DOJ: JetBlue, American Airlines Deal is a “De-Facto Merger.”

DOJ: JetBlue, American Airlines Deal is a “De-Facto Merger.”

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DOJ: JetBlue, American Airlines Deal is a “De-Facto Merger.”

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This sweeping partnership is unprecedented among domestic airlines and amounts to a de facto merger between American and JetBlue.

The U.S. Department of Justice, together with Attorneys General in six states and the District of Columbia, is suing to stop the virtual merger of  American Airlines and JetBlue. The two airlines are trying to consolidate their Boston and New York City operations with the “Northeast Partnership,” as the arrangement is called.

In a civil antitrust complaint, the DOJ argues that the partnership will act as a de-facto merger, eliminating important competition in the New York and Boston markets, and greatly diminish competition between the two carriers everywhere they interact. The deal would create a level of coordination that violates antitrust laws, according to the DOJ.

If allowed to proceed, the near-merger will further consolidate an already highly concentrated industry.

Federal law prevents a single company, entity, or partnership from eliminating competition within a given market, and creating a monopoly on goods and services. Monopolistic power allows companies to completely control the prices and availability of their products, creating dangerous economic bottlenecks that can destabilize markets. According to the DOJ allegations, this is exactly what American Airlines has been attempting to do for years. American executives have created informal mergers since the airline cannot legally control more markets through a legal merger process. 

The International Association of Machinists and Aerospace Workers union has expressed concern that the informal merger between American Airlines and JetBlue could threaten the jobs of JetBlue Ground Operations Crewmembers. In examples where the two airlines have overlapping services, union workers at American would be impossible to remove from their jobs, thanks to unbreakable job protections that American ramp workers negotiated and ratified in 2020. However, non-union JetBlue Crewmembers would have no such job protections, and could potentially be fired and replaced with the unionized workers at American. 

JetBlue does not formally lay off non-union employees, the company just fires them. 

From the Department of Justice statement:
“Millions of consumers across America rely on air travel every day for work, to visit family, or to take vacations. Fair competition is essential to ensuring they can fly affordably and safely,” said Attorney General Merrick B. Garland. “In an industry where just four airlines control more than 80% of domestic air travel, American Airlines’ ‘alliance’ with JetBlue is, in fact, an unprecedented maneuver to further consolidate the industry. It would result in higher fares, fewer choices, and lower quality service if allowed to continue. The complaint filed today demonstrates the Justice Department’s commitment to ensuring economic opportunity and fairness by protecting consumers and competition.”

“The Northeast Alliance would eliminate significant competition in this important industry,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “This sweeping partnership is unprecedented among domestic airlines and amounts to a de facto merger between American and JetBlue in Boston and New York City. The impact on consumers extends far beyond Massachusetts and New York, as evidenced by the participation and our ongoing cooperation with Attorneys General from across the country, including Arizona, California, Florida, Massachusetts, Pennsylvania, Virginia and the District of Columbia, in this lawsuit.” 

The Northeast Alliance combines American’s and JetBlue’s operations at four major airports: Boston Logan, John F. Kennedy, LaGuardia, and Newark Liberty. The airlines have committed to coordinate “on all aspects” of network planning, including which routes to fly, when to fly them, who will fly them and what size planes to use for each flight. The two airlines will also share revenues earned at these airports, eliminating their incentives to compete. The Northeast Alliance will also allow the parties to pool their gates and takeoff and landing authorizations, known as “slots.” According to the complaint, this unprecedented combination would raise prices and reduce choices for air passengers traveling to and from Boston and New York City. 

As alleged in the complaint, American is the largest airline in the world. Just four airlines — American, Delta, United, and Southwest — collectively control 80% of domestic air travel. According to the complaint, American has relentlessly pursued an industry consolidation strategy in the United States and worldwide. Unable to combine with foreign airlines through formal mergers, American has pursued consolidation through a series of international joint ventures. The complaint alleges that JetBlue’s CEO stated, “it may look as if a dozen or more airlines [are] providing service. But when you go under the surface, it’s really just three big mega-alliances controlling 87% of the traffic…Consumers effectively have very little choice in markets where JVs have a stranglehold – and they also face higher fares.” The Justice Department alleges that American now seeks to import this strategy to domestic air travel.

