1985 Pan Am strike facts for kids

The 1985 Pan Am strike was when thousands of workers at Pan American World Airways (Pan Am) stopped working. These workers were members of the Transport Workers Union of America (TWU). The strike started on February 28, 1985, and lasted for one month, ending on March 28.

In the 1980s, Pan Am was having money problems. Its five worker unions had agreed to take less pay to help the company. But in December 1984, their work agreements ended. The unions wanted their full pay back. The TWU, which represented about 5,800 workers, was very clear about this. On February 28, they went on strike because they couldn't agree with Pan Am.

At first, the other four unions supported the TWU. They agreed not to cross the picket lines. But after a few days, some unions, like those for pilots and flight attendants, went back to work. They worried a long strike would really hurt Pan Am. After this, the TWU and Pan Am started talking again. They reached a deal on March 23. On March 28, the union voted to accept the agreement. It was similar to what Pan Am had offered before the strike. The workers did get some pay raises each year.

This strike happened when airlines and worker unions were having a tough time. Many strikes happened at airlines between 1980 and 1986. Historians say the TWU got some good things, but also had to give up some things. The strike ended, but Pan Am still struggled. The company sold some parts of its business. In 1991, Pan Am went out of business.

Why the Strike Happened

A Pan Am commercial airliner, 1984

On December 31, 1984, the work agreements between Pan Am and five worker unions ended. These unions represented 21,000 of Pan Am's 26,000 workers. Pan Am said it needed workers to take less pay to stay financially stable. The company had lost a lot of money. For example, it lost $206.8 million in 1984. Pan Am had not made a profit since 1980. More than 8,000 workers had lost their jobs.

The unions did not want to agree to less pay anymore. In 1982, they had agreed to a pay freeze. This meant their pay stayed the same. They were told pay would go up by the end of 1984. But this did not happen. The Air Line Pilots Association (ALPA) went to court and won higher wages in December 1984. Pan Am tried to fight this, but lost in February 1985.

Around this time, Pan Am started getting ready for a possible strike. The Transport Workers Union of America (TWU) could legally strike starting February 28. The TWU represented 5,800 Pan Am workers. These included baggage handlers, flight dispatchers, food service workers, and mechanics. The TWU had already done a short strike in August 1984. Other unions said they would support the TWU if they went on strike. Pan Am even started advertising for new workers. A union leader said this was to pressure the union.

Last-Minute Talks

On February 26, the pilot's union reached a deal with Pan Am. This union represented about 1,500 pilots. The pilots agreed to some changes. Experts said the deal included 25.7 percent pay raises for pilots over 32 months. Even with this deal, the TWU still planned to strike on February 28. They had agreements with other union leaders to support their strike.

The TWU wanted a 14 percent pay raise. Their pay had been frozen since 1982. They also wanted more job security. The TWU did not want fewer benefits. They also opposed a new pay system and more part-time workers. At that time, Pan Am mechanics earned over $10,000 less than mechanics at United Airlines. Baggage handlers also earned less. The day before the strike, the union rejected Pan Am's offer. Pan Am offered four five percent pay raises over three years. They also offered bonuses for mechanics and other union members. This strike would be the first big strike at Pan Am in 20 years.

What Happened During the Strike

The strike began at 12:35 a.m. on February 28. On the first day, a TWU leader said most of Pan Am's 400 daily flights would be stopped. This would affect about 39,000 passengers. But Pan Am still managed to fly about 100 flights that day. Strikers picketed airports where Pan Am operated.

Leaders from other Pan Am unions agreed to support the TWU strike. Even the pilot's union, which had a new deal, agreed not to cross the picket line. A union leader told the Associated Press he thought the strike could last a long time. Because of the strike, people with Pan Am tickets were sent to other airlines. These included American Airlines and Eastern Air Lines. Pan Am said 60 percent of its international flights were still flying. But domestic flights (flights within the U.S.) were greatly affected.

Flights Grounded and Unions Return

By March 1, Pan Am was not flying any domestic flights. No talks were planned between the TWU and Pan Am. A company representative said they wanted the strike to end quickly. But agreeing to the TWU's terms would hurt the company financially. An economics professor said, "A long strike can kill Pan Am." An expert said the strike could stop Pan Am from making a profit that year.

By early March, Pan Am's flights dropped to about 30 worldwide. This included 40 percent of its international flights. There were no flights in the United States. By March 6, the Chicago Tribune reported that the flight attendants' union (IUFA) set a strike deadline for April 1. If no deal was made, they would also strike.

However, on that same day, the pilot's union (ALPA) agreed to go back to work. This was a big blow to the strike. Pan Am announced they would start flying more flights. Pan Am CEO C. Edward Acker praised the pilots for supporting the company. But a TWU leader called the pilots "scabs" (a term for workers who cross a picket line). On March 7, flight engineers also went back to work. Some flight attendants did too. Pan Am also used some managers as temporary flight attendants. With these changes, Pan Am hoped to have 50 percent of its normal flights running soon. But Pan Am was still losing about $5 million every day. Both the IUFA and the Teamsters union still had their April 1 strike deadline.

Negotiations and Agreement

On March 9, the TWU and Pan Am announced their first talks since the strike began. They were set for the next day. Pan Am was represented by Ray Grebey, a well-known labor negotiator. Grebey was known for being tough and against unions. He had negotiated for MLB team owners during the 1981 Major League Baseball strike. A federal mediator ordered these talks. They happened at the Roosevelt Hotel in New York City.

On March 23, Pan Am agreed to rehire over one hundred flight attendants. They had been fired for not crossing the TWU's picket line. After several days of talks, both sides announced a deal on March 24. This deal would end the strike. A TWU representative said the terms were similar to Pan Am's earlier offer. But there were small changes that made them better for the union. The deal included the pay raise mentioned earlier. It also had bonuses from $600 to $1,000. It would take longer for union members to reach the highest pay level. Pan Am could also hire some part-time workers in certain situations.

TWU leaders told members to vote yes for the deal. But some members were against it. The picketing did not stop right away. It continued until the new agreement was officially approved. Voting on the contracts began on March 26. On March 28, the contract was approved by a vote of 3,583 for and 2,193 against. This officially ended the strike.

What Happened After the Strike

Even though the strike with the TWU ended, Pan Am was still talking with the flight attendants and Teamsters unions. But the company reached agreements with them a few days later. This avoided more strikes. Later that year, Pan Am was still losing money. It sold its Pacific routes to United Airlines.

Pan Am's relationship with its unions remained difficult. In 1989, the TWU voted again to strike against the company. By 1991, Pan Am declared bankruptcy. This means it could not pay its debts. Delta Air Lines bought most of what was left of Pan Am.

Other airlines watched this strike closely. The 1980s were a hard time for unions and airlines. Between 1980 and 1986, American airlines had 14 strikes. In 1985 alone, United and Alaska Airlines also had strikes. In all three 1985 cases, support between different unions was important. However, historian David J. Walsh noted that the decision by other unions at Pan Am, like ALPA, to return to work showed a concern. Many in these unions worried that a long strike could seriously harm the airline. It could even make them go out of business.

Walsh said that the TWU avoided the worst outcome. They were not replaced by new workers. They also gained some things, even with some compromises. But their strike was hurt because other unions did not fully support them. Also, unions realized that a very long strike could cause the airline to fail. If the airline failed, all other issues would not matter.