Machinist Union Weathers the Storm

It is said that in the event of a nuclear holocaust, only Cher and cockroaches will have enough resilience to survive.

Perhaps the International Association of Machinists should be added to the list.

Over the past five years, in a wave of downsizing triggered by a slowing economy, the rapid growth of low-fare carriers and the 2001 terrorist attacks, the airline industry has shed 155,000 jobs. The IAM lost 40,000 of those, and also signed a series of concessionary contracts in bankruptcy court, where a company can revise labor contracts that hinder its reorganization.

But the union also recorded its share of victories. In an age of defined-contribution 401K retirement plans, it preserved defined-benefit pension plans at Northwest Airlines(NWACQ), United Airlines(UAUA) and US Airways(LCC). It staged a successful strike at Boeing(BA). And last month, it added 3,400 new members at US Airways.

The IAM also benefited from comparison with a rival union, the Aircraft Mechanics Fraternal Association. AMFA replaced the IAM as representative of Northwest's mechanics after a bitter 1998 election. Last year, AMFA staged a disastrous strike that caused nearly all of its members to lose their jobs.

Now, as the industry's post-bankruptcy era gets under way, the IAM seems poised to negotiate from relative strength. It has about 730,000 active members including about 100,000 in the airline industry, the most of any union.