1985 Pan Am strike

1985 labor strike September 2021 September 2021 United States 1985 Pan Am strike February 28 - March 28, 1985(02 28 1985 03 28 1985) Pan Am Transport Workers Union of America * Picketing Strike action Dispute between union and company over terms of a new labor contract Union agrees to terms similar to those the company made prior to the strike The 1985 Pan Am strike was a labor strike involving several thousand workers, all members of the Transport Workers Union of America (TWU), at Pan American World Airways. The strike began on February 28 and ended one month later on March 28. It involved roughly 19,000 workers.Noble Kenneth B. 1985-07-12 BIG STRIKES FOUND ON DECLINE IN U.S. en-US The New York Times https://www.nytimes.com/1985/07/12/us/big-strikes-found-on-decline-in-us.html 2023-07-20 0362-4331 During the 1980s, Pan Am was struggling financially, and in the early years of the decade, its five labor unions agreed to concessions in order to help the company remain financially stable. However, in December 1984, the labor contracts between Pan Am and the unions expired without replacements, with the unions requesting a lifting of the concessions that had included a pay freeze. TWU, which represented about 5,800 workers in various positions at the company, was especially vocal, and on February 28, after failing to come to an agreement with the company, they went on strike. Initially, the four other unions agreed to honor TWU's picket lines. However, after several days, citing concerns over the negative long-term impact a prolonged strike could have on the company, several unions (including those representing pilots and flight attendants) crossed the picket lines and returned to work. Following this, TWU and Pan Am agreed to meet for negotiations, which occurred throughout March and led to a tentative agreement being reached on March 23. In a narrow vote finalized on March 28, the union agreed to accept the contract (which contained similar provisions to the proposal Pan Am had made TWU before the strike) and ended the strike. While the contract included several concessions, the union also received annual pay increases of 5 percent for the duration of the contract. The strike came during a difficult time in the relationship between organized labor and American airlines, with 14 strikes occurring at airlines between 1980 and 1986. Several of these strikes saw a high degree of interunion support. Historian David J. Walsh summarized the strike by saying that, while TWU won some gains alongside some concessions, the union's efforts were hurt by a breakdown in interunion support and genuine concerns from some unions over the negative effects of a long-term strike. Following the strike, Pan Am sold some of its assets in 1985, and in 1991, the company declared bankruptcy and ceased operations. Background thumb|275x275px|A Pan Am commercial airliner, 1984 On December 31, 1984, labor contracts between Pan American World Airways and five labor unionsnote These unions included the Air Line Pilots Association, International; International Brotherhood of Teamsters,;the Independent Union of Flight Attendants; the Transport Workers Union of America; and the Flight Engineers International Association. representing 21,000 of the company's 26,000 workersnote Sources differ slightly on the numbers, with some claiming 19,000 union workers and a total workforce of 27,000. for the company expired without replacements in line, with the company arguing that further concessions regarding wages and productivity levels were required from the unions in order to maintain financial stability.Pelline Jeff January 29, 1985 Pan Am Taking Steps to Protect Itself from Strike https://www.sun-sentinel.com/news/fl-xpm-1985-01-29-8501050392-story.html live https://web.archive.org/web/20210628113343/https://www.sun-sentinel.com/news/fl-xpm-1985-01-29-8501050392-story.html June 28, 2021 September 15, 2021 Sun-Sentinel Tribune Media en-USPelline Jeff February 25, 1985 Struggling for Survival, Pan Am Faces Strike https://www.sun-sentinel.com/news/fl-xpm-1985-02-25-8501070370-story.html live https://web.archive.org/web/20210628113841/https://www.sun-sentinel.com/news/fl-xpm-1985-02-25-8501070370-story.html