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Winpisinger Center Director and Educator, Chris Wagoner.
Machinists District 141
15 November 2022
The IAM is mourning the passing of Chris Wagoner, who recently retired as Director of the IAM’s William W. Winpisinger Education and Technology Center. Wagoner, 60, with his family by his side, passed away after a brief illness on Sunday, November 20, 2022.
Over his 33-year IAM career, Wagoner dedicated his life to training and educating union activists at the Winpisinger Center, a campus in Hollywood, MD that many call the IAM’s “crown jewel.”
After hiring on as an education representative at the Winpisinger Center in 1989, Wagoner became the center’s assistant director in 2005. He served as director since 2007. Wagoner retired from the IAM in July 2022.
“The entire IAM is simply heartbroken at the loss of such an iconic, caring and influential figure in our union,” said IAM International President Robert Martinez Jr. “Chris has been a great friend and confidant to myself and so many others through more than three decades of challenges and triumphs in the IAM. Our memories of Chris’s unyielding love for our union and our membership will forever live on for so many whom he touched throughout the years. We send our deepest condolences to his wife Jill, daughter Mollie, daughter-in-law Qifei Zeng, and everyone who loved and cherished what Chris brought to our lives on and off the job.”
Wagoner was a constant figure at the Winpisinger Center, where thousands of members, officers, and staff every year participated in leadership, organizing, negotiations, and other programs that built power and knowledge in the IAM. Wagoner would make a point to visit with every class he could, sharing, among many things, that the Winpisinger Center, and the labor movement, must be an inclusive, diverse and welcoming environment, free of any bias or discrimination for all.
“Wimpy’s vision created the Winpisinger Center, but no single person gave it more life and purpose than Chris Wagoner,” said Winpisinger Center Director Mary McHugh. “His contribution to our union is simply immeasurable.”
Wagoner oversaw a massive expansion in programming at the Winpisinger Center, including negotiations preparation, remote learning, and Spanish-language classes. He led the Center through the COVID-19 pandemic, adapting quickly to remote learning and fighting tirelessly to rehire Winpisinger Center staff and reopen the facility with necessary precautions.
Prior to coming to the Winpisinger Center, Wagoner worked as an aide for the Committee on Labor and Industry in the Kentucky General Assembly. He also worked in the Labor Education Program and the Illinois Hazardous Waste Worker Training Program at the University of Illinois. Wagoner received his bachelor of science degree in political science from the University of Louisville and his master of arts degree in industrial relations from the University of Illinois at Champaign-Urbana.
In lieu of flowers, the Wagoner family asks that donations go to the IAM’s favorite charity, Guide Dogs of America/Tender Loving Canines, in memory of Chris Wagoner.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
15 November 2022
Chris Wagoner, the longtime Director of the Winpisinger Education and Technology Center, has passed away.
The IAM is mourning the passing of Chris Wagoner, who recently retired as Director of the IAM’s William W. Winpisinger Education and Technology Center. Wagoner, 60, with his family by his side, passed away after a brief illness on Sunday, November 20, 2022.
Over his 33-year IAM career, Wagoner dedicated his life to training and educating union activists at the Winpisinger Center, a campus in Hollywood, MD that many call the IAM’s “crown jewel.”
After hiring on as an education representative at the Winpisinger Center in 1989, Wagoner became the center’s assistant director in 2005. He served as director since 2007. Wagoner retired from the IAM in July 2022.
“The entire IAM is simply heartbroken at the loss of such an iconic, caring and influential figure in our union,” said IAM International President Robert Martinez Jr. “Chris has been a great friend and confidant to myself and so many others through more than three decades of challenges and triumphs in the IAM. Our memories of Chris’s unyielding love for our union and our membership will forever live on for so many whom he touched throughout the years. We send our deepest condolences to his wife Jill, daughter Mollie, daughter-in-law Qifei Zeng, and everyone who loved and cherished what Chris brought to our lives on and off the job.”
