank you for inviting us to this hearing to give you a
glimpse into a dark corner of the airline industry and to share with
you the plight of our nation's airline catering workers.
Many airlines decided decades ago to outsource much of their
catering operations to third parties. Two companies, LSG Sky Chefs and
Gate Gourmet, have come to dominate the airline catering industry in
the United States. Just as airlines decided long ago to outsource these
jobs, they decided long ago to wash their hands of any responsibility
toward the men and women who work so hard to prepare and deliver meals
to planes on time so that those flights can take off on time.
At a time when the airline industry is making billions in profits,
it is unacceptable that airlines continue to deny responsibility for
the more than 20,000 people who make meals for their most important
passengers. As a result of their market power, the airlines influence
greatly the terms of the economic relationship. In this case, that
means forcing catering workers to live in poverty. We believe that one
job should be enough for a person to live on and pursue the American
Dream. The airlines, apparently, do not share in our belief.
I want to concur with the testimony that will be delivered by the
other labor witnesses who are joining me in telling a story about the
troubling labor practices in this industry. Members of this
subcommittee, we hope that after learning more about the struggles of
these dedicated airline industry employees today, you will offer your
support to these workers and join us in demanding living wages and
decent health care in this industry and for a stop to business
practices that have doomed a generation of airline catering workers to
some of the worst jobs found in our economy.
Airline Catering Workers in Crisis
UNITE HERE represents more than 20,000 people who prepare food for
airline passengers at American, Delta, and United among other airlines.
The majority of these workers are employed by the subcontractors LSG
Sky Chefs and Gate Gourmet. About 3,000 are employed directly by United
Airlines. All of them face a two-fold crisis of low wages and little
access to affordable healthcare. I am attaching many of their stories
in their own words in Appendix A. These workers have become a poster
child for what is wrong with our economy--an economy that rewards
airlines for forcing the workers who prepare food for their customers
to live in poverty. When workers earn less than $10 an hour in airline
food kitchens while the airlines rake in billions in annual profits,
something is seriously wrong. We are here today is because American,
Delta, and United need to take responsibility for the conditions facing
airline catering workers. We believe their contract terms with airline
caterers leave little room to pay workers a living wage. In turn many
of these workers are forced to seek public benefits such as Medicaid.
The public should not have to pick up the tab for people working in a
time of historic profitability in the industry.
Low Wages Persist Despite Record Profits
We appear before this subcommittee knowing that the airlines are
imposing poverty wages on catering employees at a time of historic
market power and profits. American's CEO, Doug Parker, had this to say
about the future of the industry:
``I don't think we're ever going to lose money again. We have
an industry that's going to be profitable in good and bad
times.''
The economics of this industry have never been stronger.
In 2018 American reported net profits (excluding net special items)
of $2.1 billion. It also returned $986 million to shareholders through
dividends and share buybacks. Delta returned $2.5 billion to
shareholders--$1.6 billion in share repurchases and $909 million in
dividends. United Airlines reported $2.5 billion net income in 2018.
Strong profits continued in 2019. Yet the women and men who form
the backbone of their flight food operations have not shared in the
industry's success.
For instance, Dallas-Fort Worth, American's largest and most
profitable hub, returned $1.3 billion in profits in 2017 representing
30% of its total operating income. Catering workers serving American
there make as little as $9.85 an hour and the median wage is just
$11.35.
Nationwide, a majority of all airline catering employees at the two
largest contractors earn less than $15 per hour, including hundreds of
workers who have been in their job for decades. The situation is worst
for workers in the South. Eighty-seven percent (87%) of LSG Sky Chefs
employees in Florida, Georgia, Texas and North Carolina earn less than
$15 per hour; 43% earn less than $11 per hour.
Health Care Coverage Evades Thousands
The poverty conditions facing catering workers are exacerbated by
the lack of access to quality affordable healthcare. In 2019 UNITE HERE
surveyed 2,240 of the approximately 14,000 airline catering workers--
from 21 airports in 15 states--employed by LSG Sky Chefs and Gate
Gourmet. These workers primarily serve American, Delta and United,
among other airlines. Attached to my testimony in Appendix B is a full
fact sheet summarizing the survey's topline conclusions, but I will
provide some of the conclusions here:
21% rely on government-funded programs for their own
medical care. Of parents with children under age 26, 42% reported kids
on government-funded programs for medical care.
25% are uninsured.
Of parents with children under age 26, nearly one in six
reported uninsured kids.
One in three has medical debt.
26% of respondents reported skipping or delaying care,
prescriptions, or medical treatment for themselves or their families in
the past 12 months because of the cost their families would have to
pay.
American, Delta, and United airlines must step in and step up. This
is a healthcare crisis with dangerous consequences. It exposes one of
the most vulnerable workforces in our economy to suffering, untreated
illness and the inevitability of higher mortality rates.
Bargaining: Timeline and What's At Stake
As many members of the Committee know, bargaining in the airline
industry is regulated by the Railway Labor Act, and that is the case
with both Sky Chefs and Gate Gourmet. UNITE HERE is currently in
bargaining with both Sky Chefs and Gate Gourmet, the latter jointly
with the International Brotherhood of Teamsters. We have been in
bargaining with LSG Sky Chefs since October of 2018, and in mediation
since May of 2019 when the National Mediation Board assigned a
mediator. Mediation commenced with Gate Gourmet in September of 2018.
At the table, workers are demanding a $15/hour minimum wage and access
to quality affordable healthcare
Contract bargaining under the Railway Labor Act is often a lengthy
process, with successful negotiations taking several years. The poverty
conditions facing airline catering workers make any delay in bargaining
improvements particularly difficult. That is why, last June, more than
15,000 workers voted to authorize a strike if and when released to
self-help by the NMB. Since that vote, we have requested release in
both sets of bargaining, but the NMB has determined that further
mediation is necessary.
We sincerely appreciate the efforts of the NMB in working to
address this growing labor concern, and in conducting mediation with
LSG Sky Chefs and Gate Gourmet simultaneously. But we fear that the
caterers might use further mediation to stall. We believe these
workers' goal is to escape poverty, not to disrupt travel, and that a
prompt release from the RLA mediation process is the only path towards
settlement.
We've Reached a Breaking Point
The nation's airline catering employees have reached a breaking
point.
They live in poverty.
Most lack any health care and struggle to provide
treatment for themselves and their families.
They are forced to rely on public assistance for basic
necessities.
Many have worked for 10, 20 plus years and still earn
barely above the minimum wage applicable to the jurisdictions where
they work
Some, like those who work at American hubs in Charlotte
and Dallas-Fort Worth, make $9-$10 an hour.
The airlines and caterers continue to take advantage of a
labor law that prevents these workers from exercising rights enjoyed by
other private sector work forces.
And the airlines still refuse to take responsibility for
conditions in this industry.
We urge Congress to help us end these intolerable conditions--they
are a stain on the airline industry and if left unchecked, reflect
poorly on the people we elect who stand by and let so many workers
suffer.
appendix a: supplementary statements from airline catering workers
1. DCA--Tenae Stover
My name is Tenae Stover. I am a native Washingtonian, and I have
been working at Reagan National Airport for an airline catering
subcontractor servicing flights for airlines such as American at its
hub. I am a leader with my union UNITE HERE in our national fight for
respect and dignity and for one job to be enough to live for airline
catering workers across the United States. The airline industry is a
365-day business. Every day, including over the holidays, my coworkers
and I prepare meals and beverages for thousands of passengers traveling
through National. Many Members of Congress, including members of the
House subcommittee on Aviation, have enjoyed a snack or beverage on a
flight thanks to our labor. We all work on our feet for eight or more
hours a day. Our health insurance is awful. My individual insurance
costs me about $60 per week--some $250 per month--and others pay
hundreds more for family plans. Even though some of my coworkers are
older, many cannot afford the company's insurance at all. We only make
around $13 per hour at my kitchen. Most airline catering workers across
the country make less than $15. One coworker of mine at National who
has been working there for 30 years makes the same hourly rate as I do
after working there for 3 years. Two years ago, I was evicted from my
home because I could not afford my rent, transportation, food,
clothing, and health insurance. To this day, I've yet to afford my own
place. My coworkers and I know the stakes are high. We are fighting
against corporate greed, and multibillion-dollar companies like the
``Big 3'' U.S. airlines--American, Delta and United. We are simply
tired of being overworked and underpaid. We are fighting for $15 and
for access to quality healthcare. To the American, Delta and United: it
is time to take immediate action and fix this labor issue now.
2. DFW--Christina Hernandez
My name is Christina Hernandez. I am an airline food worker at
Dallas-Fort Worth International Airport. Recently, I achieved a
milestone at work: 30 years' service in the airline catering industry.
Since 1989, I have catered flights for airlines such as American out of
its hometown hub. At 57, I wish I could be dreaming about retiring
soon. But despite my three decades' work to help keep airlines like
American in flight, I cannot even begin to think about retirement. In
November 2017, I started experiencing chest pains. The pains grew so
intense over the course of a couple of days, and I had no other choice
but to call my son and ask him to take me to the ER. Turns out, I had a
heart attack. I spent two days in the hospital but had to immediately
return to work after I was released because I was worried about paying
my bills--the house wasn't paid off; the car wasn't paid off. I ended
up in the hospital again shortly after returning to work, this time
with pneumonia. Even though I had insurance at the time, I am still
responsible for paying a significant amount of the costs. Two years
later I still live with the weight of the medical debt from this
incident. The bills come in the mail, and sometimes I do not even
bother to open them, because I know that I cannot afford to pay them. I
got sick, and it destroyed my credit, and I have not been able to see a
doctor in two years. How can I be paying $131.18 for the company's
health insurance to cover myself, my husband, and our son, and still be
drowning in medical debt after 30 years on the job? My dream of
retiring depends on this fight.
3. JFK--Juan Blanco
My name is Juan Blanco. I live in New York and I'm a member of
UNITE HERE Local 100. I've been a driver for LSG Sky Chefs at JFK
Airport since 2005, and I drive catering trucks that serve American and
other airlines. My job can be dangerous. Over my 15 years on the job, I
have had more than one work-related issue that I have needed medical
care for. One of the worst was in 2017, when a plane door hit me on the
head, giving me a concussion and a shoulder injury that required
surgery. I was out of work for weeks and relied on workers'
compensation to cover the hospital bills. On top of that, I am a
survivor of lymphoma. I need to visit the doctor every six months to
make sure that I am still healthy. Going to these regular checkups is a
matter of life or death for me. I am paying $52 each week for the
company's individual health insurance plan, which is not only excessive
and unaffordable, but the quality of the plan is also inadequate. In
addition to the $52 per week I pay to keep my coverage, I am currently
spending another $100 per month to pay off a $3,500 bill for a recent
colonoscopy. So not only is my health insurance expensive, it doesn't
even cover basic care that is important for me at my age. I serve
planes for some of the most profitable airlines, including American at
one of its most important hubs. It's time that LSG SkyChefs takes care
of us workers in this physically demanding job by offering a more
accessible plan that tends to our medical needs.
4. MIA--Sonia Toledo
My name is Sonia Toledo. I've worked at for LSG Sky Chefs at the
Miami Airport--one of American Airlines' most important hubs--since
1991. After nearly 30 years, I make just $12.45 an hour. This is less
than the minimum wage the County requires that other airport workers
receive. Recently, my husband became unable to work because of a
medical condition. We own a house and have a mortgage to pay on top of
our other bills, and it's been a struggle for us to adjust to being a
one-income household. As a result, I had to make the toughest decision
of my life, which was to drop my health insurance coverage entirely.
I'm 55 years old. This is an age when access to healthcare is more
important than ever. The work I do benefits American Airlines--a huge,
profitable airline--but I'm scared every day that I won't be able to
afford to pay for a doctor if either my husband or I need medical
treatment. It's disgraceful, that after nearly 30 years of service, I'm
faced with such an impossible choice. My co-workers and I have been
fighting for years, and we will not quit until we win what we deserve
from the airline industry. American Airlines can stand up today and
solve this problem. American and other airlines must act so that my co-
workers and I don't have to make a choice between having a roof over
our heads and having health care.
5. MSP--Jemal Dube
My name is Jemal Dube. For about 13 years, I have worked for LSG
Sky Chefs, an airline catering subcontractor, out of the kitchens at
the airport in Minneapolis. In my kitchen and catering kitchens across
the country, most of my coworkers make under $15 an hour, even some
people who have been there for decades. We work for a big corporation
that makes a lot of money. Even though I make more than $15 an hour as
a transportation coordinator at MSP, the $400 I pay each month for the
company's health insurance plan puts a strain on my finances.
I have a family with four kids. They need food. They need medical
care. They need school supplies. I must make sacrifices for my own
health care by avoiding going to the doctor so I can afford to take
care of my four kids. Truthfully, I like my job. I enjoy providing a
good service to Delta Air Lines at one of its biggest hubs. Delta can
use its power to end this labor dispute so can earn what we deserve for
our demanding work. This fight has been going for too long and has
grown very tough on my family. It is time that one job is enough for
airline catering workers like me.
6. DIA--Marie Jacob
My name is Marie Jacob. I have work in food production at the
United Airlines catering kitchen in Denver for over 5 years now. 95% of
workers in United's five kitchens are immigrants or people of color. We
come from 60 different countries. I am from the Pacific Islands. In my
kitchen in Denver many, many of us are islanders. There are entire
families working together in the kitchen. Last year, my coworkers and I
in Denver fought hard to win $15 for DIA to set us on track for a
minimum wage of $15 per hour. But even with our raises already taking
effect to our weekly paycheck, one job is not enough to afford Denver's
soaring cost of living. I am continuing to fight for my son so that we
win more of what we deserve for catering United Airlines flights at its
hub. I had to take my son to the hospital for a toothache, which turned
into a $300 bill to fix his teeth--which I could not afford. I ask
myself all the time, how is it that we work for a multibillion-dollar
airline and we can't even afford to take care of our kids' health, much
less the rising cost of housing in Denver?
appendix b: healthcare survey toplines summary
Only 34% of U.S. workers at LSG Sky Chefs and Gate Gourmet had
employer-provided health insurance in 2018, and only 7% covered any
dependents. The premiums on the employer plans are often unattainable
for the low wage workers, and those who do enroll face high deductibles
of between X and Y and co-pays of between X and Y that also limit the
care they are able to access. In order to better understand the impacts
the current employer healthcare on our members' lives, in ___ 2019
UNITE HERE conducted a survey of 2,240 out of approximately 14,000
airline catering workers employed by LSG Sky Chefs and Gate Gourmet.
Respondents are from 21 airports in 15 states and primarily serve
American, Delta and United, among other airlines.
Some key findings:
21% rely on government-funded programs for their own
medical care. Of parents with children under age 26, 42% reported kids
on government-funded programs for medical care.
25% are uninsured. Of parents with children under age 26,
nearly one in six reported uninsured kids.
26% of respondents reported skipping or delaying care,
prescriptions, or medical treatment for themselves or their families in
the past 12 months because of the cost their family would have to pay.
12% of respondents reported that they or a family member
have traveled to other countries to receive medical care there instead
of in the United States.
33% of respondents reported medical debt, nearly half of
whom owe over $1,000.
56% of respondents reported having gone to work sick, 66%
of whom because they could not afford to miss time.
10% of respondents reported their household has received
food stamps (SNAP) in the past year.
64% identified as immigrants to the United States.
The table on the following page summarizes the percentage of
respondents who rely on government-funded programs or are uninsured in
each city surveyed.