June 28, 2021 September 15, 2021 Sun-Sentinel Tribune Media en-US In the preceding years, Pan Am had experienced major losses, with the company posting a US$206.8 million loss for 1984 and a $51 million loss for 1983. The company itself had not been profitable since 1980, and since then, over 8,000 workers had been laid off.February 27, 1985 Pilots, Pan Am Agree; Mechanics Threaten Strike Los Angeles Times Associated Press https://www.latimes.com/archives/la-xpm-1985-02-27-mn-8691-story.html September 15, 2021 https://web.archive.org/web/20210915122033/https://www.latimes.com/archives/la-xpm-1985-02-27-mn-8691-story.html September 15, 2021 However, in negotiations, the unions rejected an extension for these concessions. In a previous round of negotiations in 1982,Townsend Ed March 5, 1985 How Eastern Airlines was able to dodge the strike that Pan American couldn't The Christian Science Monitor Christian Science Publishing Society https://www.csmonitor.com/1985/0305/apanam.html September 15, 2021 https://web.archive.org/web/20201029113101/https://www.csmonitor.com/1985/0305/apanam.html October 29, 2020 0882-7729 the unions had agreed to a pay freeze with an agreement that pay increases would return by the end of 1984.Weinstein Henry Dallos Robert March 1, 1985 Two-Thirds of Pan Am's Flights Canceled by Strike https://www.latimes.com/archives/la-xpm-1985-03-01-mn-23877-story.html live https://web.archive.org/web/20210915115648/https://www.latimes.com/archives/la-xpm-1985-03-01-mn-23877-story.html September 15, 2021 September 15, 2021 Los Angeles Times en-US However, as this did not happen, the Air Line Pilots Association (ALPA) took legal action and won a "snapback" of wages on December 26. Pan Am, in an effort to continue the concessions, appealed the decision, though the company lost this fight by late February 1985. Around the same time, the company began to prepare for possible strike action from the unions, with the Transport Workers Union of America (TWU, representing 5,800 Pan Am baggage handlers, flight dispatchers, food service employees, and mechanics) legally free to strike starting on February 28. TWU had previously staged a one-day walkout in August 1984. The other labor unions, in a show of solidarity, stated that they would probably honor TWU's picket lines if they were to go on strike. In a preemptive move, Pan Am began placing advertisements recruiting new hires for the company, which one union representative claimed was "a maneuver to put pressure on the union". On February 26,February 27, 1985 Pan Am In Accord With Pilots en-US The New York Times https://www.nytimes.com/1985/02/27/business/pan-am-in-accord-with-pilots.html September 16, 2021 https://web.archive.org/web/20171127175115/https://www.nytimes.com/1985/02/27/business/pan-am-in-accord-with-pilots.html November 27, 2017 0362-4331 the union representing roughly 1,500 pilots came to a tentative agreement with the company, with the union making some concessions to the company. According to some experts in the airline industry, the agreement included 25.7 percent wage increases for the pilots spread out over 32 months. Despite the agreement with the pilots, TWU still maintained plans to begin striking on February 28 and had agreements with other union leaders to honor their strike. TWU was seeking a 14 percent wage increase, which had been frozen since 1982, and additional guarantees regarding job security.February 28, 1985 Pan Am Hit by Strike; Flights' Status Unclear en-US The New York Times Associated Press https://www.nytimes.com/1985/02/28/business/pan-am-hit-by-strike-flights-status-unclear.html September 15, 2021 https://web.archive.org/web/20171127182314/https://www.nytimes.com/1985/02/28/business/pan-am-hit-by-strike-flights-status-unclear.html November 27, 2017 0362-4331 Additionally, TWU was opposed to reduction in benefits, a new two-tier pay scale, the addition of more part-time workers, and other changes the company was trying to make. At the time, maximum base pay for Pan Am mechanics was over $10,000 less than their counterparts at United Airlines, while baggage handlers similarly made several thousand dollars less than those at United. The day before the strike