Wagoner was a constant figure at the Winpisinger Center, where thousands of members, officers and staff every year participated in leadership, organizing, negotiations and other programs that built power and knowledge in the IAM. Wagoner would make a point to visit with every class he could, sharing, among many things, that the Winpisinger Center, and the labor movement, must be an inclusive, diverse and welcoming environment, free of any bias or discrimination for all.
“Wimpy’s vision created the Winpisinger Center, but no single person gave it more life and purpose than Chris Wagoner,” said Winpisinger Center Director Mary McHugh. “His contribution to our union is simply immeasurable.”
Wagoner oversaw a massive expansion in programming at the Winpisinger Center, including negotiations preparation, remote learning, and Spanish-language classes. He led the Center through the COVID-19 pandemic, adapting quickly to remote learning and fighting tirelessly to rehire Winpisinger Center staff and reopen the facility with necessary precautions.
Prior to coming to the Winpisinger Center, Wagoner worked as an aide for the Committee on Labor and Industry in the Kentucky General Assembly. He also worked in the Labor Education Program and the Illinois Hazardous Waste Worker Training Program at the University of Illinois. Wagoner received his bachelor of science degree in political science from the University of Louisville and his master of arts degree in industrial relations from the University of Illinois at Champaign-Urbana.
In lieu of flowers, the Wagoner family asks that donations go to the IAM’s favorite charity, Guide Dogs of America/Tender Loving Canines, in memory of Chris Wagoner.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
Justice at JetBlue
22 November 2022
The airline industry, as we know, is a 24/7 operation, and working on a holiday is part of the job. However, how we are COMPENSATED for working on a holiday is a totally different issue. As you’ll see below, UNIONIZED Ground Ops workers at every major airline have NEGOTIATED better pay for having to work on Thanksgiving.
The only reason JetBlue Crewmembers earn less for working on Thanksgiving is because JetBlue management makes all the rules and Crewmembers have NO VOICE or VOTE in the creation of those rules. Having a UNION and the right to NEGOTIATE A CONTRACT will change that.
On average, top-of-scale Unionized GO airline workers earn between $164.23 and $204.23 MORE than GO Crewmembers just for Thanksgiving! If we also consider working on Christmas, then Unionized GO workers earn between $328.46 and $408.46 MORE.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
EAP Peer Coordinators:
Thank you for the time you are dedicating to EAP and helping others. I believe helping others is core to all of our purpose!
Bryan,
Bryan Hutchinson, M.S.
EAP Director
bhutchinson@iam141.org
Cell: 303-229-5117
Domestic Abuse Awareness...
United Pilots Ratify New...
LEADS Program Particpants pose for a Holiday photo with District 141 President, Mike Klemm (seated, on right) and Secretary-Treasurer, Alex Gerulis.
Machinists District 141
15 November 2022
In September, Marilyn Loden, the author and activist who coined the term “Glass Ceiling,” died at the age of 76 after a battle with cancer. Loden first used the phrase in a panel discussion at the 1978 Women’s Action Alliance Conference in New York City, and it quickly caught fire. For years, women had noticed an invisible barrier preventing them from reaching the highest rungs of power. The term perfectly describes the invisible barriers preventing women from attaining leadership roles. According to the Bureau of Labor Statistics, 47% of the overall American workforce is female, and a majority, 50.2%, of college-educated workers are women. Yet, only 27% of women hold positions of real authority within their organizations.
Historically, labor unions have been at the forefront of efforts to create a more gender-neutral work environment. The Machinists Union is conducting an innovative new strategy for identifying and recruiting top female talent, which might serve as a template for other organizations.
In 2021 the Machinists Union announced the creation of the Leadership Excellence Assembly of Dedicated Sisters (LEADS) program. The mission of the LEADS program is to prepare and empower IAM sisters to step into leadership roles, emphasizing the areas of Business Representatives, Directing Business Representatives, and President/Directing General Chairs.
“This has been a wonderful success so far,” said District President Mike Klemm, a prominent booster of the effort to bring more women into leadership positions. “We are just ending the halfway mark for the first generation of this important work, and I couldn’t be more proud of how much new female talent we’ve been able to find and elevate.”