----------------------------------------------------------------------------------------------------------------
% of parents
% depend on with kids
% rely on government under 26 % of parents
Number government- care for reporting with kids
Surveyed / funded either kids on % uninsured under 26
Total Workers programs for themselves or government- reporting
their own their funded uninsured
medical care children programs for child
medical care
----------------------------------------------------------------------------------------------------------------
Anchorage, AK 16 / 103 13% 13% 0% 6% 20%
Boston, MA 37 / 348 27% 32% 47% 8% 6%
Charlotte, NC 38 / 168 24% 39% 56% 26% 6%
Chicago, IL 503 / 1450 11% 24% 37% 25% 18%
Dallas, TX 172 / 921 10% 23% 33% 37% 31%
Denver, CO 35 / 221 11% 34% 53% 31% 32%
Detroit, MI 92 / 486 27% 40% 50% 27% 14%
Houston, TX 16 / 202 13% 25% 33% 50% 44%
Los Ang124 / 902 21% 34% 43% 21% 10%
Miami, FL 128 / 840 38% 48% 54% 35% 24%
Minneapolis, MN 81 / 488 22% 37% 55% 47% 7%
New York, NY 123 / 1200 33% 42% 49% 20% 9%
Orlando, FL 115 / 352 27% 39% 43% 23% 17%
Philadelphia, PA 35 / 416 14% 31% 32% 31% 5%
Phoenix, AZ 47 / 403 21% 28% 40% 34% 4%
Sacramento, CA 21 / 95 38% 52% 60% 5% 0%
San Diego, CA 10 / 53 50% 60% 20% 20% 20%
San Francisco, CA 443 / 1732 26% 34% 39% 11% 14%
San Jose, CA 20 / 155 20% 20% 0% 10% 0%
Seattle, WA 146 / 946 12% 32% 52% 42% 8%
Washington, DC 38 / 156 24% 32% 45% 11% 10%
NATIONAL TOTAL.... 2240 21% 33% 42% 25% 16%
----------------------------------------------------------------------------------------------------------------
Mr. Larsen. Thank you, Ms. Patrick-Cooper. I turn now to
Dr. Brian Callaci.
Is that the pronunciation? Great. Dr. Callaci, you are
recognized for 5 minutes.
Mr. Callaci. Hi, my name is Brian Callaci. I am an
economist and a postdoctoral scholar at the Data and Society
Research Institute. I want to emphasize that the views I
express in this testimony are my own, and should not be
construed as representing any official position of my employer.
I want to thank Chairman Larsen, Ranking Member Graves, and
the other members of the subcommittee for the opportunity to
discuss the report, ``Fissuring in Flight,'' that I authored
for the Communications Workers of America. I have included a
copy of the full report in the official record.
So the domestic airline industry provides an excellent
laboratory to study several of the trends affecting American
workers that have become of intense interest to economists and
social scientists in recent years. These trends include, first,
outsourcing or fissuring, the use of subcontractors to replace
work previously done by direct employees; second, growing
industrial concentration and its two faces, monopoly power over
consumer prices and monopsony power over wages and other input
prices; and finally, financialization, which is a term
describing the prioritization of shareholder interests over the
other stakeholders within the firm.
And I will begin with an anecdote--I think that is a good
way to illustrate things--before I get to the data. Several
years ago American Airlines outsourced 500 wheelchair
attendants at Miami International Airport to a contractor
called Eulen America. Now, it is possible that Eulen, through
specialization, was more efficient at that activity than
American Airlines was. But another advantage of outsourcing
that work to Eulen was that Eulen paid lower wages than
American Airlines.
And what is interesting is that, when the airport enacted a
living wage ordinance that raised the wages of employees of
service contractors, American reversed itself and then
insourced the work. So it is unlikely, just in terms of a
laboratory experiment, that the contractor became more and then
less efficient within a few years. Avoidance of a living wage
law seems to be the variable that describes the decision to
outsource and then insource.
Now, workers in the airline industry have been affected,
actually, by two distinct types of outsourcing. On one hand,
airlines have increasingly outsourced ground and passenger
service work to third-party contractors. On the other hand,
legacy carriers have been turning to outsourced regional
airlines to fly an increasing share of routes.
Now, if you have ever flown one of these connecting
flights, legacy carriers might control the operations of
regional airlines to an extent virtually equivalent, especially
from the consumer's perspective, of full integration. Yet
customers and workers of regional airlines are treated as
customers and workers of separate firms under many of the
important applicable laws.
The report documents some trends in employment and wages in
the airline and outsourced airline service industries. So I am
just going to describe just a few of the highlights.
First, we can see clearly from the data that airlines are
increasingly turning to third-party contractors. As the
outsourced share of employment, conservatively estimated, has
grown from 19 percent in 2001 to 30 percent in 2018, direct
employee wages--that is, wages of employees who work directly
for airlines--are above the national average for all workers,
and have been rising since 2009, while outsourced employee
wages are below the national average, and have been stagnant in
that time. They have not risen.
Meanwhile, heavily outsourced occupations in the airline
industry have lower wages. Comparing the two years 2008 and
2018, just looking at some of the occupations, we can see an
increase in outsourcing of 10 percent from 2008 to 2018, just
across those 10 years, across a select group of occupations,
such as baggage porters, customer service reps, cargo agents.
It is correlated with a decline in wages of 5 percentage
points.
Meanwhile, employment of regional airline workers has been
growing as a share of total airline industry employment, and
regional pay scales are far below legacy wage scales. American
Airlines does lead the pack in terms of regional outsource, and
they operate 54 percent of their domestic flights through
regional carriers.
And it is just one example of the wage gap between regional
and mainline operations, according to Department of
Transportation data. While mainline flight attendants average
around $50,000 per year in salary, regional flight attendants
average less than $30,000. So there is quite a big gap there.
And a similar gap exists for ground service workers.
And the increasing substitutability of regional for
mainline jets due to improvements in jet technology threatens
to increase the pace of this type of outsourcing. You could see
more and more workers in the lower wage scales.
Pressure from shareholders in the financial markets across
the American economy, across industries, has been a major
driver of outsourcing. Institutional shareholders have pushed
managements to outsource more activity, while demanding a
greater share of corporate profits, leaving less money on hand
to invest in, say, innovations, research, and development, the
skills and wages of their employees, and all those other things
that firms can spend their cashflow on. United paid almost $8
billion in buybacks since 2013; Delta almost $11 billion; and
American, $12.5 billion.
The decline of the U.S. collective bargaining regime has
removed the major force that could counter these trends.
First, the falling share of workers in unions across the
economy has removed the primary source of countervailing power
against large corporations.
And second, the rising use of contracting arrangements
excludes these workers who are outsourced, like the wheelchair
attendants at American, from being able to bargain. And it
reduces the effectiveness of a traditional collective
bargaining.
Policies to restore worker voice within this fissured
industry would seem to be an appropriate response to these
realities. Thank you.
[Mr. Callaci's prepared statement follows:]
Prepared Statement of Brian Callaci, Ph.D., Postdoctoral Scholar and
Labor Economist
My name is Brian Callaci. I am an economist and a Postdoctoral
Scholar at the Data & Society Research Institute. The views I express
in this testimony are my own, and should not be construed as
representing any official position of my employer.
I want to thank Chairman Larsen, Ranking Member Graves, and other
members of the subcommittee for the opportunity to discuss the report,
``Fissuring in Flight'' that I authored for the Communications Workers
of America. Please include a copy of the full report in the official
record.
The domestic airline industry provides an excellent laboratory to
study several of the trends affecting American workers that have become
of intense interest to economists and social scientists in recent
years. These trends include: first, outsourcing or ``fissuring,'' the
use of subcontractors to replace work previously done by direct
employees; second, growing industrial concentration and its two faces,
monopoly power over consumer prices and monopsony power over wages and
other input prices; and third, financialization, the prioritization of
shareholder interests over other stakeholders within the firm.
I'll begin with an anecdote. Several years ago American Airlines
outsourced 500 wheelchair attendants at Miami International Airport to
a contractor, Eulen America. Perhaps Eulen, through specialization, was
more efficient at that activity than American Airlines. Another
advantage, however, was that Eulen paid lower wages than American
Airlines. When the airport enacted a living wage ordinance that raised
the wages of employees of service contractors, American reversed itself
and insourced the work. It's unlikely that the contractor became less
efficient in that time. Avoidance of the living wage law and reducing
labor costs looks to be a more likely explanation.
Workers in the airline industry have been affected by two distinct
types of outsourcing. On one hand, airlines have been increasingly
outsourcing ground and passenger service work to third-party
contractors. On the other hand, legacy carriers have been turning to
outsourced regional airlines to fly an increasing share of routes.
Legacy carriers minutely control the operations of regional airlines to
an extent virtually equivalent to full integration, yet customers and
workers of regional airlines are treated as customers and workers of
separate firms under many important applicable laws.
My report documents trends in employment and wages in the airline
and outsourced airline service industries. Findings include:
Airlines are increasingly turning to third party
contractors, as the outsourced share of employment, conservatively
estimated, has grown from 19 percent in 2001 to 30 percent in 2018.
While, direct employee wages are above the national average for all
workers and have been rising since 2009, outsourced employee wages are
below the average and have been stagnant.
Heavily outsourced occupations in the airline industry
have lower wages. An increase in outsourcing of ten percent from 2008
to 2018 across a selected group of ground service occupations, such as
baggage porters, customer service reps, and cargo agents, is correlated
with a decline in wages of five percent.
Employment of regional airline workers has been growing
as a share of total airline industry employment, and regional pay
scales are far below legacy wage scales. American Airlines has 3
wholly-owned and 4 contracted regionals, Delta has one wholly-owned and
4 contracted, and United has 8 contracted carriers. American leads the
pack in regional outsourcing, operating 54% of its domestic flights
through regional carriers.
As one example of the large wage gap between regional and
mainline operations according to DOT data, while mainline flight
attendants average around $50,000 per year, regional flight attendants
average less than $30,000. A similar gap exists for ground service
workers. The increasing substitutability of regional for mainline jets
threatens to increase the pace of this type of outsourcing.
Pressure from shareholders and financial markets has been a major
driver of outsourcing. Major institutional shareholders have pushed
managements to outsource more activity while demanding a greater share
of corporate profits, leaving less money on hand to invest in
innovations or employees. United paid $7.75B in buybacks since 2013,
Delta $10.99B, and American $12.52B.
The decline of the US collective bargaining regime has removed the
major force that could counter these trends. First, the falling share
of workers in unions has removed the primary source of countervailing
power against large corporations. Second, the rising use of contracting
arrangements excludes outsourced workers--like the wheelchair
attendants at Eulen America--reduces the effectiveness of traditional
firm-level collective bargaining.
Policies to restore worker voice within this fissured industry
would seem to be an appropriate response to these problems.
attachment
``Fissuring in Flight: Consolidation and Outsourcing in the U.S.
Domestic Airline Industry, 1997-2018'' is retained in committee files
and is available at: https://cwa-union.org/sites/default/files/
20200108-fissuring-in-flight.pdf
Mr. Larsen. Thank you, Dr. Callaci. I now turn to and
recognize for 5 minutes Mr. Chris Harrison of Airlines for
America.
Mr. Harrison, you are recognized for 5 minutes.
Mr. Harrison. Chairman Larsen, Chairman DeFazio, Ranking
Member Graves, members of the committee, thank you for the
opportunity today to testify on behalf of Airlines for America,
which is the trade association for the leading passenger and
cargo carriers in the United States.
My name is Chris Harrison, and I am a partner with Ogletree
Deakins. I have practiced in the area of aviation law for
almost 15 years now.
A little background on U.S. airlines, they employ
approximately 750,000 full and part-time workers, globally.
They support more than 10 million U.S. jobs. Thousands of these
are ground service workers. There are approximately 28,000
total flights a day that are flown by U.S. carriers, and these
are flown in the United States to over 500 different airports,
and some of these are rural airports that you have heard about,
such as Tupelo, Mississippi, and places like that, and then
some of them all the way up to large airports, like JFK and
LAX.
Each airport has unique requirements that the airlines have
to meet when they fly to those airports. Sometimes they are
different. And while the diversity of the operating environment
may differ, the airline approach to how they handle their
business does not. Airlines take great effort to comply with
all Federal, State, and local laws. They also routinely monitor
the practices of their contractors to make sure that they are
following those laws.
Now, safety is, has been, and will be the airline's number-
one priority. And that includes passengers, that includes its
employees, and that includes its contractors. They take that
very seriously, both on the ground and in the air. That
commitment includes ground employees that we are talking about,
or ground workers that we are talking about today. Their
commitment to safety includes them, as well.
Airlines have adopted a policy of continuous safety
improvement, and there are a number of ways in which the
airlines do that. For example, there are programs called ground
safety awareness programs that implement a nonpunitive way for
employees to come forward with safety concerns. And there is a
panel of people at the company--that includes labor, that
includes management. And when employees have an issue, they
can, in a safe place, come, bring that issue forward, and have
it addressed. And the airlines look at that.
And again, labor is part of that panel, and they look at
opportunities to improve things that happen. They look for
trends. They look for, you know, either specific instances or
trends, and try to figure out what is a way we can improve a
process to make things safer.
A4A also participated on behalf of the airlines with OSHA
on an airline ground safety panel, and this took place during
the entire Obama administration. It was over approximately a
10-year period, total. And included in that panel with OSHA was
A4A, the Regional Airline Association, airline ground companies
and contractors. The unions also participated in that panel, so
you had the IAM, the TWU, and the AFL-CIO all participated for
10 years in that panel. And over that 10-year span, the panel
met regularly to review and endorse best practices in both
airport and ground safety.
Information that came out of that panel was distributed to
over 1.6 million workers, and that included a number of
different things that I can address later. But that panel, I
think, did some very good work.
OSHA came out after the panel was over, and during that
process, and said that it was absolutely a collaborative
success. The AFL-CIO made a statement as part of OSHA's release
that said the panel furthered the shared goal to ensure that
all workers return home to their families each day as healthy
as when they went to work.
Now, like many other industries, airlines do use
contractors. Sometimes the contractors are other airlines,
sometimes it is regional, sometimes it is third-party
contractors for a variety of services. And these contractual
relationships benefit airline customers by enabling air
carriers to provide more comprehensive services.
I think Chairman Graves mentioned this, but sometimes
airlines, for example, fly to a small airport. There may be a
flight that comes in at 6 a.m. and leaves. There may be a
flight at 6 p.m. It wouldn't make any sense, really, for an
airline to employ someone and require an employee to commute
from wherever they are coming from, come in, work 2 hours,
leave, and then, at the end of the day, at 6 p.m., come back in
and work another couple of hours and then leave.
And so, in those situations, airlines very often contract
for that kind of work. That way there is a third party that
either can combine that with other carriers, and that way the
employees get a full shift, and it is much more efficient.
Airlines are committed to their employees and to their
contractors. They will continue to hold their contractors to
follow the law, Federal law, State law, and local law. And they
are committed to doing that, absolutely.
Thank you to this subcommittee for allowing A4A to testify,
and we appreciate the opportunity to answer any questions you
may have.
[Mr. Harrison's prepared statement follows:]
Prepared Statement of Chris Harrison, on behalf of Airlines for America
Thank you for the opportunity to testify today on behalf of
Airlines for America (A4A) regarding working conditions for airline
ground workers. My name is Chris Harrison, and I am a labor and
employment attorney with the law firm of Ogletree Deakins. Prior to
joining Ogletree Deakins, I also served as in-house counsel at Pinnacle
Airlines Corporation. I have spent almost fifteen years of my
professional life representing airlines and airline service contractors
and appreciate the chance to bring perspective to this important set of
issues.
Background
U.S. passenger and cargo airlines directly employ some 750,000
(full-time and part-time) workers across the globe. U.S. airlines
operate approximately 28,000 flights per day, with passenger service to
over 80 countries and cargo service to more than 220. Each day, those
U.S. airlines carry 2.4 million passengers and deliver 58,000 tons of
cargo to that global network of countries and municipalities. As a
whole, U.S. commercial aviation drives 5% of U.S. Gross Domestic
Product (GDP) and helps support more than 10 million U.S. jobs,
including thousands of ground service workers.