deadline, the union rejected the company's counteroffer of four five percent wage increases over the next three years and bonuses of $1,200 for mechanics and $900 for other union members. According to a company representative, they had been holding off on making an offer to TWU until a deal had been made with the pilots.February 28, 1985 Mechanics Call Strike Against Pan American : Union Claims to Have Enough Support to Halt Most of Carrier's Flights Los Angeles Times Associated Press https://www.latimes.com/archives/la-xpm-1985-02-28-mn-12744-story.html September 15, 2021 https://web.archive.org/web/20210915115400/https://www.latimes.com/archives/la-xpm-1985-02-28-mn-12744-story.html September 15, 2021 The strike action would be the first major strike at Pan Am in 20 years.Jouzaitis Carol March 13, 1985 Pan Am Unions Under the Gun https://www.chicagotribune.com/news/ct-xpm-1985-03-13-8501140598-story.html live https://web.archive.org/web/20200320143304/https://www.chicagotribune.com/news/ct-xpm-1985-03-13-8501140598-story.html March 20, 2020 September 15, 2021 Chicago Tribune Tribune Media en-US Course of the strike The strike commenced at 12:35 a.m. on February 28.February 28, 1985 Pan Am Mechanics, Baggage Handlers Strike https://apnews.com/article/82b0b63e663743ca6acd0e15ae05c23b September 15, 2021 AP News Associated Press On the first day of the strike, a TWU representative claimed that most of Pan Am's 400 daily flights would be grounded, affecting some 39,000 passengers. However, on the first day, Pan Am managed to operate about 100 flights.Salpukas Agis March 1, 1985 Transport Workers Strike, Halting Pan-Am Flights en-US The New York Times https://www.nytimes.com/1985/03/01/us/transport-workers-strike-halting-pan-am-flights.html September 15, 2021 https://web.archive.org/web/20171126141748/http://www.nytimes.com/1985/03/01/us/transport-workers-strike-halting-pan-am-flights.html November 26, 2017 0362-4331 Starting on the first day, airports that Pan Am operates out of were picketed by the strikers.February 28, 1985 Pickets March at Pan Am Terminals Across Country Los Angeles Times Associated Press https://www.latimes.com/archives/la-xpm-1985-02-28-mn-12681-story.html September 16, 2021 Union leaders for some of Pan Am's other unions agreed to honor TWU's strike, and while there was some questioning from the pilot's union, which had recently come to an agreement with the airline, they also agreed not to cross the picket line. Speaking to the Associated Press on the first day, a union representative said he believed the strike could last a long time.March 11, 1985 Airlines: The Ground Crew Walks Out en-US Time Time Inc. https://content.time.com/time/subscriber/article/0,33009,962566,00.html September 16, 2021 0040-781X As a result of the strike and subsequent groundings, people who had tickets for Pan Am flights were directed to flights from other airlines, such as American Airlines and Eastern Air Lines. Additionally, in spite of union claims that the strike had grounded nearly all of Pan Am's flights, a company representative stated that 60 percent of the company's international flights were still operating, but that domestic flights had been significantly affected. By March 1, the company was not operating any domestic flights. At that time, no negotiations were scheduled between TWU and Pan Am, and while a company representative stated that they hoped for a quick end to the strike, agreeing to the terms set forth by TWU would financially hurt the company and threaten its recovery. An economics professor from Wayne State University stated that, "A long strike can kill Pan Am", while an industry analyst stated that the strike could affect Pan Am's chances of turning a profit for the year.Daniels Lee A. March 1, 1985 Analysts Believe Pan Am Can Survive a Strike, if it's Short en-US The New York Times https://www.nytimes.com/1985/03/01/business/analysts-believe-pan-am-can-survive-a-strike-if-it-s-short.html September 15, 2021 https://web.archive.org/web/20171126125349/https://www.nytimes.com/1985/03/01/business/analysts-believe-pan-am-can-survive-a-strike-if-it-s-short.html November 26, 2017 0362-4331 By the beginning of March, the number of Pan Am flights had dropped