The LEADS Program does this by having female union leadership select and mentor rising female talent from the frontlines – giving them access to real-world leadership-building situations and learning opportunities.
President and Directing General Chairman (PDGC), Mike Klemm, took this initiative seriously, implemented the program within District Lodge 141, and placed one of our most vigorous sisters in a mentorship role. Assistant General Chair (AGC) Terry Stansbury was tapped for this program as a mentor and has taken on the assignment with vigor.
Assistant General Chair (AGC) Stansbury has a long career in the airline industry that began February 12th, 1989, at United Airlines in Ontario, California. Terry has worked every position, from ramp agent to customer service. Sister Stansbury got involved with the IAM after the organizing drive of 1998 by becoming a shop steward. Terry began to rise through the ranks of the IAM, holding several positions, including committee person and local lodge president. Terry was brought on as a district educator and soon transitioned to becoming the Director of Education for District Lodge 141 in 2012. In 2014 Terry ran a successful campaign to become an AGC and has served in this position since. Sister Stansbury has an unparalleled knowledge of every aspect of Union action, including organizing, collective bargaining, and lodge administration. “With the LEADS program, we were asked that they were looking to empower more women,” said Terry, “which is awesome because we do have a lot of strong, voisterous, powerful women.”
The two sisters assigned as mentees to AGC Stansbury are Patricia (Tria), Aumua Devoux, and Ashanta Marzett. Both of whom are lead Customer Service Representatives for United Airlines.
Tria, based out of DFW, has been employed with United since November 2nd, 2006, and currently holds the position of shop steward and has held the position of committee person while stationed in Orange County. “She knows I’m interested in leadership not only as a woman but as a Samoan woman,” she said. “There are so many Samoan islanders that work in our industry, but we are not well represented,” she said, referring to the systemic challenges for women who are also persons of color. “Get active” is the principle that Tria stands firmly on. She hopes to see more women, specifically Samoan women, get involved and showcase their talents.
Ashanta, based at LAX, has been employed with United since April 27th, 1999, and currently holds the positions of committee person and financial secretary of local lodge 1932. In her tenure, she suffered a furlough to Ontario, California, where she first met Terry. When the recalls came through to go back to LAX, Ashanta had been bypassed and received the news while loading luggage in the pit. She immediately called Terry and sorted out the situation to return to her original station. “It’s a little intimidating, being a female in this industry,” said Ashanta when asked about what it’s like to work in a male-dominated industry. “You don’t see a lot of us, meaning women in leadership. So you don’t believe that it’s possible,” she continued.
Motherhood is another significant obstacle preventing many women from taking on leadership roles. Too often, the systems in place have forced women to choose between being a mother or career-building, something men don’t ever have to battle. This new emergence of forward-thinking women challenging the standards and adopting the mentality of being capable of having both are precisely what the LEADS program aims to empower and uplift.
“Let me be crystal clear; our IAM Sisters must be in leadership positions at every level of our union. Not just at the local lodge level, but at the district lodge and Grand Lodge levels as well.” IP Martinez said these words while addressing students at the William W Winpisinger Center when announcing the LEADS program. The truth of these words should resonate with all of us, regardless of gender.
Any great organization’s survival depends on its ability to adapt and change. The rising number of women in our industry shows that time is now. John C Maxwell said, “change is inevitable; growth is optional.” The Machinists of District 141 are ready and willing to lead this charge, empowering and supporting our sisters to step into leadership at all levels. Our survival is dependent upon it. We should all make it a practice to see the talent in the women that make up our membership, encourage them to bring their unique skills to the table, and hold space and a seat on their behalf.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
15 November 2022
An innovative mentorship program launched by the Machinists Union is attracting top female talent within the union.
In September, Marilyn Loden, the author and activist who coined the term “Glass Ceiling,” died at the age of 76 after a battle with cancer. Loden first used the phrase in a panel discussion at the 1978 Women’s Action Alliance Conference in New York City, and it quickly caught fire. For years, women had noticed an invisible barrier preventing them from reaching the highest rungs of power. The term perfectly describes the invisible barriers preventing women from attaining leadership roles. According to the Bureau of Labor Statistics, 47% of the overall American workforce is female, and a majority, 50.2%, of college-educated workers are women. Yet, only 27% of women hold positions of real authority within their organizations.