The U.S. commercial aviation footprint is a complex and robust
framework consisting of a multitude of airports broadly spanning from
rural communities to large metropolitan areas and everywhere in
between. According to Federal Aviation Administration (FAA) data, more
than 500 U.S. airports have commercial service, each of these airports
being unique with varying economic arrangements that can differ
significantly. For example, almost every domestic airport that airlines
serve is government-owned, and generally every contract entered into by
an airline must comply with each airports unique airport lease
requirements, the laws of the state/county/municipality in which that
airport is located and all other federal requirements. While the
diversity of each operating environment may differ greatly, the airline
approach does not. Airlines take great effort to comply, and do comply,
with all applicable federal, state and local laws. Airlines also
routinely monitor the practices of their airport ground service
contractors, which can be other airlines or independent ground services
vendors. As purchasers of those services, airlines hold vendors to the
highest standards and requires them to follow all applicable laws and
regulations.
Ground Worker Safety
Safety of employees and passengers is and always will be the U.S.
airline industry's top priority. Airlines take safety very seriously,
and that commitment certainly includes the safety of airport ground
workers regardless of employment status as an in-house employee, prime
contractor or subcontractor. Airlines have adopted a commitment to a
continuously improving safety culture and have implemented non-punitive
Ground Safety Awareness Programs (GSAPs) which have become standard
throughout the industry and engage both workers and applicable union
representatives.
The industry also participated in the U.S. Department of Labor
(DOL) Occupational Safety and Health Administration's (OSHA) Airline
Ground Safety Panel (AGSP) from 2008 to 2018. The industry partners in
the OSHA AGSP included A4A, the Regional Airline Association (RAA),
airport ground service companies, the International Association of
Machinists (IAM) and the Transport Workers Union (TWU). Over that ten-
year span, the AGSP met regularly to review and endorse best practices
in airport and airline ground safety. When OSHA closed out the AGSP in
May 2018 it noted a number of successes that resulted from the
endeavor, including but not limited to:
Development of 15 toolbox talks and fact sheets
discussing best practices for using Baggage Tugs and Carts,
Beltloaders, Pushback Vehicles, and High-Lift Trucks in their
workplace. The resources addressed topics including slips, trips and
falls; falling objects; amputations; vehicular accidents; and ergonomic
hazards in the airline industry. AGSP also created a toolbox talk for
their employees on OSHA's revised Hazard Communication standard;
Development of five guidance documents, including one on
cold and heat illness identification; one on distracted driving by
airline employees on the ramp and airport roadways; and the other three
on the fundamental functions of airline vehicles;
Case study on hazards associated with the operation of
High-Lift Box Trucks; and
Disseminated information and resources to over 1.6
million individuals in the airline industry.
The OSHA AGSP was a tremendous success for all involved and showed
the collaborative commitment both labor and management have toward
safety. Excerpts from the OSHA press release \1\ include:
---------------------------------------------------------------------------
\1\ OSHA Press Release--October 2012--AGSP Renewal
``Our continued Alliance with the Airline Ground Safety Panel
will focus on preventing worker injuries caused by slips, trips
and falls and being struck by objects,'' said Assistant
Secretary of Labor for Occupational Safety and Health David
Michaels (Obama Administration). ``We look forward to working
with the panel to educate and train employers and workers on
---------------------------------------------------------------------------
preventing workplace injuries.''
``The three labor organizations on the panel--the International
Association of Machinists and Aerospace Workers; Transportation
Trades Department, AFL-CIO; and the Transport Workers Union of
America, AFL-CIO--praised the Alliance for furthering the
shared goal to ensure that all workers return home to their
families each day as healthy as when they went to work.
Airlines for America, a panel participant that represents the
airline industry, also expressed its support for the Alliance,
stating that its member airlines are pleased to be a part of
this voluntary, collaborative program with OSHA and labor union
partners to further enhance the safety of airline employees.''
The industry remains committed to maintaining and continuously
improving safety for all workers.
Ground Worker Contractual Arrangements
Like many industries, airlines sometimes contract with companies,
such as local vendors and other airlines, for a variety of services
including airport groundwork. These contractual relationships benefit
airline customers by enabling air carriers to provide more
comprehensive services. For example, it is a common industry practice
for airline ``A'' to ground handle for an airline ``B'' at certain
airports. This is especially common where a U.S. airline handles the
ground services at a rural airport or for a foreign code-share carrier
at a domestic airport. Likewise, major and regional airlines routinely
handle ground servicing for each other.
Baggage handling is another example of a service where the demand
can vary greatly at any one airport with periods of concentrated demand
followed by slack periods. For this reason, in some instances, baggage
handling in the ``common baggage'' areas beneath most airport terminals
is sometimes performed by third party contractors. A shared contractor
enables efficiencies. At certain other airports, the logistics of the
complex and extensive baggage systems that must move baggage to and
from multiple terminals and gates, along with ``common baggage
screening'' areas mandated by the Transportation Security
Administration (TSA), also has fostered the use of third party
``consortiums'' that can nimbly serve all airlines.
Airline Worker In-Sourcing
While ground handling and baggage handling are just a couple
examples of services that may be considered for a service contract, it
is important to note that airlines also regularly in-source work. Over
the past four decades, the number of passengers flown by U.S. airlines
has tripled from approximately 300 million to 900 million. This growth
has been fueled by air carriers growing their networks and expanding
service to new markets. When an airline starts operations at a new
airport, the general practice is to contract with other airlines and
service providers already present at that airport. If the new service
proves to be successful and the airline continues to expand at that
airport, the airline may hire its own employees to handle the
operations. In fact, many existing airline labor contracts with ground
service unions require that once operations at a new station reach a
certain level (example: 20 or more daily arrivals and departures) the
work must be transferred to airline employees. These provisions have
been invoked on countless occasions over past decades. This contractual
flexibility allows airlines to enter new markets and enhance
competition. In many instances, without this market balance, service to
some communities would no longer be economically or operationally
feasible.
Airline Employment and Compensation
U.S. airlines are proud of their strong record of job creation.
Since the passenger carriers began their current economic turnaround in
2010, employment has increased 18% from 378,000 to 447,000 full-time
equivalents. For the past four years, job creation in the airline
industry (both passenger and cargo) has consistently outpaced overall
U.S. job growth. Airlines are committed to their employees.
As noted, contract employees also play a pivotal role in the daily
operation of an airline. Regardless of whether a prime contractor is
retained by an airline directly or through a consortium or is another
airline, they are integral to system operation. As purchasers of those
services, airlines will continue to hold any contractor to the highest
standards and require them to follow all applicable federal, state and
local laws and regulations. Airlines are committed to working with any
and all vendors in good faith based on the local circumstances, laws
and regulations.
However, applied to a broader debate as to whether there should be
a ``living wage'' (or an increase in the minimum wage), airlines
believe that any application of a new wage standard should be applied
to all industries and all segments of the economy within the
jurisdiction contemplating such a new standard. Airline employees and
associated contractors should not be exclusively singled-out or treated
differently than employees at a hotel, restaurant or any other entity.
It is simply not good public policy to arbitrarily apply a wage
standard to one component of the economy versus another.
Thank you to the Subcommittee for asking A4A to testify. We
appreciate the opportunity, and I look forward to your questions.
Mr. Larsen. Thank you, Mr. Harrison. I now turn--and I
appreciate your patience--to Mr. Russell Brown, RWP Labor.
You are recognized for 5 minutes.
Mr. Brown. Chairman Larsen, Ranking Member----
Mr. Larsen. Sir, turn your microphone on.
Mr. Brown. Chairman Larsen, Ranking Member Graves, and
distinguished subcommittee members, thank you for having me
here.
My name is Russ Brown. I am a retired airline employee with
25 years of service. I have worked below the wing in lavatory
services, water service, baggage handling, and air freight;
above the wing as a ticket counter agent, a gate agent, and a
passenger service agent. I am now a labor relations expert with
hundreds of cases to my credit. My experience includes Railway
Labor Act.
I am proud of the fact that I started my professional life
driving the lavatory services truck, or what we affectionately
called the honey wagon. Experience gained in that job and other
positions I previously mentioned gave me character and
appreciation of teamwork I value today. Although I did not make
a lot of money in this entry-level position, I appreciated the
job and grew and prospered.
I am here solely representing myself, and not on behalf of
any airline or airline vendor. My testimony will focus on what
I perceive this hearing to be about, as it covers several
different topics listed below: number one, tarmac safety as it
relates to staffing and the environment; number two, economics
of airline vendors and regional airlines as small, medium, and
large markets; and number three, Railway Labor Act and unions
who are frustrated about how negotiations work through the
National Mediation Board.
The tarmac, which we commonly refer to as the ramp, every
piece of equipment is staged and moves in preset fashion.
Airplanes always have the right of way. The ramp is monitored
and kept clean, as even a small bolt can be sucked into a jet
engine, causing damage.
These challenges are known, and the airlines account for
them and train for them with safety as the primary focus.
The number of personnel it takes to work a plane from taxi-
in push-out is based on the equipment size. In an industry
where on-time performance is measured and subject to public
criticism or potential fine, staffing properly is essential.
Most airlines operate what is known as a hub-and-spoke
route system. Different airlines have picked high-volume cities
as their hubs. The hub city can be a thriving, robust
operation, whereas a small market may not have enough business
to staff a full complement of ground employees. Therefore,
airlines rely on subcontractors and/or regional airlines to
fulfill the operation.
We are currently in a time where we enjoy the best
unemployment rate in our Nation's history, around 3\1/2\
percent. Therefore, the demand for employees is very
competitive. The market will generally find its own value.
Earlier, Dr. Callaci spoke on the negative impact of
outsourcing. Dr. Callaci uses a report he authored, ``Fissuring
in Flight,'' as evidence. After reviewing the report and back-
checking some of the data presented, I found his body of work
to be unpersuasive, overgeneralized, and at times misleading.
For time purposes, the committee will need to refer to my
written statements for the examples.
There are many inaccuracies in the report. I take no
pleasure in disparaging anyone's hard work, but I do believe
inaccuracies should not be shared with this committee.
Additionally, I would caution reliance on this report by the
committee for the purposes of taking any kind of legislative
action without a more comprehensive assessment of its validity.
Labor relations in America's railroads and airline industry
are regulated under the Railway Labor Act. The act was passed
by Congress in 1926 and expanded in 1936 to include airlines.
In order to avoid disruption of America's transport network
through strikes and other kinds of work stoppages, the act
imposed mandatory mediation and gave the President the ability
to order workers back to work. Like the National Labor
Relations Act, the Railway Labor Act allows unions to organize
workers for the purpose of negotiating a collective bargaining
agreement, as the workers' exclusive representative.
Right to work does not exist under the Railway Labor Act.
And, until recently, there was no mechanism for airlines and
railroad employees to decertify a union. The previous
administration changed the voting rules in how votes were
counted to allow easier unionization.
In conclusion, I urge you to concentrate on the following.
Ramps are dangerous, and airlines should never cut corners
with safety, and should always be looking for a better way.
Airlines may have a solid grasp on what it takes to continue
safe operations.
Number two, outsourcing and regional airlines are highly
important pieces of America's transportation network. They are
not replacing mainline jobs, but rather filling jobs that would
not exist otherwise, but for outsourcing.
Number three, the Railway Labor Act is the law of the land
to protect employees' rights and ensure America's commerce
continues without disruption.
Number four, finally--and although I did not discuss this
earlier--corporate campaigns have become the model and practice
of labor unions like the Service Employees International Union
and UNITE HERE. Such corporate campaigns typically involve
generating negative media or public attention against a
company. In the case where a company is a subcontractor, the
negative attention is usually directed against better known
contracting companies like airlines to increase union leverage
at the bargaining table. The system only works if both sides
live up to their legal obligations to negotiate in good faith
in the National Mediation Board.
Let's continue to do this job, and mediate to a resolution.
In my experience----
Mr. Larsen. Thank you, Mr. Brown.
Mr. Brown [continuing]. If self-help, which is the
terminology that the Railway Labor Act uses for a strike, does
occur, there are no winners. Thank you.
[Mr. Brown's prepared statement follows:]
Prepared Statement of Russell Brown, Chief Executive Officer, RWP Labor
Chairman Larsen, Ranking Member Graves, and distinguished
subcommittee members thank you for having me here.
My name is Russ Brown I am a retired airline employee with 25 years
of service. I have worked in airline operations in both above wing and
below wing capacities. I have done most of the jobs we are talking
about here today; I've worked below the wing in lavatory service, water
service, baggage handling, and air freight and above the wing as a
ticket counter agent, gate agent, and passenger service agent. I am now
a labor relations expert with hundreds of cases to my credit. My
experience spans working in the jurisdictions of the National Labor
Relations Act and the Railway Labor Act. I am proud of the fact that I
started my professional life driving the lavatory services truck, or
what we affectionally called the honey wagon. The experiences gained in
that job, and the other positions I previously mentioned, gave me
character and an appreciation of teamwork I value today. Although I did
not make a lot of money in the entry level position, I appreciated the
job, grew and prospered. I am here solely representing myself and not
on behalf of any airline or airline vendor.
My testimony will focus on what I perceive this hearing to be
about, as it covers several different topics listed below:
1. Tarmac safety as it relates to staffing and environment.
2. Economics of Airline Vendors and Regional Airlines in small,
medium and large markets.
3. Railway Labor Act and unions who are frustrated about how
negotiations work through the National Mediation Board.
The tarmac, which we commonly refer to as the ramp, while it can be
a hazardous environment and has a specific flow to its operation.
Imagine yourself working where you are deprived of one of your five
senses. You are wearing earmuffs that are required Personal Protection
Equipment (PPE) to protect you from hearing loss. Some of you from time
to time may want to wear hearing PPE's in this very room. Every piece
of equipment is staged and moves in a preset fashion. Airplanes always
have the right of way. The ramp is monitored and kept clean, as even a
small bolt can be sucked into a jet engine causing damage.
These challenges are known and airlines account for and train for
them with safety as the primary focus. The number of personnel it takes
to work on a plane from taxi-in to push out is based on time and
equipment size. For example, an Airbus A320 carries approximately 240
passengers while an Embraer 145 carries approximately 50 passengers;
each will have different staffing requirements. In an industry where
on-time performance is measured and subject to public criticism or
potentially fines, staffing properly is essential.
Most airlines operate what is known as a hub and spoke route
system. Different airlines have picked high volume cities to be their
hubs. The major air carriers may have several hub cities within their
route system. For example, an airline may have a market to transport
passengers from Columbus, OH to Seattle, WA. However, there may not be
enough passengers originating in Columbus to justify a non-stop flight
to Seattle. But an airline can fill a plane in Columbus with passengers
going to Seattle and several other locations they serve around that
same time period. The airline will then fly the Columbus originating
passengers to a hub city where the airline has lots of other planes
coming from many small, medium, and large market originations and
connect to planes that will fly them to their final destination,
including Seattle in this example. The hub cities can be a thriving
robust operation, whereas the small markets may not have enough
business to staff a full complement of ground employees. Therefore, the
airlines rely on subcontractors and/or regional airlines to fulfill the
operation. You should note there are some markets so small that they
would not have air service but for Federal subsidy under the Essential
Air Service program.
We are currently in a time where we are enjoying the best
unemployment rates in our nation's history, with a topline figure
around 3.5%. Therefore, the demand for employees is very competitive.
The market for employees will generally find its own value. Earlier,
Dr. Callaci spoke on the negative impact of outsourcing. Dr. Callaci
uses a report he authored, ``Fissuring in Flight'' as evidence. After
reviewing the report and backchecking some of the data presented, I
found his body of work to be unpersuasive, overgeneralized, and, at
times, misleading.