According to the complaint, JetBlue has positioned itself as an essential source of competition against American and the other large airlines, particularly in the northeast. According to the complaint, JetBlue’s reputation for lowering prices is so established that the industry refers to it as the “JetBlue Effect.” JetBlue’s internal estimates show that it has saved customers at least $10 billion since its launch, offering lower fares and better service and forcing its competitors to do the same.     

According to the complaint, the Northeast Alliance will cause hundreds of millions of dollars in harm to air passengers across the country through higher fares and reduced choice. The complaint alleges that JetBlue and American planned to compete more intensely before entering the Northeast Alliance, including Boston, New York City, and other areas. If allowed to proceed, the Northeast Alliance would eliminate this important existing and future competition — creating, as American’s senior executives put it, “further domestic consolidation.” The Northeast Alliance will dampen American’s incentive to expand service elsewhere in its network and will significantly reduce JetBlue’s incentives to challenge its much more significant partner across the country.  

American Airlines Group Inc. is a Delaware corporation with its headquarters in Fort Worth, Texas. In 2019, it flew over 215 million passengers to approximately 365 locations worldwide, earning about $45 billion in revenues.  

JetBlue Airways Corporation is a Delaware corporation with its headquarters in Long Island City, New York. In 2019, JetBlue flew over 42 million passengers to approximately 100 locations worldwide, earning about $8 billion in revenue. 

 

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Watch This Couple Scream at JetBlue Crewmembers, Get Thrown Off Flight

Watch This Couple Scream at JetBlue Crewmembers, Get Thrown Off Flight

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Warning: Adult Language and Content: The tantrum is the latest in a record-shattering number of air-rage incidents that have happened this year. This year, entitled and enraged passengers have been fined more than $1 million, resulting from more than 3,000 serious rage incidents in 2021.

Watch This Couple Scream at JetBlue Crewmembers, Get Thrown Off Flight

Last week, flight crews booted a couple from a JetBlue flight to San Diego during a screaming, drunken tirade over masks. As usual, the event was captured on video and posted online for all to enjoy.

In the video posted on Reddit, a man can be seen screaming and grabbing at a male flight attendant who, he said, did not give him enough warning that his nose needed to go in his mask.  “You gave me one “f-ing warning,” he shrieked in the viral video.  “I pulled it up the second he said something,” he continued. “The second he said something, I pulled it over my nose,” he cried in a high-pitched wail as cellphones recorded.

At one point, Alice Runkevich, who recorded the video, grabs some snacks and turns her attention to a female passenger accompanying the man. As she enters the video, his counterpart is correctly wearing her mask, nose in, but she seems to lose those skills soon after. Stumbling and slurring her speech, she pleads to the other passengers that they tried to follow the Federally-mandated mask rules but just couldn’t satisfy the flight crews.  “We’re being kicked off the flight and we don’t know why,” she explains, adding, “we’re Americans.”

Despite this, they were both removed from the flight before it left Fort Lauderdale, to the delight of onlooking passengers. Flight B6 529 had been delayed for several hours before the incident, which went down while the plane was on the tarmac.

JetBlue said in a statement that the would-be travelers had been asked “multiple times but would not comply with the federal mask mandate.”

“Eventually the customers were asked to leave the aircraft at which time one customer became verbally and physically aggressive toward crewmembers before eventually exiting the aircraft,” the carrier said in a statement to local media outlets. “The customers will not be allowed to fly JetBlue in the future.”

The tantrum is the latest in a record-shattering number of air-rage incidents that have happened this year. This year, entitled and enraged passengers have been fined more than $1 million, resulting from more than 3,000 serious rage incidents in 2021. According to IAMAW District 141 Legislative Director David Roderick, the attacks are not limited to in-flight; they are becoming a problem for gate and ticket counter agents, as well. 

“it’s really not just airline workers getting abused this way,” said Roderick. “There have been 85 assaults on uniformed TSA Agents this year, too.” Roderick suggested that increased penalties for those who abuse airline workers and other airport staff may need to be increased to discourage more assaults. “Most of these attacks are provoked by Federal masking rules and alcohol,” he said. “We don’t make Federal masking rules, no airline does. We just have to enforce them – which puts our members in danger too often.”