Historically, labor unions have been at the forefront of efforts to create a more gender-neutral work environment. The Machinists Union is conducting an innovative new strategy for identifying and recruiting top female talent, which might serve as a template for other organizations.
In 2021 the Machinists Union announced the creation of the Leadership Excellence Assembly of Dedicated Sisters (LEADS) program. The mission of the LEADS program is to prepare and empower IAM sisters to step into leadership roles, emphasizing the areas of Business Representatives, Directing Business Representatives, and President/Directing General Chairs.
“This has been a wonderful success so far,” said District President Mike Klemm, a prominent booster of the effort to bring more women into leadership positions. “We are just ending the halfway mark for the first generation of this important work, and I couldn’t be more proud of how much new female talent we’ve been able to find and elevate.”
The LEADS Program does this by having female union leadership select and mentor rising female talent from the frontlines – giving them access to valuable real-world leadership-building situations and learning opportunities.
President and Directing General Chairman (PDGC), Mike Klemm, took this initiative seriously, implemented the program within District Lodge 141, and placed one of our most vigorous sisters in a mentorship role. Assistant General Chair (AGC) Terry Stansbury was tapped for this program as a mentor and has taken on the assignment with vigor.
Assistant General Chair (AGC) Stansbury has a long career in the airline industry that began February 12th, 1989, at United Airlines in Ontario, California. Terry has worked every position, from ramp agent to customer service. Sister Stansbury got involved with the IAM after the organizing drive of 1998 by becoming a shop steward. Terry began to rise through the ranks of the IAM, holding several positions, including committee person and local lodge president. Terry was brought on as a district educator and soon transitioned to becoming the Director of Education for District Lodge 141 in 2012. In 2014 Terry ran a successful campaign to become an AGC and has served in this position since. Sister Stansbury has an unparalleled knowledge of every aspect of Union action, including organizing, collective bargaining, and lodge administration. “With the leads program, we were asked that they were looking to empower more women,” said Terry, “which is awesome because we do have a lot of strong, voisterous, powerful women.”
The two sisters assigned as mentees to AGC Stansbury are Patricia (Tria), Aumua Devoux, and Ashanta Marzett. Both of whom are lead Customer Service Representatives for United Airlines.
Tria, based out of DFW, has been employed with United since November 2nd, 2006, and currently holds the position of shop steward and has held the position of committee person while stationed in Orange County. “She knows I’m interested in leadership not only as a woman but as a Samoan woman,” she said. “There are so many Samoan islanders that work in our industry, but we are not well represented,” she said, referring to the systemic challenges for women who are also persons of color. “Get active” is the principle that Tria stands firmly on. She hopes to see more women, specifically Samoan women, get involved and showcase their talents.
Ashanta, based at LAX, has been employed with United since April 27th, 1999, and currently holds the positions of committee person and financial secretary of local lodge 1932. In her tenure, she suffered a furlough to Ontario, California, where she first met Terry. When the recalls came through to go back to LAX, Ashanta had been bypassed and received the news while loading luggage in the pit. She immediately called Terry and sorted out the situation to return to her original station. “It’s a little intimidating, being a female in this industry,” said Ashanta when asked about what it’s like to work in a male-dominated industry. “You don’t see a lot of us, meaning women in leadership. So you don’t believe that it’s possible,” she continued.
Motherhood is another significant obstacle preventing many women from taking on leadership roles. Too often, the systems in place have forced women to choose between being a mother or career-building, something men don’t ever have to battle. This new emergence of forward-thinking women challenging the standards and adopting the mentality of being capable of having both are precisely what the LEADS program aims to empower and uplift.
“Let me be crystal clear; our IAM Sisters must be in leadership positions at every level of our union. Not just at the local lodge level, but at the district lodge and Grand Lodge levels as well.” IP Martinez said these words while addressing students at the William W Winpisinger Center when announcing the LEADS program. The truth of these words should resonate with all of us, regardless of gender.