to about 30 worldwide, including 40 percent of its international flights,March 5, 1985 Around the Nation; Pan Am and Unionists Seem Set for Long Strike en-US The New York Times https://www.nytimes.com/1985/03/05/us/around-the-nation-pan-am-and-unionists-seem-set-for-long-strike.html September 15, 2021 https://web.archive.org/web/20171126192304/https://www.nytimes.com/1985/03/05/us/around-the-nation-pan-am-and-unionists-seem-set-for-long-strike.html November 26, 2017 0362-4331 but with none in the United States. By March 6, the Chicago Tribune reported that the Independent Union of Flight Attendants (IUFA) had set a strike deadline for April 1, at which time, if Pan Am and IUFA had not come to an agreement on a new contract, they would also go on strike.March 6, 1985 Business Ticker: Pan Am Union Sets Strike Date https://www.chicagotribune.com/news/ct-xpm-1985-03-06-8501120982-story.html September 15, 2021 Chicago Tribune Tribune Media en-US That same day, however, ALPA reached a return-to-work agreement with the company.Salpukas Agis March 7, 1985 Pilots Agree to Cross Picket Lines in Strike Against Pan American en-US The New York Times https://www.nytimes.com/1985/03/07/us/pilots-agree-to-cross-picket-lines-in-strike-against-pan-american.html September 15, 2021 https://web.archive.org/web/20171126154349/http://www.nytimes.com/1985/03/07/us/pilots-agree-to-cross-picket-lines-in-strike-against-pan-american.html November 26, 2017 0362-4331 The development was considered a major blow to the strike, as Pan Am announced they would begin to expand the number of flights they were offering. Pan Am CEO C. Edward Acker praised the pilots for "demonstrating their support for the welfare of the company,Townsend Ed March 8, 1985 Pan Am pilots cross pickets, saying strike cost outweighs gain The Christian Science Monitor Christian Science Publishing Society https://www.csmonitor.com/1985/0308/across.html September 15, 2021 https://web.archive.org/web/20210120172247/https://www.csmonitor.com/1985/0308/across.html January 20, 2021 0882-7729 while on the other end, one TWU representative used the term "scab" to describe the pilots' actions. On March 7, flight engineers, represented by the Flight Engineers International Association, also crossed picket lines and returned to work, while some flight attendants did so as well.Pelline Jeff March 8, 1985 Flight Engineers at Pan Am Go Back to Work https://www.sun-sentinel.com/news/fl-xpm-1985-03-08-8501090129-story.html live https://web.archive.org/web/20210628115343/https://www.sun-sentinel.com/news/fl-xpm-1985-03-08-8501090129-story.html June 28, 2021 September 15, 2021 Sun-Sentinel Tribune Media en-US In addition, Pan Am was recruiting some management workers to temporary fill-in as flight attendants.Salpukas Agis March 8, 1985 Management Employees Coping with Tough New Jobs in Pan Am Strike en-US The New York Times https://www.nytimes.com/1985/03/08/us/management-employees-coping-with-tough-new-jobs-in-pan-am-strike.html September 15, 2021 https://web.archive.org/web/20171127223158/http://www.nytimes.com/1985/03/08/us/management-employees-coping-with-tough-new-jobs-in-pan-am-strike.html November 27, 2017 0362-4331 With the developments, Pan Am announced they soon hoped to have 50 percent of their normal number of flights operating in the next few days. However, Pan Am was still losing approximately $5 million per day,Albrecht 2017 47 and both IUFA and the Teamsters maintained a strike deadline of April 1. On March 9, TWU and Pan Am announced their first negotiation session since the start of the strike, scheduled for the following day, with the company being represented by noted labor negotiator Ray Grebey.March 9, 1985 Union Chiefs to Meet On Strike at Pan Am en-US The New York Times https://www.nytimes.com/1985/03/09/us/union-chiefs-to-meet-on-strike-at-pan-am.html September 15, 2021 https://web.archive.org/web/20171128002540/http://www.nytimes.com/1985/03/09/us/union-chiefs-to-meet-on-strike-at-pan-am.html November 28, 2017 0362-4331 Grebey had a reputation for being a hardline negotiator with anti-union leanings, and he had previously served as a negotiator for MLB team owners during the 1981 Major League Baseball strike.Bernstein Harry