TOMORROWS TRANSPORTATION NEWS TODAY!

Tag: criminal

Ford’s UAW Members Vote to Ratify New Four-Year Contract

FILE PHOTO: Frankfurt hosts the international Motor Show (IAA)

DETROIT (Reuters) – The United Auto Workers union said on Friday that rank-and-file members at Ford Motor Co <F> have voted in favor of a new four-year labor contract with the No. 2 U.S. automaker.

The UAW will now focus on Fiat Chrysler Automobiles (FCA) <FCAU>, the sole remaining Detroit automaker without a new labor contract. Talks with FCA are expected to begin on Monday, a UAW spokesman said.

The union said 56.3% of Ford’s hourly workers voted to approve the deal, which allowed the company to avoid a strike like the one that cost its larger rival General Motors Co <GM> about $3 billion (£2.3 billion).

UAW leaders said earlier this month that Ford under the deal agreed to invest more than $6 billion in its U.S. plants, and to create or retain more than 8,500 UAW jobs.

The deal also includes pay raises and lump-sum payments over the life of the contract, a pathway to full-time employment for temporary employees and unchanged healthcare coverage.

Workers at GM approved a deal in late October that ended a contentious 40-day U.S. strike, the longest automotive labor stoppage since 1970.

Detailed terms of the Ford deal – released just a week after GM workers approved their new contract – echoed those agreed to with GM, as the union typically uses the first deal as a template for those that follow.

UAW leaders managed contract negotiations with Ford and GM, including the lengthy strike, while struggling with an ongoing federal corruption probe.

To date, 10 people have pleaded guilty in connection with the criminal investigation into illegal payoffs. Just last week former UAW vice president and former GM board member Joseph Ashton was charged with conspiracy to commit money laundering and wire fraud.

Earlier this month the UAW said that its president, Gary Jones, who had been linked to the ongoing corruption probe, was taking a leave of absence.

Rory Gamble, the union’s acting head, said last week he will examine every department of the union in response to the spreading federal corruption probe to prevent future misuse of members’ dues.

(Reporting by Nick Carey and Ben Klayman in DetroitEditing by Matthew Lewis and Cynthia Osterman)

American Airlines Mechanic Charged with Alleged Sabotage of Plane Amid Union Dispute

WASHINGTON, Sept 5 (Reuters) – An American Airlines mechanic was on Thursday charged with purposely damaging an aircraft in July amid a dispute between the airline and its mechanics union involving stalled contract negotiations.

Pilots of a flight from Miami to Nassau, Bahamas on July 17 aborted take-off plans after receiving an error message involving the flight computer, which reports speed, pitch and other data, according to a criminal complaint filed in U.S. District Court of Southern Florida.

It said after returning to the gate for maintenance, a mechanic discovered a loosely connected pitot tube that measures airspeed and connects directly to the flight computer.

A later review of video surveillance footage before the flight captured “what appears to be the sabotage of the aircraft” by a man walking with a limp, the complaint said.

When suspect Abdul-Majeed Marouf Ahmed Alani was interviewed, he told law enforcement he was upset at the stalled contract between the union and American, which he said had affected him financially, according to the complaint. It said Alani claimed to have tampered with the aircraft to cause a delay or have the flight canceled in anticipation of obtaining overtime work.

Unions have complained that American is trying to outsource more maintenance jobs, a move American has indicated is necessary to cover increased wages.

A U.S. federal court last month issued a permanent injunction against American’s mechanics union, which the airline had accused of illegal slowdowns it said had devastated its operations during the peak summer travel season.

A spokesman for American said the airline had an “unwavering commitment” to safety and security and had placed passengers on the July 17 flight subject to the criminal complaint on another plane to get to their destination.

“At the time of the incident, the aircraft was taken out of service, maintenance was performed and after an inspection to ensure it was safe the aircraft was returned to service,” the spokesman said. “American immediately notified federal law enforcement who took over the investigation with our full cooperation.”

The Miami Herald reported that Alani is set to make an initial court appearance on Friday. Court records did not indicate if Alani had an attorney.

The U.S. federal court order last month prohibits employees from “calling, permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any form of disruption to or interference with American’s airline operations,” including a refusal to accept overtime or complete any maintenance repairs in the normal course of work.

(Reporting by David Shepardson; Additional reporting by Tracy Rucinski in Chicago; Writing by Jamie Freed; Editing by Christopher Cushing)