Any great organization’s survival depends on its ability to adapt and change. The rising number of women in our industry shows that time is now. John C Maxwell said, “change is inevitable; growth is optional.” The Machinists of District 141 are ready and willing to lead this charge, empowering and supporting our sisters to step into leadership at all levels. Our survival is dependent upon it. We should all make it a practice to see the talent in the women that make up our membership, encourage them to bring their unique skills to the table, and hold space and a seat on their behalf.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
Recording Secretaries – Please print and post on all IAMAW Bulletin Boards. GET PRINTABLE COPY >>
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
November 7, 2022
TO: TWU/IAM Association Members
RE: Holiday Arbitration
At the end of last week, we were informed by Arbitrator Dana Eischen that he needs to reschedule the Article 22 – Holiday Arbitration scheduled to start on December 1, 2022. At his request, we have rescheduled the hearing to begin on February 2 and, if necessary, Feb 3, 2023.
We understand the frustration this delay poses; however, the change in schedule is beyond our control.
Fraternally,
Recording Secretaries: Please print and post on all IAMAW bulletin boards.
JetBlue is a company that has been mismanaged for years. Now, that poor management has invited numerous court actions and unwanted ire from the Justice Department.
Organizing
7 November 2022
JetBlue is facing mounting scrutiny over its planned merger with Spirit. A group of airline workers and consumers are filing a court challenge to try and slow the “almost unstoppable” march towards airline megalopoly.
The action comes as JetBlue posts the worst 3rd Quarter profits of any major carrier, earning a dismal $.21 a share, prompting investor concerns that airline management may be underperforming at a critical moment for the carrier. It’s also happening at a time when the airline is facing mounting concerns from the Justice Department over it’s de-facto merger with American in the Northeast markets.CEO Robin Hayes is expected to appear in court to defend the airline’s actions in that case. The airline is also facing questions from unions, who are asking if the company is being irresponsible financially, overpaying investors with what is being called “hush money” in case the deal with Spirit falls through. Unions are also calling for the airline to raise wages and offer better work / life balance for employees.
Flight Crews and consumers filed an injunction asking a Federal Judge to stop the planned $3.8 Billion merger between JetBlue Airways and Spirit Airlines in hopes of preserving one of the few remaining discount carriers in the U.S.
The group filed to stop the deal on Thursday, asking the U.S. District Court for the Northern District of California to block the transaction. The group argues that the new, larger airline could dominate key markets, leaving consumers no choice but to pay ticket prices that are impossible for either airline to command today.
If the merger goes through, the complaint argues, consumers “would not only lose the competition of Spirit, but also the potential competition that JetBlue would provide by building its own national presence the old-fashioned way, by competing for passengers instead of buying them.”
JetBlue is the sixth-largest airline operating in the U.S. Spirit is the seventh. The combined airline would immediately become the fifth-largest air carrier, right behind American, Delta, Southwest, and United.
The complaint argues that Spirit is a significant price-cutting rival of JetBlue and other major carriers and that, if the airline were eliminated from the commercial aviation ecosystem, other airlines would be free to hike fares on consumers. Moreover, the “current trend toward concentration, the lessening of competition, and the tendency to create a monopoly in the airline industry are unmatched and unparalleled,” the suit read.
It goes on to suggest that monopolistic power was the primary goal of the merger. “JetBlue would gain a majority market share on more than a dozen routes where neither it nor Spirit previously dominated, and it would eliminate the price-cutting by Spirit. Therefore, JetBlue made an unsolicited tender offer to purchase Spirit in order to eliminate that competition,” according to the filing.
The complaint states that Spirit is unique in commercial aviation because it’s small enough to survive on smaller ticket prices but large enough to compete against mega-carriers such as United and Southwest.
“Spirit, with its innovative, low-cost service, is an important bulwark against this almost unstoppable trend toward complete concentration and monopoly in the airline industry,” the suit says.