Roderick is participating in discussions with a coalition of labor unions, including the Chicago Federation of Labor to develop legislative strategies to deal with the rise in air rage incidents. On September 4th, Roderick and representatives from the Airport Labor Committee met with AFL-CIO President Robert Reiter and Vice President Tefere Gebre to discuss the issue. “The main goal was finding ways to get more union members involved in this issue,” Roderick said of the meeting.

In September, the Biden Administration doubled the penalties for not wearing masks at airports and aboard aircraft to between $500 and $1,000. Fines for repeated violations can go as high as $3,000. Disrupting or attempting to intimidate or interfere with a flight crew is now a federal offense that can potentially result in prison time. 

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Survey: 82% of JetBlue Ground Workers Worry About Getting Fired

Survey: 82% of JetBlue Ground Workers Worry About Getting Fired

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Survey: 82% of JetBlue Ground Workers Worry About Getting Fired

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A recent survey of 900 Ground Operations workers at JetBlue found that a stunning 82% of respondents reported fearing they might lose their jobs as the pandemic ravaged the airline industry in 2020.

JetBlue Ground Operations Crewmembers can support union organizing by signing a card authorizing a union vote. Add your name at the Justice at JetBlue webpage.

JetBlue Ground Operations workers load and unload baggage, among other tasks, such as moving and inspecting aircraft on the tarmac and at the gate.

While pandemic-related slowdowns in the airline industry are likely driving the unusually high fear of terminations, the survey paints a picture of a tense workplace at JetBlue. 77% of JetBlue Ground Operations workers rated the professionalism of their supervisors at three stars or less on a scale of 0-5, with 5 being the best score. Only 23% of participants gave their supervisors a score higher than three stars. 68% said their supervisors do not respect Ground Operations employees, and 77% reported that management had inconsistent work rules. Complaints of favoritism have plagued the airline for years.

Overall, JetBlue Ground Operations Crewmembers rated the JetBlue workplace three stars out of five, indicating widespread dissatisfaction. 

Union organizers at JetBlue have observed a pervasive climate of fear at the airline. Frank Giannola, Director of Membership Services at District 141 of the International Association of Machinists and Aerospace Workers, suggested the fear of supervisors is fueling in part a recent uptick in union interest at JetBlue. “These guys depend on supervisor grace at an existential level,” he said. “Supervisors at JetBlue have a lot of power compared to other airlines, and a lot of them are bullies,” Giannola said.  “At JetBlue, access to overtime, job security… all of it – is only as secure as their most sadistic supervisor allows it to be.”

Ground Ops: Authorize a union vote at JetBlue >>

One unusual way that JetBlue supervisors exert undue power at the airline is centered on random drug screenings. According to Giannola, management has weaponized random drug tests at JetBlue. The worry isn’t limited to those who are suspected of misuse of illicit substances. “These guys are worried about getting sent home without pay while they wait for the results of a BS drug test to come back,” Giannola said. “This kind of thing is completely unheard of at a union workplace,” he said. “They just don’t mess with union workers like that.”

While low pay and overall compensation were top issues for GO Crewmembers, they were closely tied to the potential for supervisors at the airline to abuse their power. When asked how fairly supervisors applied overtime rules, 86% of respondents awarded JetBlue three stars or less, with only 14% giving the airline a better than mediocre score. Another 14% rated the overtime rules at JetBlue with only one star. Non-union employees can be forced to work past their shifts without being paid a premium for overtime, as long as they don’t go past 40 hours in a week. JetBlue is toying with the idea of changing this rule but hasn’t committed to anything yet. 

IAMAW union contracts require premium overtime pay to kick in when a worker goes past their scheduled work hours, with rules that allow for time-and-a-half and double-time overtime pay. At United, if ground workers are required to work mandatory overtime for two days in a row, their contract requires them to be paid double-time on the second day, and on every consecutive day after that.  