For example, the report states that there are only 25,000
``legacy'' pilots at American, Delta, and United. In reality, that only
counts pilots operating domestic routes, ignoring the 13,000 other
pilots who operate international flights. It also ignores the more than
20,000 pilots who work for the other five largest airlines in the
country. And it ignores the ever-growing demand for pilots in all
industry segments, including regional, cargo, and mainline. For
example, Delta Air Lines announced it is planning on hiring and
training 1,300 pilots this year and 8,000 over the next decade.
Additionally, the report discusses the contracting of American
Airlines wheelchair pushers in Miami. Unfortunately, simple chronology
does not fit with the underlying narrative. The report suggests the
wheelchair pushers were contracted out to save money and then brought
back in house when a living wage ordinance was implemented to take
advantage of the airline exemption in the ordinance. Here are the
facts: in the 1990's, American Airlines made a decision to outsource
wheelchair pushing services in their Miami operation. The contract was
awarded to a vendor Eulen, which later became subject to ``Miami-Dade
Living Wage Ordinance implemented in 1999. This ordinance was for
airport vendors and exempted the airlines. American operated under this
construct for 20 years until contract performance issues prompted it to
put the contract out for bid in 2019. The contract was awarded to
American's subsidiary, Envoy Airways, which has been unionized by CWA.
In other words the contract went from a non-union company (Eulen) to a
unionized company (Envoy).
The report's discussion about total air transportation employment
is also misleading as it proports to be discussing the outsourcing of
the jobs we are talking about today. In reality the category used in
the report, ``Support Activities for Transportation,'' excludes baggage
handlers, caterers and janitors. That category is defined as employees
`` . . . engaged in providing services to the air transportation
industry'', which include services relating to airport operations,
servicing, repairing, maintaining and storing aircraft and ferrying
aircraft. The more appropriate category to use would have been NAICS
code 488119, which counts employees of ``establishments primarily
engaged in (1) operating international, national or civil airports or
public flying fields or (2) supporting airport operations, such as
rental of hanger space and provide baggage handling and/or cargo
handling services.'' Additionally, food services at airports are
classified under NAICS code 722310 while aircraft janitorial services
are classified under 561720.
There are many more such inaccuracies in the report. I take no
pleasure in disparaging anyone's hard work, but I do not believe
inaccuracies should be shared with this Committee. Additionally, I
would caution reliance on this report by this Committee for the purpose
of taking any kind of legislative action without a more comprehensive
assessment of the its validity.
Labor relations in America's railroad and airline industries are
regulated under the Railway Labor Act (RLA). The Act was passed by
Congress in 1926 and expanded in 1936 to include airlines. In order to
avoid disruptions to America's transport network through strikes and
other kinds of work stoppages, the Act imposed mandatory mediation and
gave the president the ability to order workers back to work. Like the
National Labor Relations Act (NLRA), the RLA allows for unions to
organize workers for the purpose of negotiating a collective bargaining
agreement as the workers' exclusive representative.
However, while the NLRA allows unions to organize on a location-by-
location basis, under the RLA, a bargaining unit must include all the
workers of the same classification throughout an entire company.
Railways and airlines are network industries, with capital investments
stretching across several states or even the entire nation. By
requiring unions to organize on a companywide basis, the RLA helps to
avoid the creation of a patchwork of work rules that piecemeal
unionization at specific facilities would bring. Balkanized work rules
detract from the standardization and economies of scale upon which
network industries rely. ``Right to Work'' does not exist under the RLA
and until recently there was no mechanism for airline and railroad
employees to decertify a union. The previous Administration changed the
voting rules in how votes were counted to allow easier unionization.
While Congress did not ultimately reverse that rule, it did restore
some balance to the unionization process in 2012, leaving the RLA as a
solid foundation on which our national transportation systems can
depend.
In conclusion, I urge you to concentrate on the following facts:
1. Ramps are dangerous and airlines should never cut corners with
safety and should always be looking for a better way. Airlines may have
a solid grasp on what it takes to continue safe operations, but when
tragedies happen like what happened to young Mr. Hudson, the question
``is there a better way'' should be closely examined.
2. Outsourcing and regional airlines are highly important pieces
in America's air transportation network. They are not replacing
mainline jobs but rather filling jobs that would likely not exist
otherwise but for outsourcing.
3. The RLA is the law of the land to protect employee rights and
ensure America's commerce continues without disruption.
4. Finally, although I did not discuss this earlier, corporate
campaigns have become the model and practice of labor unions like the
Service Employees International Union and Unite Here. Such corporate
campaigns typically involve generating negative media or public
attention against a company, often using accusations with government
agencies or officials, especially during ongoing labor negotiations or
disputes. In cases where a company is a sub-contractor, the negative
attention is usually directed against the better-known contracting
company, like an airline, to increase union leverage at the bargaining
table. The system only works if both sides live up to their legal
obligation to negotiate in good faith, and the NMB must continue to do
its job and mediate to a resolution. In my experience, if ``self-
help,'' which is the terminology that the RLA uses for a strike, does
occur, there are no winners.
Thank you and I'm happy to answer any questions you may have.
Mr. Larsen. Thank you, Mr. Brown. Thanks. I am going to
open up questions now from Members. We will go in order, and I
will start and recognize myself for 5 minutes.
First off for you, Commissioner Higgins, we have heard a
lot today. But what can Congress do to help local jurisdictions
like Miami-Dade County tackle some of the problems that you
have outlined from your own investigation?
Ms. Higgins. Well, certainly we appreciate all the work of
OSHA, because often, as we know, we hear stories from workers,
and we can't verify them on our own. You can't verify them, I
can't verify them. But the Federal Government coming in and
making sure that, when we are hearing tales of this, we are
actually believing them, we are then verifying that they are
true. That was extremely helpful to us at Miami International
Airport. So we went from storytelling to fact verification
because we had the official citations.
The other thing that I think is really important, as you
can see, is we are sometimes shuffling workers back between
subcontractors and airline subsidiaries, all trying to figure
out how can we get the lowest wage going.
At the municipal and local level, sometimes it is very hard
for us to require airline subsidiaries--and certainly for
airlines subcontractors--to comply with living wage standards,
particularly when airports are on public property, right?
So Miami-Dade County, for example, if you are contracting
with us, we have a living wage because we think that is what it
takes to keep people out of our public hospitals, out of the
lines for affordable housing, you know, off the rolls for SNAP
benefits. And we struggle very, very much to have airline
subcontractors, as well as airline subsidiaries, comply with
those.
And we all know this is an extremely diverse country. In
the State of Florida, of course, we have got very inexpensive
places to live and very expensive places to live. And Miami,
unfortunately, is one of those spots where it is pretty pricey.
So the idea of getting to what we have, and our living
wage, is a package of around $15 an hour, whereas if you don't
provide health insurance, it is at least $15 an hour. And if
you do, you can pay a little less than that. That is what we,
as elected officials, believe people can start to pay their
rent at. And right now we are not always able to make that
happen. Thank you.
Mr. Larsen. Thank you. Ms. Patrick-Cooper, I was concerned
to learn that UNITE HERE in 2018, with your survey that you
cited, found that the rate of uninsured airline catering
workers in Seattle was the third highest among 21 major cities.
Can you comment on why some cities lead others in the survey?
Ms. Patrick-Cooper. Sure. So the survey was taken of
several of our members in various cities. And one of the things
that we reiterate and say over and over again, these--it is a
vicious circle, because they are low-wage jobs, and
unaffordable healthcare.
So, as a result of that, many of our members, they tend to
rely on Government-funded programs for their healthcare. Many
of them are uninsured. Many of them--as I say with the vicious
circle, is a low-wage job, you have to get to work, you have to
provide for your family. And, as a result of it, some of them
still go to work sick, some skip medical care for themselves,
others work multiple jobs. One of our members in Detroit,
Shondalyn, works with one of the subcontractors and another
employer in the airport to be able to pay for healthcare for
her and her child.
Many of them travel out of the country to get healthcare
because it is unaffordable here in the United States, which--
you know, someone working here in our country and having to go
to another country to get affordable healthcare. And other
Government-funded programs that they rely on are food stamps.
So it tends to be a vicious circle, and it is like a bleeding
that we just cannot plug up.
It has to be fixed, and we feel very confident that the
airlines really--they do have a horse in this race. They can do
something about this. They just have to have the will and the
want to do it, because these are--as I said earlier, some
members have worked for decades.
You know, 9/11 came and, as a result of it, the airlines
have bounced back. We have heard in the report earlier on the
profits that they are making. But our members are still left
behind, and they are suffering like today is still 9/11. Thank
you.
Mr. Larsen. Thank you very much. Thank you. We will turn
now to Ranking Member Balderson.
You are recognized for 5 minutes.
Mr. Balderson. Thank you, Mr. Chairman. Thank you all for
being here this morning. My question is directed to Mr.
Harrison.
Mr. Harrison, thank you for your testimony this morning.
You claim that the contractual flexibility airlines have allows
them to enter new markets and enhance competition. You argue
that, without this market balance, service to some communities
would no longer be economically or operationally feasible.
In your opinion, what communities would lose service and
would be hit the hardest if airlines were not able to contract
with other airlines or service providers?
Mr. Harrison. Thank you, Congressman, for your question.
Obviously, I don't have a specific list at hand. The impact
will be felt, I think, at most by the smaller, regional
airports: Tupelo, Mississippi; Fort Wayne, Indiana. All those
smaller airports, you know, typically it is a lack of
frequency. If they were not allowed to subcontract, and they
were not allowed to use contractors, airlines couldn't do it
efficiently. And essentially, you are not going to fly
somewhere you are going to lose money at.
There are Government programs like the Essential Air
Service and those sorts of things. But typically, smaller
cities don't allow as much frequency, and you can't really
effectively do that. I can certainly get you additional
information, if you would like, on that. But the smaller
communities and maybe even some mid-sized markets might lose
service altogether, or there might be a loss of frequency, or
the change in the amount of the number of flights that come in
and out of there each day.
Mr. Balderson. I appreciate that. If you could get some
stuff to our office on that, please.
Mr. Harrison. Thank you.
Mr. Balderson. My followup question to you is, in your
testimony you say that airlines take great effort to comply
with Federal, State, and local laws. You also mentioned that
airlines routinely monitor the practices of their airport
ground service contractors.
Can you expand on the processes airlines have in place to
actively monitor the practices, working conditions, and
services that are provided by the contractors, please?
Mr. Harrison. Certainly. Thank you.
First of all, that language is typically written into the
contracts that the airlines have with the service providers.
First of all, they have to comply with all Federal, State,
local laws. That includes wage and hour laws, that includes
safety laws, that includes OSHA, all the applicable laws that
apply, that is written into the contracts.
What airlines typically do, as a broad issue, is they will
go out and monitor. They will audit. So airlines usually have
fairly substantial quality assurance programs that monitor
themselves, as well, and these quality assurance individuals
and auditors will go observe conditions, and look to see if
they find anything.
If they do find an issue, those are typically addressed.
Again, in the airline industry, it is a human endeavor, and
there are going to be issues that you may find. Not everything
is perfect. But when you do find things, that is part of the
continuous improvement. You see something, you see an issue
specifically, or you see a trend, and you immediately address
it.
There are also ways for employees to come forward and bring
those issues, and that includes both internally and also even
with the agencies, you know, the employees. We have talked a
lot about OSHA and their coming onto properties and doing
certain things. I think that is a good example of OSHA doing
their job. Employees can go to OSHA, can raise issues. OSHA can
come out, and they have the power to fine employers, and deal
with those issues and try to get those resolved.
Mr. Balderson. Do you feel there is anything more that the
airlines themselves--that they can do, and kind of take that
initiative before OSHA has to come out?
Mr. Harrison. They do. And I think the airlines--and I
didn't mean to imply that the airlines are just relying on OSHA
to do that job. They go out, and they monitor, and they go
audit, and do that regularly.
Mr. Balderson. OK. Thank you very much.
Mr. Chairman, I yield back my remaining time.
Mr. Larsen. Thank you. I recognize Chair DeFazio for 5
minutes.
Mr. DeFazio. Thank you, Mr. Chairman.
To Mr. Brown, you talked about unions engaging in this
distorted kind of corporate campaigns that corporations often
use to bust or prevent unions. Do you think that what we heard
from the commissioner, and from the workers, and the OSHA fines
that Eulen was just doing a great job, and they were just
smeared by a corporate campaign?
Mr. Brown. Sorry, I can't speak to any individual
situations like that. I am unfamiliar with the----
Mr. DeFazio. Right, but you were broadly brushing the
unions as engaging in these distorted corporate campaigns, and
what we have here are OSHA fines, documentation. That was a
pretty broad brush.
And you also, of course, wanted to pick some points with
the economist on the panel. And I would note that the Airbus is
not certified to carry 240 people. If they are putting 240
people on one of those things, I want to know about it, because
they would be outside their certificate. So thanks for that.
Dr. Callaci, $31.3 billion of share buybacks. Now, who
benefits the most from share buybacks?
Mr. Callaci. Who benefits from share buybacks are people
who own shares, which are disproportionately--even including
the beneficiaries of pension funds--are disproportionately
wealthy. So it is a redistribution of wealth to people that
already have a bit of it. And it also leaves less money. There
are reams of social science research on this, particularly from
Bill Lazonick at UMass Lowell on how it leaves less money for
investing in things like employees, and skills training, and
new technologies.
Mr. DeFazio. Right.
Mr. Callaci. Yes.
Mr. DeFazio. So do--like these airline corporate CEOs, do
they generally vest it with shares?
Mr. Callaci. Right----
Mr. DeFazio. So would they be beneficiaries of their own
buybacks?
Mr. Callaci. Right, so that is the other part. Because
executive compensation has become so skewed towards
compensation in shares and share options, it is a way of
compensating executives.
I mean I think I also want to draw just----
Mr. DeFazio. Is that a way of avoiding taxes? I mean,
what----
Mr. Callaci. Well----
Mr. DeFazio. As opposed to paying them a higher salary?
Mr. Callaci. Well, so yes. So there is different--exactly.
There are different tax treatments of different types of
compensation. Incentive pay, being paid in shares, is one of
the ways that that is incentivized.
I should also point out that, unlike even dividends, which
are another way to reward shareholders, buybacks don't reward
long-term investors. They reward people getting out. Right?
They are buying the shares back. They are not giving it as a
reward to long-term investors.
Mr. DeFazio. OK. And then to Ms. Patrick-Cooper from UNITE
HERE.
You talked about the mediation with LSG Sky Chefs. When did
this negotiation start?
Ms. Patrick-Cooper. So one of the things we appreciated of
the mediation process that we are going through right now are
the mediator's efforts to bring both sides to an agreement. But
in reality, this takes years. And this is a hardship,
specifically, for low-wage workers. It comes across as a heavy
burden.
So our goal is to escape poverty, not to disrupt travel.
So, you know, by getting released from the RLA mediation
process, we believe that that is the only path to settlement
for us.
Mr. DeFazio. So you would have more flexibility to take
more decisive action if you weren't----
Ms. Patrick-Cooper. Absolutely. By being able to enforce
our First Amendment right.
Mr. DeFazio. Yes? OK.
Ms. Patrick-Cooper. Yes.
Mr. DeFazio. Thank you. Thank you, Mr. Chairman. I have
another meeting, but thank you.
Mr. Larsen. OK, thank you, Mr. Chair. The Chair recognizes
Representative Smucker from Pennsylvania for 5 minutes.
Mr. Smucker. Thank you, Mr. Chairman.
Thank you, Mr. Barrios, for being here to share your story.
I was in the construction industry for years, and it can be
a dangerous job as well if proper precautions are not put in
place, and as an employer in the industry, we were focused on
ensuring the safety of our employees.
We had individuals coming, leaving their families, working
at our job site every day, and we wanted to ensure they went
back in the same shape or better shape home to their loved ones
every single day, and so we took it personally when there was
an injury that affected the lives of one of our employees.