March 13, 1985 Hard-Liner Negotiates for Pan Am https://www.latimes.com/archives/la-xpm-1985-03-13-fi-22192-story.html live https://web.archive.org/web/20210915121129/https://www.latimes.com/archives/la-xpm-1985-03-13-fi-22192-story.html September 15, 2021 September 15, 2021 Los Angeles Times en-US These negotiations, held at the Roosevelt Hotel in New York City,Saxon Wolfgang March 24, 1985 Tentative Agreement is Reached in Pan Am Strike en-US The New York Times https://www.nytimes.com/1985/03/24/us/tentative-agreement-is-reached-in-pan-am-strike.html September 15, 2021 https://web.archive.org/web/20150524171714/https://www.nytimes.com/1985/03/24/us/tentative-agreement-is-reached-in-pan-am-strike.html May 24, 2015 0362-4331 had been ordered by a federal mediator.Weinstein Henry March 14, 1985 Loss of Jobs Seen if Company Wins Approval to Hire Foreign Nationals : Pan Am Zeroing In on Its Striking Flight Attendants https://www.latimes.com/archives/la-xpm-1985-03-14-mn-26594-story.html live https://web.archive.org/web/20210916141906/https://www.latimes.com/archives/la-xpm-1985-03-14-mn-26594-story.html September 16, 2021 September 16, 2021 Los Angeles Times en-US On March 23, Pan Am agreed to rehire over one hundred flight attendants who had been fired for not crossing TWU's picket line.March 23, 1985 Pan Am Flight Aides Return en-US The New York Times https://www.nytimes.com/1985/03/23/us/pan-am-flight-aides-return.html September 16, 2021 https://web.archive.org/web/20150524171433/http://www.nytimes.com/1985/03/23/us/pan-am-flight-aides-return.html May 24, 2015 0362-4331 Following several days of negotiations, on March 24 both sides announced that they had come to a tentative agreement that would see an end to the strike. According to a TWU representative, the terms of the agreement were similar to the terms proposed by the company prior to the strike, but with slight changes that made them more palatable to the union. Terms included the aforementioned pay raise, alongside bonuses ranging from $600 to $1,000 and an extension in the time it takes for union members to reach the "top scale" in the company's pay scale from four to seven years. Additionally, Pan Am would be allowed to hire some part-time workers under certain circumstances.March 26, 1985 Leader Urges Union to Accept Pan Am Offer https://www.latimes.com/archives/la-xpm-1985-03-26-mn-28778-story.html September 16, 2021 Los Angeles Times en-US While TWU leadership urged members to vote to accept the agreement, some members were vocally opposed to the concessions. Additionally, the tentative agreement did not see an immediate end to the picketing, which would continue until a new contract was ratified. Voting on the contracts began on March 26.Salpukas Agis March 27, 1985 For Temporary Pan Am Worker, an "Incredible Opportunity" en-US The New York Times https://www.nytimes.com/1985/03/27/us/for-temporary-pan-am-worker-an-incredible-opportunity.html September 16, 2021 https://web.archive.org/web/20150524172145/http://www.nytimes.com/1985/03/27/us/for-temporary-pan-am-worker-an-incredible-opportunity.html May 24, 2015 0362-4331 On March 28, the contract was ratified in a vote of 3,583 for and 2,193 against, thus bringing an end to the strike.Salpukis Agis March 28, 1985 Striking Transport Workers Ratify Pan Am Contract en-US The New York Times https://www.nytimes.com/1985/03/28/us/striking-transport-workers-ratify-pan-am-contract.html September 16, 2021 https://web.archive.org/web/20210916140935/https://www.nytimes.com/1985/03/28/us/striking-transport-workers-ratify-pan-am-contract.html September 16, 2021 0362-4331 Aftermath While the strike with TWU had ended, Pan Am was still in negotiations with the flight attendants and Teamsters. However, the company came to tentative agreements with the two unions several days later, thus avoiding further strike action.Noble Kenneth B. April 2, 1985 Cut in Starting Pay Reported at Pan Am and Truck Concerns en-US The New York Times https://www.nytimes.com/1985/04/02/us/cut-in-starting-pay-reported-at-pan-am-and-truck-concerns.html September 16, 2021 https://web.archive.org/web/20171128030817/http://www.nytimes.com/1985/04/02/us/cut-in-starting-pay-reported-at-pan-am-and-truck-concerns.html