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Tuesday, February 5, 2002




Machinists union
offers airlines deal
to save jobs

The proposal would allow members
to take full retirement at age 55


By Russ Lynch
rlynch@starbulletin.com

The union representing some 3,500 mechanics and other workers at Aloha Airlines and Hawaiian Airlines has made a proposal that it says could avoid hundreds of layoffs when the merger takes place.

Allowing its members to take full retirement at age 55 instead of 65 would be a significant cost savings for the new airline, the International Association of Machinists said.

The cost would come out of the two airlines' pensions funds, said Randy Kauhane, assistant general chairman of IAM District Lodge 141. "We need to know how healthy the plans are," he said, but he said the proposal could be discussed with management at a negotiating session late today.

Sources said various proposals relating to furloughs would come up at that meeting.

Kauhane said 384 IAM members total at the two airlines would qualify for the early retirement plan.

On Jan. 9, TurnWorks Inc., the company putting together the merger, made an offer to the IAM that it said would avoid furloughs for its members. Similar to an offer made earlier to the flight attendants, it calls on the union to combine the seniority lists at both airlines and accept benefits detailed in the 42-month contracts recently signed between the unions and Hawaiian Airlines.

The proposal, which could alter pay and other benefits for some workers, would not automatically bring back the workers furloughed last year after the Sept. 11 disaster, some 250 at Aloha and 430 at Hawaiian, TurnWorks said.

But TurnWorks head Greg Brenneman said he expects the merged airline to grow and create jobs so all of them can come back to work.

Last week, both airlines said business had already picked up enough for them to start recalling furloughed workers. Aloha said it was bringing back 70 and Hawaiian said it had brought back a few.

TurnWorks officials could not be reached for comment early today.



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