I do not know Eulen. I have no idea. In fact, I do not know
if the chairman would want to address this. Was Eulen asked to
be part of this hearing here today?
Mr. Larsen. You can address your comments to the witnesses.
Thank you.
Mr. Smucker. I know. In case you wanted to answer that
question.
Mr. Larsen. I appreciate the opportunity. You can ask
witnesses questions.
Mr. Smucker. OK. Thank you.
I suspect that that may have been the case. I do not know
Eulen, but I can tell you this. There is a reason that this
hearing was not held here for 32 years, because every day there
are hearings along this line in a different venue and in a
venue that would take input from all sides, including the
employer.
And we have laws in place specifically to ensure that your
rights are protected. When there is a bad actor, my experience
has been that employers for the most part really do care about
their employees, about the safety of their employees.
I do not know whether Eulen does or not, but certainly
there is a judicial process in place. There are laws in place
that ensure that bad actors are held accountable.
For instance, you mentioned fresh water. I know in my
experience with OSHA, that that is a requirement. Perhaps this
is a question for Ms. Higgins.
When you saw those kinds of conditions that you described
today, did you complain to OSHA about that?
Ms. Higgins. When I went after my airport tour and I,
indeed, was able to verify that there is no access to water on
the tarmac for anyone working on the ramp no matter how long
they are out there, I wrote a letter to the CEO of Eulen, who
lives in Miami. So he is located there, expressing my concerns,
just asking him to get together with the workers to try to see
if some of these things could be worked out.
I mean, some of them are simple, right? If you were CEO of
Eulen or I were CEO of Eulen, we could figure out how to strap
an Igloo cooler to the back of a truck with a bungee cord like
every construction vehicle.
Mr. Smucker. Were you aware there are laws in place to
address that specifically?
Ms. Higgins. Yes, and it took a little while, but OSHA
finally did come in.
Mr. Smucker. So did you make a call?
Ms. Higgins. I did not make a call.
Mr. Smucker. OK. All right. Clearly, there are laws in
place. There should be laws in place.
Ms. Higgins. Absolutely.
Mr. Smucker. And there is a procedure for employees. And I
understand in some cases employees may feel their job is
threatened, but there are procedures in place to hold employers
accountable when there are bad actors.
And, again, I do not know whether this is the case or not,
but what I do know is this is not a fair procedure to any
company to hold this kind of event without having the
opportunity for them to participate in it as well.
So I am disturbed that this is being presented in this way
without hearing all sides of the situation so that we can make
proper judgments. And it is not being done in the place where
it should be.
Mr. Callaci, is it?
You talked about the idea of contracting with other
entities. So I come from construction. That happens all the
time.
Are you suggesting that is an arrangement that we at the
Federal level should discourage or actually set laws to
prevent?
Mr. Callaci. I absolutely would not suggest that. It is OK
to contract, and there are industries, you know, the
entertainment industry, certainly construction, that work on
that model.
The issue that I point out is, first of all, in this
particular industry contracting out is increasing. So it is not
something that we see at the same level throughout the economic
history of the industry. It has been increasing, and the wages
are lower in the outsourced occupation. So the same job pays
differently depending on whether it is contracted out.
Mr. Smucker. What are your----
Mr. Larsen. I am sorry. The gentleman's time is up.
Mr. Smucker. Thank you very much, Mr. Chairman.
Mr. Larsen. Just to remind folks, it is Dr. Callaci, for
everybody. It has been mispronounced a couple of times. Callaci
is the name. Apparently labor economy is his game.
I recognize Representative Lynch for 5 minutes.
Mr. Lynch. Thank you very much, Mr. Chairman.
And I really do appreciate you holding this hearing. I
think we need to put a spotlight on this issue, and I think
today is one of those days.
Full disclosure for the witnesses: I am former president of
the Ironworkers Union back in Boston. I actually worked 20
years strapping on the work boots. So I am a former union
steward. So I sort of relate to some of the stories I am
hearing out there and the struggle that is out there.
I joined Congressman Brown. He and I were on the picket
line with ``One Job Should Be Enough'' at Reagan National
Airport several months ago and saw a lot of familiar faces out
there during that day of action.
I worked very closely with Brian Lang, who is president of
Hotel Employees and Restaurant Employees Local 26 and UNITE
HERE as well in the Boston area.
I think that in this industry, we have taken away the right
to strike from many workers in a realistic way. So it really is
a question of the relative power of employees to negotiate with
their employer, and it is greatly imbalanced, I think, for most
ground workers at airports.
Again, full disclosure: my brother-in-law works at Logan
Airport in Boston. He is a member of the Teamsters Union. He
drives a truck, and I am familiar with the struggles that they
have on a regular basis just to maintain decent standards,
working standards, good conditions of employment.
Along those lines and also with the food workers and
others, and I firmly believe that one job should be enough, and
the way we are treating our workers there right now at Reagan
National with the food workers, we have not really given people
an opportunity to bargain in good faith with the appropriate
level of power on the part of our employees.
Our Government has a responsibility as well. In many of
these critical industries where public safety is involved and
the operation of a major airport, an international airport is
involved, the industry tells us and the regulator tells us that
this is so important we cannot have workers walking off the job
because they are unhappy with their working conditions.
So we force workers to continue to work even though they
have the right to grieve and bring their complaints. We do not
give them enough power to resolve them.
Mr. Callaci, I know you are a labor economist. You see this
dynamic in this industry. I think you are keenly aware of the
issues here.
How might we rebalance this so that the industry actually
listens, that the regulators actually listen, the employer
actually listens to the concerns of the worker?
Because I think that is at the heart of this. People are
not listening, and I know there are laws on the books, and the
gentleman on the other side of the aisle is right. There are
laws on the books, but getting those laws to work on behalf of
the people they were meant to protect is quite another issue.
So if you could just illuminate some of the problems that
you see in this struggle.
Mr. Callaci. Sure. And right before I answer that I just
want to just point out that Mr. Brown made some comments about
inaccuracy, I just remember, in my report. At some point if we
could get to it, I would love to speak to those and learn more
about what they are.
I do not think there are any inaccuracies in the report. I
was pretty careful.
But anyway, to answer your question, I am going to speak in
broad terms, not super detailed policy proposals because I am
an economist here, not a policy specialist.
But clearly, what has happened here and it has happened in
other industries in the economy is that the traditional, firm-
level collective bargaining, establishment-level collective
bargaining regime has broken down. When a job is outsourced,
the walls, basically the boundaries of the firm access sort of
a wall around where the profits are.
So who is the most profitable entity in the airline
industry? It is the legacy carriers. The more work that is
outsourced, that means that workers at those outsourced
companies cannot collectively bargain over or access those
enormous profits that are sitting at American. They are going
to the shareholders or they are going to the executives.
And some of them may be even shared with direct employees,
but the problem is or to diagnose the problem as I see it, when
we have a firm-level collective bargaining regime that does not
allow workers to bargain with the entity or to have some
countering power against the entity that really controls their
working conditions, it is not working anymore. And there needs
to be some way to restore worker voice and some countervailing
power in the industry.
Mr. Larsen. Thank you.
Mr. Lynch. Thank you, Mr. Chairman. I yield back.
Mr. Larsen. I recognize Ranking Member Mast for 5 minutes.
Mr. Mast. Thank you, Mr. Chairman. I appreciate it.
Ms. Patrick-Cooper, I would like to have a conversation
with you. I choose you really for no other reason than I
thought you spoke most passionately, and I enjoy speaking to
people that speak passionately, even if we do not agree on
everything. We know that we both care, and so it is for that
reason that I want to have a conversation with you on this
issue.
One of the things that stuck out in your remarks and I want
to give you an opportunity to clarify is that you said that one
job should be enough. Somebody should only have to work one
job.
Now, I just want to know. So you clarify for yourself. You
only want somebody to have one job or it is just your belief
that any one job, any job, that exists out there has to be
enough to pay every bit of a person's life needs?
Ms. Patrick-Cooper. Yes. Thank you very much for that
question.
I mean, to reiterate the core of it is that everyone who
goes into a workplace, they are going there to keep roof
overhead, to put food on the table for someone, to put clothing
on their back.
And if you have a family and you are working multiple jobs,
it bears down on your family breakdown because you are not
there with them, and you cannot afford it.
I think as I said earlier, this is a vicious circle, not
being able to take care of themselves, their medical needs, not
being able to take care of their children's medical needs, and
one good job with decent wages and affordable healthcare, I
mean, for folks who are living here in America, that should be
our American dream.
Mr. Mast. Any one job that exists in this country should
pay the total needs for any person, any family.
Ms. Patrick-Cooper. Absolutely. Workers should not have to
be working multiple jobs, skipping family care, skipping
medical care, having to go to another country for medical care
because they cannot even afford it in our country.
And that is our premise in all of the bargaining that we do
for our members. Our goal is to raise the standards for wages
and benefits so our members can really work in dignity and be
able to take care of their family needs.
Mr. Mast. Do you believe personally that level of skill
should correlate to somebody's wage?
As an example, one of my first jobs was working in a
carwash. It was cold. It was in Michigan. I was really doing
nothing other than operating a pressure washer gun to spray
debris off of vehicles, a totally different skill level than
what I needed when I was in the military.
So just a simple question: should wage be correlated to
skill level?
Ms. Patrick-Cooper. So I, too, started out as a rank and
file worker, and one of the things we do know is that when we
start into entry-level jobs, as the question you are asking
right now, the wage would correlate to that, but have someone
having an opportunity to continuously make a living because at
the end of the day, the workers are the ones that are at the
lower end of the profits that the company is making. They are
the ones that are really doing it.
So your question is the wage level. It should correlate to
it, but it should be a decent living wage.
Mr. Mast. But it should correlate to skill level.
Ms. Patrick-Cooper. Correct. And in all of our collective
bargaining agreements, we have different classifications that
are on different wages, as the question that you are asking.
Mr. Mast. Did it correlate to applicable education?
Ms. Patrick-Cooper. You said education?
Mr. Mast. Yes. Should your wage correlate to applicable
education based upon the work that you are doing?
Ms. Patrick-Cooper. So in our job skills, it is about the
experience and knowing how to do your job. You can have someone
who does not have a high school diploma who can do the work
just as well as someone with a college degree. So it is about--
--
Mr. Mast. With some jobs.
Ms. Patrick-Cooper. Yes. It is about the skills, ability to
do the job, because everyone is able to be trained. If a
company has put training programs in place, almost anyone can
do the job if a company has a training program in place to give
them quality training.
Mr. Mast. So you do not think it should apply to applicable
education, given the job?
Ms. Patrick-Cooper. It depends, but at the end of the day,
we need to be sitting down with employers to make sure that we
are part of making sure what that wage rate should be. We do
not want someone to have to work three or four part-time jobs
because of the employer saying they do not have X amount of
education.
So the company in its bargaining process should be with us
to figure this out because we are not going to bargain a job
for someone to not be able to at least have a living wage.
Mr. Mast. What about work ethic or attitude?
Ms. Patrick-Cooper. As a?
Mr. Mast. Work ethic or attitude, should wage be correlated
to work ethic or attitude?
Different people work at different levels of output,
depending upon their attitude, how they feel in life. Not
everybody works the same.
Ms. Patrick-Cooper. No, and at the end of the day, one
thing I can say. What we really truly believe in, if you have
the skills to do the job, your pay should be based on that.
Mr. Mast. Thank you for the time, Mr. Chairman.
Mr. Larsen. Thank you.
The Chair recognizes Representative Brown for 5 minutes.
Mr. Brown. Thank you, Mr. Chairman.
I want to thank the panelists today for sharing your views
and perspectives with the subcommittee.
Last July, along with my colleagues and I think the
chairman mentioned this in his opening remarks, we passed the
Raise the Wage Act, which would gradually raise the Federal
minimum wage to $15 an hour. This important legislation will
provide more than 33 million Americans with a wage increase,
boosting the economy, narrowing the wage gap, and lifting 1.3
million Americans out of poverty.
I firmly believe that good wages are just one component to
ensuring long-term prosperity for our communities. I think
things like job certainty and security, good job training which
goes to up-skilling, and providing even greater wages are
important.
Affordable healthcare benefits, sound retirement plans, all
ensure that Americans have the tools to succeed and provide for
their families.
And I understand that some of the panelists have ongoing
contract negotiations, and as Members of Congress, I think that
we need to be mindful that those negotiations are private, but
also that we need to address these issues in a fair and
balanced manner.
I just come at it from a different perspective, but I think
these priorities that I just mentioned that have been discussed
by others should be considered both in private negotiations as
well as the work of Congress.
And it would be my expectation that these priorities, these
values would be incorporated in the conversations, the
negotiations, the outcomes of those negotiations, and the work
of Congress.
Ms. Patrick-Cooper, I would like you to talk a little bit,
and I apologize if you did when I was out of the room. As you
know, many Members of Congress are bouncing back and forth
between multiple hearings, but I would like for you to talk a
little bit about facility modernization and the workforce
experience for your members.
We are moving into the 21st century, and we should ensure
that facilities and working conditions reflect that. Can you
provide insight in the typical working conditions that catering
workers might face and some of the challenges they encounter on
a daily basis?
What improvements would caterers like to see in the
workplace to enhance their productivity, but also worker
morale? And we know that good wages and benefits ensure long-
term prosperity.
What else would the caterers like to see in regard to
modernization in infrastructure?
Ms. Patrick-Cooper. So I think I want to make sure I
understand the question you are asking correctly, but so----
Mr. Brown. In short, what investments need to be made in
the facilities to increase productivity and morale and improved
working conditions?
Ms. Patrick-Cooper. Yes. So we do know that our members,
since 9/11 and the profits that have gone up on the one side
versus the workers, that in itself plays a big key piece in the
morale. When the workers are knowing that they are doing more
work and are not reaping the benefits, the profits that the
company is making.
So as far as the morale goes, that is in the temperature of
the workers.
But one thing we do know we could speak on is that the
workers in the airline industry, they are the worst treated.
The airline catering, I am sorry. Excuse me. They are the worst
treated, and they are earning the least amount of wages within
this industry.
And the training that our members are getting, when they go
into these jobs, there are two different ways that our folks
are. They are producing, assembling food to go on the planes,
and then we have our other members who are driving these trucks
to deliver the food from this facility onto the plane.
And our members are proud. I mean, they have still been
there even since 9/11. I made a reference to Shondalyn behind
me earlier. She has been working in Detroit at that airport for
9 years, and she has had to get a second job in that airport
with another employer.
Her morale, her personality, she comes in every single day,
has a 13-year-old daughter who she is providing for and taking
care of. Even in spite of these working conditions, she is
showing up every single day and doing exactly what her employer
is asking her to do, and she is taking on the second job to
make sure that she is able to take care of her daughter.
I hope I answered your question.
Mr. Brown. Yes, you did.
Ms. Patrick-Cooper. Thank you.
Mr. Brown. I yield back.
Mr. Larsen. Thank you, Representative Brown.
I recognize Representative Fitzpatrick for 5 minutes.
Mr. Fitzpatrick. Thank you, Mr. Chairman.
Thank you to all of the panelists for being here for
lending your expertise. We really do appreciate it.
I wanted to loop back to the subject of healthcare. Ms.
Patrick-Cooper you are getting a lot of the questions today,
but you did reference this in your statement. So I want to
address it.
If you could, just expand upon that for the committee,
where the gaps are specifically with the bargaining process,
and if companies will not bargain a fair agreement with you and
your workers, would not the next step be for the National
Mediation Board to release you and the employers for mediation?
Ms. Patrick-Cooper. Thank you for that question.
And you are right. We are in mediation with both Gate
Gourmet and Sky Chefs, and we are very appreciative of the
mediators' efforts to bring the sides to an agreement.
