The New Piper employees voted to join the International Association of Machinists and Aerospace Workers in October 2003, after New Piper cut wages by 6 percent. They’ve been waiting for a contract ever since. “The [union] doesn’t seem to appreciate what we’re really up against,” Piper President Chuck Suma said in a statement. “This isn’t about being stingy with company money … This is about working to make Piper a company that will survive.” New Piper delivered 37 aircraft in the first quarter of 2005, with billings of about $21 million, according to the General Aviation Manufacturers Association. That was down from 53 aircraft shipped in the same period a year earlier. But there may be very natural reasons for that. The company blamed the drop on delays caused by the hurricanes.
…As Company Recovery Continues
Key Takeaways:
- New Piper employees unionized in October 2003 after a 6% wage cut and have since been awaiting a contract.
- Piper's president argues that contract delays are due to the company's struggle for survival, not a refusal to pay.
- The company experienced a drop in aircraft deliveries in Q1 2005 compared to the previous year, attributing the decline to hurricane-related delays.
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