Union members working at airlines could not be subjected to involuntary layoffs throughout the pandemic, including having their hours reduced from full-time to part-time. Airlines that wanted to reduce their workforces had to pay bonuses to encourage retirements. Giannola suggested that JetBlue could avoid layoffs altogether because managers can summarily fire Ground Operations workers instead. “Through the pandemic, if JetBlue wanted to reduce its workforce, they could just fire any non-union people they wanted, for any reason or no stated reason at all. If I had to guess why so many Ground Operations workers were worried about losing their jobs, that would probably be it.”

The survey of 985 current and former JetBlue Ground Operations workers was conducted by phone and email between July 7 and July 23, 2021. 

TAKE ACTION: Authorize a Union Vote at JetBlue Ground Ops>>

 

JetBlue Workplace Survey Results

Overall, how would you rate JetBlue as an employer?

JetBlue Ground Operations Crewmembers rate their workplace three stars out of a possible five, with five being the best score and one being the worst.
Breakdown:

Very good: 14%
Good: 9%
Mediocre: 45%
Poor: 23%
Very Poor: 9%

How would you rate the professionalism of your supervisors?

Very good: 9%
Good: 14%
Mediocre: 36%
Poor: 27%
Very Poor: 14%

Please rate your supervisors on how fairly they enforce work rules.

Very good: 9%
Good: 14%
Mediocre: 27%
Poor: 32%
Very Poor: 18%

Please rate your supervisors on how respectful they are to Ground Ops Crewmembers.

Very good: 14%
Good: 18%
Mediocre: 32%
Poor: 18%
Very Poor: 18%

Please rate the likelihood that, if a JetBlue employee works hard and follows the rules, they will be able to keep their job.

Very good: 23%
Good: 27%
Mediocre: 23%
Poor: 14%
Very Poor: 14%

In the past year, have you personally been worried about losing your job for any reason?

Yes: 82%
No: 18%

Please rate JetBlue policies on BREAK and LUNCH PERIODS.

Very good: 9%
Good: 9%
Mediocre: 27%
Poor: 18%
Very Poor: 36%

How would you rate the current OVERTIME RULES at JetBlue?

Very good: 5%
Good: 9%
Mediocre: 36%
Poor: 36%
Very Poor: 14%

Please rate the current SAFETY PROGRAMS at JetBlue.

Very good: 14%
Good: 9%
Mediocre: 45%
Poor: 9%
Very Poor: 23%

In the past year, have you personally been injured at work?

Yes: 27%
No: 59%
Would rather not say: 14%

(If yes), did your injury result in a loss of work hours? Did you need to miss work as a result?

Yes: 67%
No: 33%

Please rate the PAY AND COMPENSATION at JetBlue.

Very good: 5%
Good: 5%
Mediocre: 45%
Poor: 23%
Very Poor: 23%

I feel that my company values the work I do.

Strongly Agree: 5%
Agree: 5%
Neutral: 27%
Disagree: 27%
Strongly Disagree: 36%

I get enough training and support to do my job properly.

Strongly Agree: 9%
Agree: 27%
Neutral: 23%
Disagree: 27%
Strongly Disagree: 27%

I always feel safe at work.

Strongly Agree: 9%
Agree: 23%
Neutral: 27%
Disagree: 23%
Strongly Disagree: 18%

Workplace Priorities for JetBlue Ground Operations

Premium Pay for certain shifts / Net promoter score: 81.82
Longevity Pay Increases / Net promoter score: 81.82
Profit Sharing Increase / Net promoter score: 72.73
Triple-Time for Holidays Worked / Net promoter score: 81.82
More Defined Holidays / Net promoter score: 68.18
Improved Work – Life Balance / Net promoter score: 88.5

 

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Primer on Inside Organizing Committees

Primer on Inside Organizing Committees

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Primer on Inside Organizing Committees

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Inside Organizing Committees, often referred to as “Inside Committees” are a key part of organizing a workplace. Here’s a little more information about how they work.

Got Union questions? Call or text a Union Representative at (954) 298-9138. JetBlue Ground Operations workers can authorize a union vote at the Justice at JetBlue page.

Unions do virtually all their work through committees. Typically, committees are formed by the President of the Local Lodge, following rules that are clearly laid out in the Lodge’s By-Laws. Some committees are mandatory, such as the committee that polices company efforts to violate agreements with the union, called a Grievance Committee. 