But you know, because it is the Railway Labor Act, there
are certain work actions that we are prohibited to do because
of the law, and this process can take many years. And for low-
wage workers, this is a heavy burden going through this process
and hoping that we can get to an agreement on both sides.
Our goal out of this is for our members to escape poverty.
We do not want to disrupt travel. What we are asking for is a
release from the RLA mediation process so we can exercise our
first constitutional right. We feel that that will be the only
path for us to get to a settlement, instead of this process
that we know can take many years.
Mr. Fitzpatrick. Thank you for that, Ms. Patrick-Cooper.
Mr. Harrison, in your opening statement, you had mentioned
commercial aviation's participation in the OSHA ground safety
study that occurred, I believe, from 2008 to 2018. If you
could, share with the committee some of the positive results of
that panel.
And how did the industry work with the relevant partners in
labor, specifically, TWU?
Mr. Harrison. Certainly. Congressman Fitzpatrick, thank you
for your question.
I think that was important to note, that it was a
collaborative effort. It was not just the airlines showing up
and saying, ``This is the way things needs to be done.'' They
were working with the unions, with the RAA, with the ground
service contractors some of which, you know, are kind of being
talked about generally today, and I think it was a very good
collaborative effort.
What came out of it was a number of things, and again, it
was over a 10-year period. They developed approximately 15 what
are called toolbox talks and fact sheets that discuss best
practices for using things like belt loaders and tugs, carts,
pushback vehicles, high-lift trucks, and these are things that
can be used in day-to-day operations.
So when you go onto a shift, you can talk about and remind
employees here are the things you need to be careful of and
watch out for.
There is also the development of five guidance documents,
including those on cold and heat illness identification,
distracted driving on the ramp and on airport roadways, and on
the functions of airline vehicles.
There was also a case study done on the hazards associated
with the operation of high-lift box trucks, and again, this
information was distributed and some of the materials that came
out were distributed to over 1.6 million individual employees
over the course of that work.
So A4A is very proud of it, as I think is OSHA and the
other members that participated, including the unions.
Mr. Fitzpatrick. Thank you, sir.
Mr. Chairman, I yield back.
Mr. Larsen. Thank you, Representative Fitzpatrick.
I recognize Representative Stanton for 5 minutes.
Mr. Stanton. Thank you very much, Mr. Chairman. I do want
to say thank you for holding this important hearing.
With the level of Federal investment that we have in our
Nation's airports, including the airport that I used to lead as
the mayor of Phoenix, Sky Harbor Airport in Phoenix, with the
level of investment that we have and the level of investment
that we will be making, we hope, in the near future, we do have
a great interest in learning about the working conditions of
people that work at our Nation's airports, both public and
private.
So I think that this hearing is very appropriate, and as a
Member of Congress, getting educated about those working
conditions is very important to me.
First, Mr. Callaci, you indicated earlier that maybe you
wanted a chance to respond to Mr. Brown and you did not have a
chance to fully respond. I wanted to give you the opportunity
now if you wanted to take it.
Mr. Callaci. Well, we have not spoken to what the
inaccuracies were. Could I yield to Mr. Brown?
Mr. Stanton. Oh, yes. I am sorry. I will save that for
another time. I thought you had a specific question regarding--
--
Mr. Callaci. I can respond to the written testimony if that
would be appropriate.
Mr. Stanton. That is all right. I just wanted to make sure
you get a full opportunity to provide testimony if you wanted
to respond to anything in particular.
One of the unique issues we are facing in Phoenix
unfortunately is extreme heat as it relates to climate change
and climate change-related issues. Unfortunately, temperatures
are rising, and it makes working conditions very, very
difficult.
So, President Patrick-Cooper, I wanted to have a chance
maybe to talk about that. The folks in the catering industry at
Sky Harbor Airport who are working in that extreme heat, maybe
talk about how that affects their health or whoever would be
appropriate on that question please.
Do you feel comfortable answering that question about the
impact of extreme heat on the working conditions at Sky Harbor
or airports where there is extreme heat? Please.
Just push it once.
Ms. Prophete. Is it working now?
I represent ground handling workers, and we work outside in
Charlotte Douglas International Airport, and we work in 100-
degree temperatures and extreme heat.
I did want to make a reference to what Congressman Smucker
said earlier, that we have OSHA standards and that they can
report to OSHA, but I do want the board to know that OSHA does
not have a heat standard. OSHA does not have a lighting
standard.
In our case, with Kendrick Hudson, when he died in the low-
level lighting at the Charlotte Douglas International Airport,
that is what we are requesting because there are gaps in the
OSHA standards that could protect workers in our group.
Mr. Stanton. OK. I appreciate that. I know it is a unique
consideration, and as we make continuing investments in our
Nation's airports, taking into consideration how we can improve
working standards for those who have to work in situations like
in Phoenix where there is extreme heat is something I will be
looking towards.
Thank you very much. I yield back.
Mr. Larsen. All right. Seeing none on the Republican side,
we will move to Representative Payne from New Jersey.
Mr. Payne. Thank you, Mr. Chairman.
And I just want to also raise what the gentleman from
Pennsylvania, Mr. Smucker, asked about OSHA requirements and
rules on water. We make sure dogs have water, period. We make
sure animals have water. So to think that there needs to be an
OSHA requirement if there is not one is just absurd.
I am probably never going to get to my questions responding
to my colleagues, but also, Mr. Harrison, in your testimony you
paint a very cooperative picture between labor and the
industry. You know, everything seems fairly rosy based on your
outlook.
But I am trying to figure out why all of these people in
red T-shirts are here if things are so rosy. They did not come
from Florida or wherever they have come from just to sit here
because things are rosy.
So that would be my observation. There obviously is some
issue and some problem with what is transpiring between the
workforce and the incredible margins of profits that the
airlines are making. I believe the number was mentioned in the
billions as the profits of the airlines.
So to have people that, yes, the question of skill level,
fine, all of that, blah, blah, blah, but in this country people
should be able to make a living and raise their families. That
is the American way.
And the profits now are getting in the way of that.
Outsourcing is getting in the way of that. That is an issue for
me.
So, Ms. Patrick-Cooper, I am proud to represent New
Jersey's 10th Congressional District, which contains Newark
Liberty International Airport. I am also proud to represent the
nearly 1,500 airport catering workers who are part of your
organization.
And it deeply troubles me to hear from your testimony that
people are working for low wages and cannot afford their
healthcare. I strongly believe that every person in this
country should have a fair opportunity to succeed, and that a
living wage and affordable healthcare are an integral part of
that goal.
What do you believe Congress should do to help these
workers?
And what are the risks if Congress does nothing?
Ms. Patrick-Cooper. Thank you very much for that, what we
feel is a very obvious observation of our members.
What we are asking is for Congress to tell the airlines to
take responsibility for this workforce of airline catering
workers.
We are asking Congress to urge the National Mediation Board
to move us toward release.
And thirdly, we are asking Congress to make sure that the
airlines know that they can solve this problem. They can be
part of lifting these workers out of poverty so they can
actually truly live and feel like they are Americans and live
an American dream, and they just need to have the will to do
it.
So we are asking Congress on all those three levels to help
us in this situation and help our members, which is why you see
these red T-shirt here, because they are here on behalf of many
of our airline catering workers who are much below those wages,
as you just cited.
Thank you.
Mr. Payne. Thank you.
Well, I was part of an action back in Newark Liberty
International Airport in 2012 when there were issues around
baggage workers and catering, and I will continue to strive to
make sure that every American that works hard has the
opportunity to live in this country and benefit from its
greatness.
And with that I yield back.
Ms. Patrick-Cooper. Can I just add that----
Mr. Larsen. I am sorry. We will have to move on to the next
question. Thank you. I am sure you will have opportunities. We
will have a second round perhaps.
I will go with Representative Napolitano, and barring
another person on the Republican side, Representative Titus
will follow Representative Napolitano.
You are recognized for 5 minutes.
Mrs. Napolitano. Thank you, Mr. Chair.
Mr. Barrios, in your testimony, you talk about dangerous
working conditions that the employer, the Spanish company
Eulen, has created. It seems like Eulen has a bad reputation
and a bad record.
Can you discuss further specific safety problems that you
and your colleagues endure or face on the job?
And why has the employer not addressed these issues, or
have they?
Mr. Barrios. Gracias. Thank you for your question.
[Speaking foreign language.] [The following language was
delivered through an interpreter.] In reality----
Mrs. Napolitano. I cannot understand Spanish.
Mr. Barrios. Yes. [The following language was delivered
through an interpreter.] The employer has resolved some of the
issues, but not all of them. They have waited until there have
been accidents or great issues with safety for them to start to
address issues.
The law should not allow for there to be great injuries or
fatalities for action to be taken.
Other problems can continue to exist. Other issues that can
continue to exist are contact with materials that are
dangerous, not enough safety materials like gloves, and the
vaccines like the hepatitis B vaccine.
Mrs. Napolitano. Are those required of the company?
Mr. Barrios. [The following language was delivered through
an interpreter.] I presume that OSHA has asked for them to do
that.
Mrs. Napolitano. When?
Mr. Barrios. [Speaking foreign language.]
Mr. Larsen. Mr. Barrios, even though you are speaking
Spanish, please still speak into the microphone, for the
record.
Mr. Barrios. OK.
Mr. Larsen. Thank you.
Mr. Barrios. [Speaking foreign language.]
Mrs. Napolitano. [Speaking foreign language.]
Mr. Barrios. [Speaking foreign language.]
Mrs. Napolitano. [Speaking foreign language.]
Mr. Barrios. [Speaking foreign language.]
Mrs. Napolitano. [Speaking foreign language.] They have not
done anything to bring it up to date or to address those?
Mr. Barrios. [The following language was delivered through
an interpreter.] In 2019, he supposes that OSHA addressed or
brought up these issues in the fall.
Mrs. Napolitano. Do you know if the same conditions occur
in other airports?
Mr. Barrios. [The following language was delivered through
an interpreter.] For example, here in this room today are
people who have suffered accidents. He says that the trucks
that Eulen operates do not have----
Mrs. Napolitano. Well, if OSHA has required these things to
happen, when are they giving the company to comply with taking
care of the conditions?
Mr. Barrios. [The following language was delivered through
an interpreter.] I don't know the answer. [Speaking English.] I
do not know this answer.
Mrs. Napolitano. Gracias.
Ms. Cooper, would you be able to provide insight with
working conditions currently confronting the caterers on the
job?
Just beyond the low wages, I assume that they are
prevailing in the area, but are they complying?
Ms. Patrick-Cooper. Yes. And specifically at the Dallas hub
as far as working conditions, we have experienced because it is
very hot in Dallas in the summertime, and the trucks that are
driven from where the food is prepared to bring it to the
plane, air conditioning was being ripped out of the trucks, and
our members were driving back and forth in the heat.
About three----
Mrs. Napolitano. Did they take care of those conditions?
Ms. Patrick-Cooper. I am sorry?
Mrs. Napolitano. Did they take care of those conditions or
remedy them?
Ms. Patrick-Cooper. Well, they took care because our
members demanded. Our members went into the boss and demanded
that these trucks be provided with air conditioning.
Mrs. Napolitano. How do you feel this affected the
traveling public?
Ms. Patrick-Cooper. I am sorry. How do I feel it affects?
Mrs. Napolitano. The traveling public, us who fly on the
planes.
Ms. Patrick-Cooper. Yeah. No, we feel that it affects it
very greatly because we feel that safe working conditions
should be something that is very key for our members to be able
to come in and do what is expected and asked of them.
Mrs. Napolitano. Thank you, Mr. Chair.
Mr. Larsen. Thank you.
The Chair recognizes Representative Titus for 5 minutes.
Ms. Titus. Thank you, Mr. Chairman.
And thank all of you for being here. I know you face great
challenges in this industry, and I represent Las Vegas. So that
is a tourist destination that depends on what you all do and
that you are safe on the job, and that translates into a good
experience for our visitors.
We want them to have a good trip from the minute they leave
home until the minute they land. So even if you are not
customer-facing, what you do has a great impact.
One of the areas that I have been concerned about lately is
the safety of travelers with disabilities. We have heard and we
know that there are certain reporting requirements in
legislation that we passed, and this is a growing issue with
the disability community who wants to travel just like
everybody else.
The latest statistics show that airlines lose or damage 29
wheelchairs a day. That is a day, and some of these mobility
assistive devices are very expensive or they are built just to
fit a certain person, and if the person lands and they are not
available, that is going to greatly affect their trip or their
business or why they are going.
We gave the Department of Transportation the authority to
fine airlines, but there has not been a single enforcement
since 2016. The airlines are aware of this because we know they
have been paying off some people, $2.6 million in 2016, and
that number is increasing.
But we do not really have much evidence that there are
plans in place or that there is training in place. I wonder if
you all or maybe Mr. Barrios or the airlines could comment on
how you are dealing with this, how you intend to improve it.
Are members on the ground getting enough training or is
that just kind of a management handout best practices?
Would you all address that for me?
Ms. Prophete. OK. I would like to address that. From the
regional standpoint, we do not have the manpower to do the work
that is required as the mainline counterparts. For instance, if
you are working a Boeing aircraft, I am sure the mainline
carriers might have six or seven people working. We might have
to do that same aircraft with two in the smaller stations like
a Wilmington or a Greenville-Spartanburg.
So in some of those situations two people might not be able
to handle the wheelchair, which is why it could be.
The training, there is really not a lot of wheelchair
training. I can honestly say as a rep, I do not think we get a
training on wheelchairs.
I think the real issue comes from the airlines not having
like a Big Brother to monitor. Everything is being self-
monitored. So they are getting away with it, which nobody is
over top of them saying, ``Hey, you have to do this, this, and
this, and if you are not doing this, you will be fined.'' And I
think that is part of the problem.
Ms. Titus. Thank you.
Mr. Barrios? [Speaking foreign language.]
Mr. Barrios. [The following language was delivered through
an interpreter.] In the case of the ramp, after OSHA dictated
citations on Eulen, we have a rain of trainings, trainings in
front of the computer, but right before and not very long
before, people would go directly onto the ramp with no
training.
And the ramp is a place that is very insecure, very
dangerous. And including today, there are people who are
working on the ramp, like my coworkers, who have not received
one single training.
So the question as I see it is: why do we continue to wait
until an accident happens until we act?
And the people here who have been in accidents, who have
been injured and our lives have been impacted, why is what we
are saying being questioned?
Ms. Titus. Thank you, Mr. Chairman.
Mr. Larsen. The Chair recognizes Representative Brownley
for 5 minutes.
Ms. Brownley. Thank you, Mr. Chairman.
I thank all of the panelists for being here. This has been
a very informative meeting, and I appreciate all of your
efforts to travel and to be here.
Mr. Harrison, you talked about in your testimony the fact
that the airlines really operate under a model of continuous
safety improvement, that safety is always number one in terms
of priorities.
So when the airline's contractors have serious OSHA
complaints, allegations, I am sure that is a concern for the
airlines. I am more interested in what actions are taken by the
airlines to ensure that these allegations are corrected and
addressed?
Mr. Harrison. Representative Brownley, thank you for your
question.
So first of all, I think the contracts that the carriers
have with these ground service providers provide they have to
comply with the law. They provide certain monitoring and those
sorts of things.
I do not really have a specific anecdotal situation to give
you to say this is one and this what they did in response. I
think they are dealt with on an individual basis.
So if you have something that comes up or a breach that the
airlines see, I believe they address it appropriately with that
contractor, and you certainly see you have instances that
happen. I mean, accidents happen, and that is part of the
learning process, but I think the airlines deal with those on a
case-by-case basis and try to address it. They are not ignored.
Ms. Brownley. OK. And do you know of any instances where
the airlines have disengaged from a contractor once the
contract was up to say, ``You are not complying enough. We are
not satisfied with your performance. Therefore, we are going to
go out to bid to look for others''?
I understand in some places across the country there is not
a lot of competition, but I am from the L.A. area, and I know
there is plenty of competition there.