November 28, 2017 0362-4331Noble Kenneth B. April 3, 1985 Teamsters and Pan Am Contracts: Dual Wage Scales May Prove Disruptive en-US The New York Times https://www.nytimes.com/1985/04/03/us/teamsters-and-pan-am-contracts-dual-wage-scales-may-prove-disruptive.html September 16, 2021 https://web.archive.org/web/20171128071001/http://www.nytimes.com/1985/04/03/us/teamsters-and-pan-am-contracts-dual-wage-scales-may-prove-disruptive.html November 28, 2017 0362-4331 The following month, Pan Am, still hurting financially, sold their Pacific Division to United Airlines.April 22, 1985 United Airlines to Buy Pan Am Pacific Division Los Angeles Times Associated Press https://www.latimes.com/archives/la-xpm-1985-04-22-mn-22005-story.html September 15, 2021 https://web.archive.org/web/20210915122506/https://www.latimes.com/archives/la-xpm-1985-04-22-mn-22005-story.html September 15, 2021 Furthermore, Pan Am's relationship with organized labor continued to be uneasy, and amidst further contract disputes in 1989, TWU voted once again to approve strike action against the company.Straight Harry June 2, 1989 Pan Am Union Votes to Strike https://www.orlandosentinel.com/news/os-xpm-1989-06-02-8906020249-story.html September 16, 2021 Orlando Sentinel Tribune Media en-US By 1991, Pan Am declared bankruptcy, with Delta Air Lines purchasing the majority of their remaining assets.Ash Andy February 21, 2021 The rise and fall of Pan Am https://www.businessinsider.com/how-pan-am-went-from-pioneering-air-travel-to-bankruptcy-2020-2 live September 17, 2021 Business Insider Axel Springer SE en-US https://web.archive.org/web/20200219222347/https://www.businessinsider.com/how-pan-am-went-from-pioneering-air-travel-to-bankruptcy-2020-2 February 19, 2020 The strike was watched closely by other airlines, as the 1980s saw a strain in the relationship between unions and airlines. Between 1980 and 1986, American airline companies saw 14 strikes,Walsh 1994 42 and in 1985 alone, both United and Alaska Airlines would also experience strike action from unions.Sleigh 1995 147 In all three of the 1985 cases, interunion support played a role in the strike.Sleigh 1995 147 However, historian David J. Walsh noted the decision by other unions at Pan Am, ALPA, to return to work after a few days highlighted the concern many in these unions had that prolonged strike action could seriously jeopardize the future of financially struggling airlines and possibly even drive them to bankruptcy.Walsh 2009 583Walsh 1994 58–59 Discussing the strike and its resolution, Walsh wrote that the TWU managed to avoid permanent replacement and secured some gains to balance out their concessions. However, the success of their strike was hindered by limited support from other unions and the recognition that a prolonged strike could potentially lead to the carrier's downfall, making other concerns irrelevant.Walsh 2009 583 Notes note References Sources Albrecht Sandra L. https://books.google.com/books?id=I_WeDQAAQBAJ The Assault on Labor: The 1986 TWA Strike and the Decline of Workers' Rights in America Lexington Books 2017 978-1-4985-3771-1 Lanham, Maryland en Sleigh Stephen R. https://books.google.com/books?id=B16RQ49xlr0C Airline Labor Relations in the Global Era: The New Frontier ILR Press 1995 978-0-87546-344-5 Cappelli Peter Peter Cappelli Ithaca, New York 212–222 en The Difficulty of Sticking Together in Tough Times Walsh David J. https://books.google.com/books?id=LbpcDwAAQBAJ On Different Planes: An Organizational Analysis of Cooperation and Conflict Among Airline Unions ILR Press 1994 978-1-5017-1740-6 Ithaca, New York en Walsh David J. https://books.google.com/books?id=xmVsBgAAQBAJ The Encyclopedia of Strikes in American History M. E. Sharpe 2009 978-1-317-45707-7 Brenner Aaron Armonk, New York 577–589 en Strikes in the U.S. Airline Industry, 1919–2004 Day Benjamin Ness Immanuel Immanuel Ness Category:1980s strikes in the United States Category:1985 in aviation Category:1985 in the United States Category:1985 labor disputes and strikes Category:Aviation history of the United States Category:Aviation strikes Category:Labor relations by company Category:Pan Am Category:Transportation labor disputes in the United States