Other committees are formed to ensure that a particular goal is met. For example, most Machinists and Aerospace Lodges will maintain Retirees, Community Service, and public outreach committees, among others. The President has the authority to form a committee to tackle any task that might arise. 

Committees operate as a team of union members who can agree among themselves on every aspect of the committee. Members will determine when they will meet, how and whether to accept new members and if they will need to raise money to meet their goals. 

WHAT ARE INSIDE COMMITTEES?
This brings us to the Inside Organizing Committee. This committee is unique because it actually has to predate the formation of the union itself. It’s a case of which comes first; the chicken or the egg? Organizing Committees have to form without the structures of By-Laws, without experienced union officers among its members. Inside Organising Committees, called “Inside Committees,” must start before a Local Lodge even exists for that workplace.  

Another unique aspect of Inside Committees is that they may not be made up of union members (yet!). Inside Committees are created from the employees within the organizing workplace itself. These people then work with Union Organizers who are part of a nearby Local Lodge. 

The first people who approach a union organizer are likely to participate in an Inside Committee in some capacity. Sometimes this activity is informal and just consists of offering advice to the organizers. Other Insiders will take a much more active role. These activists will become the backbone of the union at that workplace. Every Local Lodge has high-ranking officers who once served together on an Inside Committee. This is especially true at newer Local Lodges that can still recall what life was like before they were union. Veterans of organizing campaigns will be widely known at their workplaces as a trusted source of union information. Many Inside Committee members will hold elected union positions and permanent committee assignments once a Local Lodge is formed or joined. 

Union Organizers who work for other employers will want to know more about the workplace; Inside Committees are experts on such topics. 

Joining or starting an Inside Committee requires contacting an Organizer. Very often, Inside Committees conduct their operations in secret, especially at the beginning of campaigns. Therefore, an interested party might not know how to contact them directly. The Union Organizers can help get everyone connected without potentially exposing them to company retaliation. Company intimidation is unlawful but remains a concern at some workplaces that do not have experience with a union. 

WORKING WITH UNION ORGANIZERS – PHASE ONE
The first task of an Inside Committee should be to develop a close working relationship with Union Organizers. Organizers can provide you with the tools you need; handouts, union authorization cards, and training. But, they cannot do the actual work of organizing your workplace. No outsider can possibly know the intricate relationships and personal networks at your job as well as you do. As critical as Union Organizers will be, they will depend on you and your Inside Committee to be effective. They are not “in charge.” The Union Organizers are your reinforcements and sponsors and will follow your directives. Their role is to provide you with the tools that you require to run a successful organizing campaign. Remember, your Inside Committee is not a part of a Local Lodge yet. Therefore, you probably won’t have easy access to printers, meeting locations, and office supplies. Your Union Organizers can connect you to a sponsor Local Lodge and ensure that your campaign has access to its assets. 

Throughout the organizing effort, the Inside Committee will be running the show.

THE MISSION OF THE INSIDE COMMITTEE – PHASE TWO
As a member of an Inside Committee, you will discuss workplace issues and concerns with other trusted committee members. You will begin laying the groundwork for the formation of the committee itself. You will decide on meeting times and locations, develop formal points of contact with Union Organizers, and appoint a chairperson. If you have a healthy workplace culture, you may even decide that you want to create a liaison between your committee and management. 

Once you create clear lines of communication with Union Organizers and get plugged into a sponsor Local Lodge, the real work of your committee can begin. Organizing a workplace isn’t easy. As every activist knows, the first thing to do when you need to accomplish something difficult is to get help. 

The second phase of your campaign, therefore, should center around outreach. Your members should find other pro-union workers and develop plans to advance the cause. Ideally, your committee will expand to include representatives from every shift and work area at your station. 

Outreach can include:

  • Social media groups and chat rooms.
  • Casual conversations with coworkers.
  • Posting meeting information on bulletin boards.

As union power grows, you may decide to conduct formal studies of your work area, such as tracking terminations, incidents, and injuries and making this information available. You can also run regular text and email blasts and conduct polls and surveys. 

This work will provide your committee with an unparalleled view of the workforce. You will know what the priorities of your workplace are, what problems may exist, and determine how unification can advance your interests. 