So do you know of any instances of that?
Mr. Harrison. Not specifically.
Ms. Brownley. OK. And then in smaller areas----
Mr. Larsen. Microphone. Microphone, Mr. Harrison.
Mr. Harrison. I do not know of any specific instances, but
I am sure it has happened.
Ms. Brownley. So you know, in other parts of the country
where regional carriers are the contractors to fulfill some of
these responsibilities, in some cases they are wholly owned
subsidiaries, and so I am wondering in terms of contract
negotiations, et cetera, what role does the airline actually
have over and above these regional carriers in those
negotiations, if any.
Mr. Harrison. So, for example, is a particular mainline
carrier over a wholly owned regional?
So typically there are legal restrictions on the ability of
the mainline carrier to get involved in negotiations like that.
They are separate entities, and each entity would engage in its
own negotiation.
Ms. Brownley. OK. Thank you.
And, Mr. Harrison, do you support the Federal minimum wage
or does the airline support the Federal minimum wage to $15
that Congress passed?
Mr. Harrison. So Airlines for America does not take a
position on any wage particular issue. I think that is for this
body to address and for the Government to address. What they
require is compliance.
So what we ask, I think, is that our industry not be
targeted specifically where they say the airline industry ought
to have this particular thing. I think that is part of a
broader economic discussion that this body and other bodies
here on the Hill can have and is appropriate.
But the A4A does not take a position.
Ms. Brownley. Thank you.
Mr. Callaci, talking about the minimum wage, the House
passed legislation to raise it to $15 an hour. So from your
vantage point, besides increasing the minimum wage, what other
sort of policy--and I know you said you are not a policy
expert; you are an economist--but what other recommendations do
you have that counter the sort of outsourcing trends that you
outline in your testimony?
Mr. Callaci. Yes. So I mean, I can speak a little bit to
that. So, yes, the minimum wage should be increased. We have
now a great natural experiment of all the minimum wage
increases happening in municipalities and unemployment did not
go up.
But things like, for example, a living wage law, what that
does is it sort of puts a break on the outsourcing. If you are
a more efficient contractor, you can still outsource, but you
cannot do it just because the wages are lower.
So those sorts of mechanisms, yes, to make that bridge
between the contractor and the----
Mr. Larsen. I will ask Dr. Callaci to give a more complete
answer for the record.
Ms. Brownley. Thank you. I yield back.
Mr. Larsen. Before we move on, I have been notified by the
clerk I need to ask for a unanimous consent request. I hope we
get some support on this. It has to do with there is a
translator involved with Esteban Barrios, and so I just ask
unanimous consent to allow the translator, Ms. Margarita
Alonzo, to provide answers in English for Mr. Esteban Barrios
when necessary.
Also, I want to apologize that we did not get this sorted
out ahead of time. That is on us, and we will do better in the
future.
And one final thing. I would indulge Members. If you are
bilingual still allow the witness to answer fully. Even if you
do understand the answer because you are bilingual, please
allow the witness to answer fully before you move on, for the
rest of us who are not bilingual.
And then we will figure out how to deal with this in the
future.
Without objection, so ordered on the unanimous consent.
Representative Garcia from Illinois.
Mr. Garcia. Thank you, Mr. Chairman.
I would like to thank all of the panelists who are here and
all of the workers, of course, as well.
I have been an activist and an advocate for collective
bargaining rights for workers, for workers who are seeking to
improve their life because I represent a working-class district
in Chicago. As a matter of fact, my district is very close to
both O'Hare Airport, the busiest in the country, and I live
right near Midway Airport.
As a matter of fact, thousands of constituents that I
represent work or have families and friends who work in various
ground worker jobs at both airports. So I get it, and I
understand sometimes the life threatening and physically
demanding conditions that workers are exposed to and tragically
still many only make a minimum wage.
Fortunately, over the past several years, airport workers
have leveraged their bargaining rights. We have stood with them
in Chicago. They have gone on strike, and they have eventually
earned a $15 an hour minimum wage.
That cannot be said, however, across the country, as you
all are testifying here today, and not all workers make those
wages at both of the airports in Chicago.
My first question has to do with the outsourcing workers
from the major airline companies. This is an issue that I have
been very engaged in as it relates to the offshoring of repair
and maintenance jobs, but I understand it has significant
importance to our domestic airline ground workforce here as
well.
So, Ms. Prophete, the Communications Workers of America
represent hundreds of thousands of airport workers. Can you
first share with the public the benefits of union
representation when seeking better pay and working conditions
for airport workers?
And please keep it brief because I have some other
questions which I will ask.
Ms. Prophete. I am sorry. You wanted to know what was the
benefit of having a union?
Mr. Garcia. Yes.
Ms. Prophete. Oh, I mean, it has been great for us because
we have been able to speak up for our members, to bargain
better wages. When I first started at Piedmont Airlines, I made
$8.60. Now their starting rate is at least $12.50. We are not
quite at $15 yet, but we would not have been able to accomplish
that without a bargaining unit.
Mr. Garcia. Very well. And with respect to incidents like
the rage incident that you testified to earlier, what it says
about the causes of rage in those incidents and what
protections for agents need to be in place, in your opinion.
Ms. Prophete. We need enforcement. We have the passenger
rage bill, the FAA reauthorization bill, but the airlines are
not being enforced. We still have passengers that are getting
very angry, striking us, hitting us, and we do not see the
enforcement that airlines are being held accountable to.
Mr. Garcia. Thank you.
And this is a question for either Senor Barrios, Ms.
Patrick-Cooper, or Ms. Prophete.
I remain very concerned about the potential efforts of
major industry players to continue to rely on a contracted
workforce. How does outsourcing these jobs benefit major
aviation industry giants?
And what do you think should be done from a public sector
angle to address these workforce challenges?
[Speaking foreign language.]
Mr. Barrios. [The following language was delivered through
an interpreter.] So I think there should be regulations with
respect to the ramp. There are many things that are not
regulated, and this causes situations where the workers are not
protected.
Ms. Prophete. I want to piggyback on him.
I agree with what he is saying. Like with the mainline
carrier, the amount of employees that they allow to work one
aircraft, we need regulations that if we work their aircraft,
we should have the same amount of employees that have to work
that same aircraft.
Right now they are doing it with contracting us. We might
work a Boeing with two people whereas the mainline carrier will
have six.
Mr. Garcia. Anyone else? Ms. Cooper?
Ms. Patrick-Cooper. Well, as far as the airline catering
workers and with the regulations, I think one of the things you
said earlier about the two airports in Chicago, as far as
living wages. I mean, our main concern is that we know that
Gate Gourmet and Sky Chefs are contractors of the three
airlines, and we feel that these airlines have tremendous
market power to be able to right this wrong, which we feel
which is where our members are unable to live the American
dream, earn the living wages, and be able to have affordable
healthcare.
Mr. Garcia. Thank you so much.
Mr. Chairman, thank you for your indulgence. I yield back.
Mr. Larsen. Thank you, Representative Garcia.
One clarification. In your questioning, you did ask a
portion of that in Spanish. It may have been a clarification,
but we have to have a record.
So just for the clerk and the record, could you just repeat
your question that you asked in English, the Spanish part in
English?
Mr. Garcia. The Spanish part was only a request that they
make their responses brief.
[Laughter.]
Mr. Larsen. Thank you.
Mr. Garcia. And they indulged.
Mr. Larsen. Thank you very much.
We have to keep a record of the hearing. So I appreciate
that.
We will now move for 5 minutes to Delegate Norton from
Washington, DC.
Ms. Norton. Thank you very much, Mr. Chairman, and I want
to thank you for this hearing.
We have had hearings on major issues in the airline
industry, and here we are focusing on perhaps the not so
glamorous parts.
Mr. Larsen. Ms. Norton, could you like get right in the
microphone please?
Ms. Norton. Here we are focusing on perhaps the not so
glamorous but utterly necessary part of this industry.
I ask that this article from the Washington Post, November
26, be included in the record. ``Twelve arrested at Reagan
Airport in worker protest, union official says.''
Mr. Chairman, I ask unanimous consent that this Washington
Post article be put in the record.
Mr. Larsen. Without objection, so ordered.
[The information follows:]
Article, ``Twelve Arrested at Reagan Airport in Worker Protest, Union
Official Says,'' by Martin Weil, Washington Post, November 27, 2019,
Submitted for the Record by Hon. Eleanor Holmes Norton
twelve arrested at reagan airport in worker protest, union official
says
https://www.washingtonpost.com/local/public-safety/twelve-arrested-at-
reagan-airport-in-worker-protest-union-official-says/2019/11/27/
5cf1941e-10d0-11ea-bf62-eadd5d11f559_story.html
By Martin Weil
November 27, 2019
A dozen people were arrested at Reagan National Airport on Tuesday
after blocking traffic in a sit-in protest to call for better pay for
workers who provide in-flight food and beverages for airlines,
according to a union that said it represents the catering workers.
The union, local 23 of Unite Here, said it led the protests at
Reagan to call for higher pay and better health benefits. The group
said demonstrations took place at 17 cities throughout the United
States.
The Tuesday demonstrations came amid heavier traffic at airports
for the Thanksgiving holiday.
The union said the catering workers prepare, pack and deliver food
and beverages served on American Airlines as well as other major United
States carriers.
However, American issued a statement saying that the workers are
employed by catering companies and not the airline.
In its statement, American expressed confidence that with the
continuing aid of federal mediators the catering firms and the union
will reach new nationwide agreements increasing pay and benefits.
Ms. Norton. I appreciate that Ms. Patrick-Cooper of the DC
chapter of UNITE HERE is here. I have a question that is
related to subcontracting work.
I would like to know whether United Airlines, the employees
who work directly for United Airlines, receive the same
compensation as those who work for subcontractors.
Subcontractors, among the samples I have been given, is Gate
Gourmet.
How do the wages and the benefits of the subcontractors and
those who work directly for the airline compare, United
Airlines in particular?
Ms. Patrick-Cooper. I do not have the actual numbers, but
one thing we do know is that our members are at the lower end
in the spectrum as far as wages.
Ms. Norton. I am not asking for the numbers.
Ms. Patrick-Cooper. OK.
Ms. Norton. I am asking whether or not the subcontractors,
subcontract employees and those who work directly for the
airline are in competition with one another in terms of wages
or essentially regarded as being treated in the same way even
though they do not work directly for the airline.
Ms. Patrick-Cooper. They have different packages as far as
wages and benefits. Our members are at the lower end.
Ms. Norton. They are not unionized, are they?
Ms. Patrick-Cooper. I am sorry?
Ms. Norton. The subcontract employees, are they unionized?
Ms. Patrick-Cooper. So the two contractors or workers that
are our members are with Sky Chefs and with Gate Gourmet.
Ms. Norton. Yes.
Ms. Patrick-Cooper. And they are contractors of the
airlines. They provide the food for the airline. So there are,
you know, many different employees within the airlines, with
the flight attendants, the grounds ones, and ours are into the
food and hospitality portion.
One thing we do know is that our members' benefit packages
and wages are nowhere near in line with the other employees.
Ms. Norton. With the subcontract employees?
Ms. Patrick-Cooper. They are not subcontracted. They are
within a collective bargaining. We represent them.
Ms. Norton. I see.
Ms. Patrick-Cooper. Yes.
Ms. Norton. In your testimony, in particular, Ms. Patrick-
Cooper, and here I am going to quote. You said, ``We believe
[the airline's] contract terms with airline caterers leave
little room to pay workers a living wage.''
You mentioned the contract terms with the caterers. Could
you expand on that? What does that mean?
Ms. Patrick-Cooper. A living wage and what we feel is
someone able to work one job, as our theme says, ``one job
should be enough.''
Ms. Norton. But you say the airline's contract terms with
the caterers. What is there about the contract terms that
leaves little room to pay workers a living wage?
Ms. Patrick-Cooper. I am sorry. I am not understanding.
Ms. Norton. I am just quoting. You say, ``We believe the
airline's contract terms----
Ms. Patrick-Cooper. OK. Thank you.
Ms. Norton [continuing]. ``With the airline caterers----
Ms. Patrick-Cooper. Yes.
Ms. Norton [continuing]. ``Leave little room to pay workers
a living wage.''
Ms. Patrick-Cooper. Yes. So American Airlines, the three
big airlines, they themselves have contracts with Gate Gourmet
and with Sky Chefs, which are members. So they are providing a
service to the airline, which we feel is very correlated and
key to our members being able to get a living wage.
Because at the end of the day, you know, American has
publicly said that they understand that the new labor contracts
between UNITE HERE, Sky Chefs, and Gate Gourmet, that it will
result in increased cost for the airline customers, including
American Airlines.
So we feel that they really truly are piece and part, can
be very instrumental in us being able to settle this.
Ms. Norton. Thank you, Mr. Chairman.
Mr. Larsen. Thank you.
I now recognize for 5 minutes Representative Plaskett.
Ms. Plaskett. Thank you, Mr. Chairman.
Mr. Brown, in your written statement, in your written
testimony, you state that airport ramps are dangerous. Would
you please describe some of the conditions that exist today
that are dangerous for the ramp workers?
Mr. Brown. Thank you for asking me the question, Ms.
Plaskett.
I mean, inherently ramps are dangerous because there are
giant jet planes moving around. You have got jet blast coming
out one end, and you have got sucking into at the other end,
other side.
There are precautions that have been put into place to
account for these things. You have got numerous people that
have jobs like caterers who have to put food on the plane in a
short period of time. Cabin service has to get on the plane and
clean it. Laboratory services have to work the outside. New
potable water has to be put on. The bags have to come off, and
some go to the bag room. Some of them are sent to on-line. By
``on-line'' I mean to connecting flights going somewhere else.
Ms. Plaskett. Right.
Mr. Brown. There are a lot of moving pieces, but the
airlines do know about all of these pieces, and they account
for it.
As I stated in that written testimony, every piece of
equipment is in a specific location. It moves in a certain
fashion, and guidelines were put in place to account for that.
Ms. Plaskett. Thank you.
In anyone's, any of the witnesses' opinions, have the
employers and contractors adequately addressed the dangerous
conditions? Does anyone have a thought on that?
Ms. Prophete. I would like to address that.
Ms. Plaskett. Sure.
Ms. Prophete. No. In the situation with Kendrick, we have
been constantly and constantly talking about lighting, and they
have not addressed the lighting issue yet, and Kendrick died on
August 11th.
Ms. Plaskett. And who would be responsible for that
lighting?
Ms. Prophete. Piedmont Airlines.
Ms. Plaskett. The airline or the contractor?
Ms. Prophete. We are the contractor.
Ms. Plaskett. Or the authority that manages the airport?
Ms. Prophete. The city of Charlotte manages the airport,
and they say Piedmont is responsible for the lighting.
Ms. Plaskett. Does anyone have a thought on who is
responsible for that? No?
And I think that is interesting because, you know, the
responsibility could shift, right? We are saying it is the
airline's responsibility, but ultimately the city that runs the
airport I think has the ultimate responsibility to ensure that
those individuals who are working there who are, in fact,
residents of their district should be the ones that are taking
care of that.
I think we like to put a lot of things on the airlines that
sometimes are the contractors, sometimes are the authorities
themselves that are responsible for it.
With that, I know we had some discussion about outsourcing,
and I was hoping, Mr. Harrison, you could explain the need for
outsourcing. I know that the airlines say that it is not part
of their core competence.
Why do they want to stick with the core competence as
opposed to outsourcing, as opposed to keeping all of the
functions managed within themselves?
Mr. Harrison. Certainly. And thank you for your question.
So I think core competence is one of the reasons that they
subcontract out. For example, catering is a good example of
that.
