The Mechanics of United Airlines

Louis Uchitelle on the mechanics of United Airlines:

Retraining for What? Mr. Nunnally had experienced the center's glory days. He joined United in 1989 as a 30-year-old mechanic in San Francisco and transferred to Indianapolis in 1994, drawn by the lower cost of living and the recently opened center. The mechanics in Indiana worked mostly on Boeing 737's, but as United expanded the operation — opening more repair bays, hiring more mechanics and extending the legs of the L-shaped building until each was nearly a half-mile long — they also overhauled other so-called narrow-body aircraft, including Airbus 319's and 320's and the larger Boeing 757's.

With morale high in the 1990's and the mechanics willing to work hard, they put airliners through their periodic overhauls in record time. The stem-to-stern refurbishing of a 737 normally required 22 days at other maintenance centers. The mechanics at Indianapolis cut that to 11 days for a 737 going through its first heavy maintenance and to less than 20 days for older planes. "We had overhaul bays that kind of competed in a friendly way to see who could do the best," said Frederick L. Mohr, general manager of the Indianapolis center from 1997 until 2002.... Capitalizing on the growing productivity, United itself got into outsourcing as a means of keeping the giant center busy during slack periods in its own operations. America West was sending 737's and 757's to Indianapolis for heavy maintenance, and by the spring of 1999 the work force had grown to 2,400 mechanics from fewer than 250 when Mr. Nunnally arrived in 1994. The fast turnarounds and reliable work justified the relatively high fees that United charged, and America West shifted maintenance to Indianapolis from a private, less expensive contractor in Portland, Ore., whose mechanics earned less....

What drove away America West was the labor trouble that erupted over the Fourth of July weekend in 1999 and then mushroomed into a prolonged slowdown. In retrospect, that weekend was the turning point, the moment when the remarkable efficiencies that had been achieved at Indianapolis began to unwind, and labor-management tensions that had been accumulating suddenly asserted themselves.... The incident that started United down the road to outsourcing and layoffs seemed so minor. During the trusting years, the foremen had relaxed the restrictions on the number of mechanics who could take vacation days at the same time. For that Independence Day weekend, more than 100 mechanics had been granted time off — 10 times the prescribed number.

Mr. Mohr, the general manager, was himself on vacation in the days leading up to the weekend, and he called the office to remind his lieutenants to be careful about allowing too many mechanics to be away. Somehow that became a wholesale, last-minute cancellation of vacation time, outraging the mechanics. "To this day, they get upset when they talk about what happened that weekend," Mr. Doucey said. The uproar over vacations stirred up other resentments — how United had gotten tough about sick days, how it had scaled back flexible hours, how it had substituted an 8-hour shift for a 10-hour one that allowed three- and four-day weekends, which the mechanics preferred.

"Once the vacation thing happened, that ignited a lot of small fires," Mr. Nunnally said. The militants in his local fanned those fires, arguing that the mechanics, because of their unique skills, were special people, essential to airline safety, and that United should be forced to recognize their value. Mr. Mohr resisted this logic. "Anything we had to do to respond to the business environment was seized upon by the mechanics as something negative," he said. Mr. Nunnally, who was then chairman of the lodge's grievance committee, was caught between management and his members, his leadership challenged by the militants, who numbered nearly 300 mechanics. "I said to Mohr, 'I have to have some wins, too; I can't be beaten in every grievance and do nothing,' " Mr. Nunnally said. "I practically begged him to cooperate, and he could not do that."

BY the fall of 1999, the mechanics were engaged in a slowdown. That is not difficult when airline safety is at issue. If an inspector, drawn from the ranks of the mechanics, finds fault with a newly refurbished wing flap assembly or some other repair, he writes up a ticket reporting the flaw or a potential malfunction; even if there isn't a problem, time has to be spent to investigate the issue to the satisfaction of the Federal Aviation Administration. As the mechanics had intended, turnaround time inched up, soon reaching 15 days and eventually more than 20 days for a 737. America West stopped sending planes to Indianapolis, as the mechanics had hoped. To regain the lost business, they expected United to restore some of the lost perquisites and thus win back the mechanics' cooperation. Jobs would be preserved, and on the mechanics' terms.... Then, in July 2000, the mechanics slowed work even more by voting to withhold overtime, to protest what the militants viewed as management's recalcitrance in negotiating a new contract to replace one that had just expired. Mr. Nunnally, as grievance chairman, had spoken against withholding overtime, and worked it himself, in defiance of his militant members, but his point of view did not prevail.

Soon after, the outsourcing began. United diverted work from Indianapolis to private contractors in Alabama and North Carolina, contractors who employed nonunion mechanics — in most cases, at lower wages and with fewer benefits. "The outsourcing was a business decision," Mr. Mohr said. "The cycle time had gotten to the point that if we did not outsource, we would have aircraft continuously parked, waiting for maintenance." When United and the union finally signed a new contract in March 2002... the mechanics' combined wages and benefits rose to more than $60 an hour, an increase of roughly $20... double the labor cost of nonunion contractors. It was too big a spread for the mechanics in Indianapolis to overcome — unless they could return to the record turnarounds achieved in the late 1990's. But the old efficiency did not reappear.

Even if it had, the outsourcing would not have stopped, and for a reason quite apart from labor costs. United would not submit again to the leverage over maintenance operations that the mechanics in Indianapolis had exercised....

Job training, as a result, became a channeling process, channeling the unemployed into the unfilled jobs that do exist, with a veneer of training along the way.... Saying that the country should solve the skills shortage through education and training became part of nearly every politician's stump speech.... But training for what? The reality, as the aircraft mechanics discovered, is painfully different from the reigning wisdom. Rather than having a shortage of skills, millions of American workers have more skills than their jobs require. That is particularly true of college-educated people, who make up 30 percent of the population today, up from 10 percent in the 1960's. They often find themselves working in sales or as office administrators, or taking jobs in hotels and restaurants, or becoming carpenters, flight attendants and word processors....

By the spring of 2004, however, out of more than 800 mechanics from United who had gone through her program or were still going through it, only 185 were working again. Despite their skill, 33 of those 185, or 18 percent, were earning less than $13.25 an hour working in warehouses, on construction jobs, in restaurants or in retailing. Some were "throwing boxes," as the mechanics put it, for FedEx, which paid them only $10 an hour at its shipping center in Indianapolis. They took the work, which entailed loading and unloading air freight packages, for two reasons: FedEx offered them company-paid health insurance, which some of the mechanics desperately wanted, and they saw in the job a gamble worth the hardship, given the glum alternatives....

Earning the old level of pay again was rare. Of the 185 mechanics back at work in the spring of 2004, most earned $14 to $20 an hour as heating and air-conditioning repairmen, auto mechanics, computer maintenance workers, freight train conductors (CSX happened to be hiring) or cross-country tractor-trailer drivers, having graduated from a two-week driver-training course offered by Ms. Bucko's people. THE relatively high number of mechanics who became truck drivers angered Mr. Nunnally, the union leader, who now made a living washing windows, which he did in partnership with another former mechanic.... Only 15 of the re-employed mechanics had regained their United wage level or exceeded it, and 8 of those 15 did so by becoming aircraft mechanics again. Several of the mechanics, stifling reluctance and resentment, had left Indianapolis to work for the companies that United and other airlines were using to do heavy aircraft maintenance. They were mostly younger mechanics with relatively little seniority when United laid them off and were still low on the wage scale, earning $19 or $20 an hour...