PHASE THREE AND BEYOND: GETTING TO AN ELECTION
To get to a union vote, a majority of your coworkers must authorize it. This is done by petition. Workers sign specific cards called “Authorization Cards.” Once most of your coworkers have signed and return authorization cards, a formal vote will be held to determine if you have successfully organized your workgroup into a union. 

Your committee can get these cards from your Union Organizer. Once they are filled out, you can return them to your organizer, who will deliver them to the Federal Government on your behalf. Organizers will take care of all the legal work using experts who work in other union areas. 

Campaigns like the ongoing effort at JetBlue can also share online links that allow cards to be obtained away from work.  

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Here’s How JetBlue Ground Ops Can Get Pay, Benefits, Positions Back

Here’s How JetBlue Ground Ops Can Get Pay, Benefits, Positions Back

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Here’s How JetBlue Ground Ops Can Get Pay, Benefits, Positions Back

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There’s no substitute for full union rights and collective bargaining when company executives try to cut pay, jobs, and positions.

But, that doesn’t mean non-union workers are completely helpless. They can still organize. And, when workers organize, companies take them seriously.

This spring, JetBlue announced plans to enact pay and benefit freezes that will hit more than half of the 2,500 workers targeted by the airline. The carrier also announced that it would eliminate hundreds of lead and training positions just after Christmas. However, JetBlue Ground Ops Crewmembers can use classic union negotiating tactics to get them back. Even though they are non-union right now.

The changes come during an unprecedented surge in demand for air travel and while most airlines, including JetBlue, are aggressively working to attract new hires.

The exact level of cuts is unclear since JetBlue is not making public exactly how much money it hopes to take from employees. But, according to Frank Giannola, District Director of Membership Services at the IAMAW, the losses will be painful and come as many front-line workers are already struggling.

“These cutbacks will take millions of dollars worth of wages and advancement opportunities away from JetBlue Crewmembers,” Giannola said. “These guys are breaking their backs right now, dealing with passenger loads that are every bit as high as they were in 2019,” he said.

“They’ve already lost parental leave – during a pandemic,” Giannola said. “Now they’re going to lose all the future income that they would have made as leads. Promised raises did not come in, and I can’t imagine the company will want to restore the pay that was lost while raises have been frozen.” 

JetBlue also announced that “non-union” employees would be “safe” from furloughs until September 2021. 

However, laying off non-union, non-contracted workers is unnecessary since JetBlue can simply fire these employees whenever they want. In addition, merely firing extra employees allows the company to bring in fresh new hires later, at lower wages and without back pay or administrative and retraining costs.  So, it’s no surprise that JetBlue won’t spend the extra time and money on non-union layoffs when non-union terminations are so much cheaper and easier. 

While the chances of restoring these losses may look bleak for non-union employees, Giannola says not to count Crewmembers out too early. “I’ve known JetBlue Crewmembers for years,” Giannola says. “These guys have a lot more fight in them.” 

Giannola says there are options for Ground Operations Crewmembers who want to get their pay, parental leave, and lead and training positions restored. “They can absolutely get these things back,” Giannola said. 

Step one is allowing the company to see that there’s a renewed interest in authorizing a union vote over these pay and position cuts, Giannola said. “As union members, it would be impossible to cut pay, positions, and benefits in the first place,” he said. And reversing the losses would be sure to be a significant focus during union negotiations. 

Electing a union, getting a contract negotiated, and having it ratified might be the perfect long-term solution, but Giannola stressed that near-term victories are possible. The very act of talking about cuts in the context of union organizing should be taken as a negotiating tactic in and of itself.  

“These executives are desperate to avoid having more union employees,” he said. “If they have to choose between parental leave and a few dollars an hour in pay, I know exactly what they’d choose,” he said. “If they see Crewmembers authorizing a union vote over these issues, they might just make these issues go away.”

Giannola explained that a classic union-busting move is to willingly increase pay and benefits in an attempt to take the heat out of union organizing efforts. Thus, JetBlue could very well reverse the cuts if they think that doing so might slow down a union drive.

“We can do this the easy way, or we can do it the hard way,” he said. 

JetBlue Ground Operations Crewmembers can have a union authorization card mailed to them by texting their name and mailing address to (954) 298-9138 or by visiting IAMJetBlue.com

 

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