I think another reason is efficiency when, for example, I
testified earlier that if you are going into a small airport,
there may be a frequency issue where you only have two flights
a day there, one in the morning and one in the evening. The
airline, if that is the only flights they have, it does not
make any sense to staff it because that creates a very
difficult work schedule for the employees who are trying to
commute in and out.
So sometimes they use either another carrier there or
another contractor.
Ms. Plaskett. In the Virgin Islands, on the island that I
live on, St. Croix, American Airlines outsources their gate
agents and the individuals that are there.
But in the end their competence or their customer service
really impacts you, the company. It really impacts American
Airlines.
How do you ensure that the services that you outsource are
functioning properly?
And what responsibility can Congress have to those
individuals that you contract to make sure that they are done
properly and that it is not just the airlines that we are
putting the onus on?
Mr. Harrison. Well, I think the airlines contractually have
a right to make sure that the contractor is performing the job
well. That is audited.
Ms. Plaskett. Certain service agreements or service
mandates?
Mr. Harrison. Correct. And those contractors are monitored
to make sure that they are complying.
There is also an entire web of laws from the FAA to TSA, to
OSHA that are in place, and the airlines require compliance
with those laws as well.
Ms. Plaskett. OK. Thank you. Thank you very much.
Mr. Harrison. Thank you.
Mr. Larsen. Thank you.
Rewarded with her patience, I want to recognize
Representative Wilson of Florida for 5 minutes.
Ms. Wilson. Thank you, Mr. Chairman, and also for having
this hearing.
My question is for Mr. Barrios.
You mentioned in your testimony, and we all know this, that
OSHA levied substantial fines against Eulen. Have the working
conditions improved since OSHA citations?
Mr. Barrios. [The following language was delivered through
an interpreter.] Many things have been improved. Thanks to you
for the support from you and the other congresswoman and the
pressure from OSHA, we have succeeded in having some things
fixed at our workplace, but not all of the things have been
addressed.
Ms. Wilson. Commissioner Higgins, thank you so much for
coming to the hearing. I was pleased to learn about your
legislation to amend Miami-Dade's procurement process to
include vendors' reported working conditions and wages and
notices of violations from regulatory agencies as factors in
awarding a contract.
What impact do you think this would have on working
conditions at Miami International Airport?
And how can Congress support your effort to improve working
conditions?
Ms. Higgins. Well, in the case of this new legislation,
because we believe we are no longer able to require
subcontractors like Eulen. We have another four that are
performing similar types of services at the airport to comply
with living wage.
They compete for permit at our airport. So what we are
going to do, and hopefully my fellow commissioners will pass
this, is embark upon a new procurement process where not only
are we going to be asking these companies to compete based on
their technical ability to do the job, but we are going to be
asking them to compete in the American style on how they treat
their employees.
So, for example, they do not have to pay living wage, but
will they pay a living wage?
Will they give access to full-time jobs rather than part-
time jobs? Let's be very clear. When they only let somebody
work 20 hours a week, it is because they do not want to pay for
their health insurance.
Is there access to health insurance?
Is there a labor piece agreement in place, whether or not
they are represented?
So those are the kinds of things that we actually are going
to let the free market compete on. We happen to know because we
have four out of our five permittees at the airport, one of
which is unionized, three of which are not, that we do not
receive these kinds of worrisome complaints on that require an
actual OSHA investigation and our congresswomen to get involved
with to make this happen.
So certainly you can call any of my fellow commissioners
and ask them for their support on this legislation because this
way at least we can do our part and work around the fact that
Congress has not yet asked the airlines and their
subcontractors and subsidiaries to comply with local wage
ordinances.
Ms. Wilson. Thank you.
Mr. Harrison, why do you think the industry has failed at
implementing simple measures, like adding seatbelts on vehicles
or ensuring that the tarmac is adequately lit at night or
paying a livable wage?
The job is inherently dangerous. So why has the industry
not stepped up?
Mr. Harrison. So I am speaking on behalf of the airlines. I
am not here on behalf of the contractors or them. So I cannot
really speak to any specific issues.
What I can tell you is that airlines take safety as their
number one priority. There is a process in place for continuous
safety improvement, and they look for ways to try to deal with
those situations.
Sometimes it is complicated because, for example, there may
be an airport, I think, as the Representative said a minute
ago, there may be an airport that is owned by a city that is
responsible for the lighting.
If there is an issue and something gets brought to the
airline's attention and there is a problem, they will try to
deal with that maybe with the local authority.
But I think it is a continuous process to try to make
things better, and the airlines have certainly engaged in that.
There are instances, I think, that have been brought up here
where bad things have happened, certainly, and I think those
are things that everyone can learn from and figure out how to
do better going forward.
Ms. Wilson. Mr. Brown, Eulen employees have reported that
they have been fired, transferred to hotter jobs, and forced to
eat lunch in the bathroom for engaging in union activities. Do
you consider the health and safety problems raised by Ms.
Prophete and Mr. Barrios and his coworkers to be legitimate?
Do you think that these complaints are true or are the
workers lying to generate negative media or public attention,
which you said?
Mr. Brown. I cannot speak to anything specifically. I think
the witnesses that are here, you have to take them at their
face value, but you know, for me to tell you what is happening
with Eulen in Miami, I am not there.
Ms. Wilson. I will yield back.
Mr. Larsen. Thank you.
So are there any further questions from members of the
subcommittee?
[No response.]
Mr. Larsen. I had further questions, but they have been
asked by Members since I had my time a couple of hours ago.
So seeing no other questions, I do want to thank the
witnesses, all of the witnesses, for your testimony today. The
contribution to today's discussion was very useful, and you
have given us some food for thought as well as some followup.
So I think you should expect to hear from committee staff.
I do ask unanimous consent that the record of today's
hearing remain open until such time as our witnesses have
provided answers to any questions that may be submitted to them
in writing.
So ordered.
And unanimous consent that the record remain open for 15
days for any additional comments and information submitted by
Members or witnesses to be included in the record of today's
hearing.
Without objection, so ordered.
If no other Members have anything to add, the subcommittee
now stands adjourned. Thank you.
[Whereupon, at 12:31 p.m., the subcommittee was adjourned.]
Submissions for the Record
----------
Letter of January 24, 2020, from Hearing Witness Brian Callaci, Ph.D.,
Postdoctoral Scholar and Labor Economist, Submitted for the Record by
Hon. Rick Larsen
January 24, 2020.
Chairman Rick Larsen
House Subcommittee on Aviation
Rayburn House Office Building, Room 2165
Re: Oversight of Working Conditions for Airline Ground Workers
Dear Chairman Larsen, Ranking Members, and other members of the
Subcommittee:
I would like to submit for the record my response to Mr. Russell
Brown's testimony to the subcommittee's January 15th hearing, Oversight
of Working Conditions for Airline Ground Workers. In his testimony, Mr.
Brown alleges that my report, ``Fissuring in Flight,'' is
``unpersuasive, overgeneralized, and, at times, misleading.'' This is
an extraordinary claim to make regarding a witness's academic work, as
is evidenced by Politico reporter Sam Mintz's reaction: ``Not sure I've
ever seen this before.'' \1\
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\1\ https://twitter.com/samjmintz/status/1217476894997782530
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I will address Mr. Brown's criticisms one at a time. I think it
will be clear after I have addressed them that where Mr. Brown's
allegations make any sense at all, taking them into account would
strengthen rather than weaken the findings of the report. This is
because, at every opportunity, I used conservative assumptions in my
analysis.
1) Mr. Brown claims that the North American Classification System
(NAICS) industry that I use in the report to capture outsourced airline
workers, ``Support Activities for Transportation,'' is inappropriate
and excludes workers in the ``Other Airport Operations'' category. He
argues that the latter is the more appropriate NAICS industry
pertaining to outsourced airline workers.
Mr. Brown's criticism misapprehends the NAICS industries in
question. Mr. Brown's preferred industrial classification, Other
Airport Operations, is in fact a subset of the broader Support
Activities for Air Transportation used in my report--no worker in the
former is excluded from the latter at all. What is more, Other Airport
Operations is characterized by even lower wages than the broader
Support Activities for Air Transportation. This would seem to
strengthen rather than weaken my finding that outsourcing is associated
with reduced wages.
As I plainly outline in Appendix A on page 50 of the report, NAICS
industrial classifications move from the general to the specific
depending on the number of digits. Support Activities for Air
Transportation, the industry I used, is what is known as a four-digit
NAICS industry. Other Airport Operations, Mr. Brown's preference, is a
more detailed, six-digit NAICS industry, fully contained within the
broader four-digit NAICS industry.
I reproduce the relevant portion of Appendix A below, to show the
hierarchy of broad to detailed NAICS industries in the aviation sector:
48: Transportation & Warehousing
481: Air Transportation
488: Support Activities for Transportation
4881: Support Activities for Air Transport
48811: Airport Operations
488111: Air Traffic Control
488119: Other Airport Operations
48819: Other Support Activities for Air Transport
As I state page 12 of the report,
``Air Transportation encompasses what we would consider the
airline industry, including cargo and charter airlines. Support
Activities for Air Transportation includes companies that
provide specialized services to the air transportation
industry, such as airport operations and servicing and
maintaining aircraft. Companies in the support for air
transportation industry, such as Air Serv and Menzies, are
contractors performing services outsourced by airlines and
airport authorities, so employment in this industry is a rough
measure of the extent of outsourcing.''
Other Airport Operations, which Mr. Brown claims is the more
appropriate industry, consists of a narrower range of activities, such
as transporting disabled passengers within airports and handling
baggage.
Moreover, Mr. Brown's call for me to use Other Airport Operations
instead of Support Activities for Air Transportation falls flat because
I do show the relationship between wages in Other Airport Operations,
Support for Air Transportation, and Air Transportation, on Page 15. As
can be seen from Figure 2 on that page, reproduced below, wages in
Other Airport Operations are considerably lower than either the broader
Support for Air Transportation industry or the Air Transportation
industry.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
2) Mr. Brown claims that I unjustifiably exclude workers in food
service and janitorial services at airports in my estimates. These
industries are classified under NAICS codes 722310 and 561720,
respectively.
Mr. Brown is absolutely correct that I exclude workers in these
industries from my analysis, but seems to misunderstand the implication
of that omission. First of all, Mr. Brown seems to confuse the
treatment of industries vs. occupations in government statistics. It is
not possible, using Quarterly Census of Employment and Wages data, to
break out those janitorial and food service workers who happen to
service airports and aircraft from the rest of the much larger food
service and janitorial services industries. For example, someone with
the occupation of janitor employed by Air Serv is employed in the
Support Activities for Air Transportation NAICS industry, while a
janitor for a cleaning firm like ABM, even if employed at an airport,
is employed in the janitorial services NAICS industry.
More importantly, by using only the Support Activities for Air
Transportation NAICS industry to count outsourced workers, I
conservatively bias my estimates towards a lower number of outsourced
workers. As my report states on page 12:
``However, `support activities' is likely to undercount
outsourced aviation workers, because some of the companies
providing services to airlines are not classified in the
`support activities' industry. For example, outsourced janitors
employed by a janitorial services company like ABM or security
guards employed by a security company like G2 will show up in
the janitorial or security industries, respectively, not the
support activities for air transportation industry.''
Finally, food service, janitorial services, and security services
are some of the lowest-wage industries in the US. By leaving those
industries out of the analysis, my report is extremely unlikely to bias
my outsourced worker wage estimates in an upward direction. Thus, wage
inequality between insourced and outsourced workers is likely even
greater than suggested by my results.
In short, with regard to industry classification codes, Mr. Brown
confuses occupations with industries, and detailed industry NAICS codes
with broad industry NAICS codes. Were it possible to take Mr. Brown's
criticisms into account using publicly available government data, it
would likely result in estimates showing that the actual extent of
outsourcing is higher, and the wages even lower, than my estimates
imply.
3) Mr. Brown accuses my report of ignoring international flights
in calculating my employment and wage figures.
Mr. Brown is absolutely correct that I leave out international
flights in the section of the report pertaining to regional vs.
domestic airline employment and wages. My report pertains specifically
to the US Domestic Airline Industry--it says so in the title. The
report argues that legacy carriers have been substituting regional for
mainline flights on domestic routes. It is silent on the matter of
international routes, which are outside the scope of the study.
Moreover, the wage disparities documented in the report between
regional and legacy airline employees would be even greater were I to
include international flights, because international pilots and flight
attendants earn higher salaries than their domestic counterparts. Once
again, I used conservative assumptions in the report to understate
rather than overstate the findings. The conservative assumptions are
also more analytically appropriate, as my analysis is intended to
provide an accurate apples-to-apples comparison of domestic regional to
domestic legacy workers.
4) Mr. Brown argues that labor markets are perfectively
competitive and therefore wages ``find their level,'' obviating the
need for labor unions or labor market policies to protect workers.
The perfect competition assumption is completely untenable in light
of recent empirical evidence in economics.\2\ The present consensus in
the economics profession is that employers across a wide range of labor
markets have wage-setting power: they do not take wages as given by the
market. That is, labor markets are monopsonistic rather than perfectly
competitive. The hub-and-spoke nature of airline industrial
organization, with its attendant high concentrations of dominant
airlines at hub airports, would seem to make airline and airline
services labor markets more rather than less monopsonistic than
average. For pilots, flight attendants, or contractors selling labor
and non-labor inputs to airlines in say, Salt Lake City (a Delta hub),
how many employers are effectively competing for their inputs?
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\2\ See, for example:
Azar, Jose, Iona Marinescu, and Marshall Steinbaum. 2019. Labor
Market Concentration. NBER Working Paper 24147.
Cengiz, Doruk, et al. 2019. The Effect of Minimum Wages on Low-Wage
Jobs. Quarterly Journal of Economics, 134(3): 1405-1454.
Dube, Arindrajit, Alan Manning, and Suresh Naidu. 2018. Monopsony
and Employer Mis-optimization Explain Why Wages Bunch at Round Numbers.
NBER Working Paper 24991
Dube, Arindrajit, et al. Forthchoming. Monopsony in Online Labor
Markets. American Economic Review: Insights.
Manning, Alan. 2003. Monopsony in Motion: Imperfect Competition in
Labor Markets. Princeton: Princeton University Press.
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To conclude, Mr. Brown's criticisms are quite wide of the mark.
Were I to take them seriously, however, they would bias my results in
favor of, rather than against, my conclusions.
Sincerely,
Brian Callaci,
Postdoctoral Scholar, Data & Society Research Institute.
Appendix
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Question from Hon. Salud O. Carbajal to Esteban Barrios, Ramp Worker,
Miami International Airport, testifying on behalf of Service Employees
International Union Local 32BJ
Question 1. I found your testimony to be very compelling--
specifically as you discuss the health hazards and exposure to
communicable diseases that not only workers but also passengers are
exposed to. You discuss roach-infested transport trucks that carry
supplies--like pillows and blankets for passengers--as well as exposure
to blood-borne pathogens that carry communicable diseases such as
Hepatitis B. What are your ideas on how Congress can provide better
oversight to ensure the health and safety of workers and passengers?
Answer. Congress can provide better oversight to ensure the health
and safety of workers and passengers by doing two things:
1. Urging airlines to only hire responsible subcontractors. As we
heard at the hearing, both Delta Airlines and American Airlines employ
Eulen America, a contractor with a poor record. Members of Congress can
call the CEOs of these two companies and ask that they only work with
responsible contractors, who don't have a track record of jeopardizing
their workers' safety.
Delta Air Lines
Ed Bastian, CEO
American Airlines
Doug Parker, CEO
2. Calling on OSHA to continue their inspections at airports and
with contractors with documented history of complaints, specifically,
calling for follow-up inspections of Eulen America and Menzies Aviation
at Miami International Airport and Menzies Aviation at Baltimore
Washington International Thurgood Marshall Airport.
In the future, Congress may consider exploring that funding for
airport infrastructure be contingent on employment of responsible
contractors and meaningful standards to ensure there is investment in
the workforce.