The proposed merger wouldn’t just eliminate another discount option for travelers; it would also remove an essential reason for the four mega-carriers to avoid “abuses” directed toward the flying public. If the Big Four airlines are no longer afraid of losing passengers to Spirit, the result may be skies that are even less friendly than they already are. If the JetBlue / Spirit deal is ultimately allowed to go forward, discount airfares in the U.S. will shrink by 50% overnight.
Earlier in 2022, the Spirit Board and executives concluded that a merger between Spirit and JetBlue could never be approved by regulators and was, therefore, “illusory.” The Board then rejected an earlier offer by JetBlue. JetBlue offered to “sweeten the deal” by paying the shareholders $400 million if the proposed combination failed. Thus the shareholders could move forward with the JetBlue combination without any risks. The $400 million to shareholders was to quiet the shareholder’s knowledge of the potential illegality of the acquisitions and was little more than “hush money” according to the suit.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...
7 November 2022
JetBlue is facing mounting scrutiny over its planned merger with Spirit. A group of airline workers and consumers are filing a court challenge to try and slow the “almost unstoppable” march towards airline megalopoly.
The action comes as JetBlue posts the worst 3rd Quarter profits of any major carrier, earning a dismal $.21 a share, prompting investor concerns that airline management may be underperforming at a critical moment for the carrier. It’s also happening at a time when the airline is facing mounting concerns from the Justice Department over its de-facto merger with American in the Northeast markets.CEO Robin Hayes is expected to appear in court to defend the airline’s actions in that case. The airline is also facing questions from unions, who are asking if the company is being irresponsible financially, overpaying investors with what is being called “hush money” in case the deal with Spirit falls through. Unions are also calling for the airline to raise wages and offer better work/life balance for employees.
Flight Crews and consumers filed an injunction asking a Federal Judge to stop the planned $3.8 Billion merger between JetBlue Airways and Spirit Airlines in hopes of preserving one of the few remaining discount carriers in the U.S.
The group filed to stop the deal on Thursday, asking the U.S. District Court for the Northern District of California to block the transaction. The group argues that the new, larger airline could dominate key markets, leaving consumers no choice but to pay ticket prices that are impossible for either airline to command today.
If the merger goes through, the complaint argues, consumers “would not only lose the competition of Spirit, but also the potential competition that JetBlue would provide by building its own national presence the old-fashioned way, by competing for passengers instead of buying them.”
JetBlue is the sixth-largest airline operating in the U.S. Spirit is the seventh. The combined airline would immediately become the fifth-largest air carrier, right behind American, Delta, Southwest, and United.
The complaint argues that Spirit is a significant price-cutting rival of JetBlue and other major carriers and that, if the airline were eliminated from the commercial aviation ecosystem, other airlines would be free to hike fares on consumers. Moreover, the “current trend toward concentration, the lessening of competition, and the tendency to create a monopoly in the airline industry are unmatched and unparalleled,” the suit read.
It goes on to suggest that monopolistic power was the primary goal of the merger. “JetBlue would gain a majority market share on more than a dozen routes where neither it nor Spirit previously dominated, and it would eliminate the price-cutting by Spirit. Therefore, JetBlue made an unsolicited tender offer to purchase Spirit in order to eliminate that competition,” according to the filing.
The complaint states that Spirit is unique in commercial aviation because it’s small enough to survive on smaller ticket prices but large enough to compete against mega-carriers such as United and Southwest.
“Spirit, with its innovative, low-cost service, is an important bulwark against this almost unstoppable trend toward complete concentration and monopoly in the airline industry,” the suit says.
The proposed merger wouldn’t just eliminate another discount option for travelers; it would also remove an essential reason for the four mega-carriers to avoid “abuses” directed toward the flying public. If the Big Four airlines are no longer afraid of losing passengers to Spirit, the result may be skies that are even less friendly than they already are. If the JetBlue / Spirit deal is ultimately allowed to go forward, discount airfares in the U.S. will shrink by 50% overnight.
The proposed merger wouldn’t just eliminate another discount option for travelers; it would also remove an essential reason for the four mega-carriers to avoid “abuses” directed toward the flying public. If the Big Four airlines are no longer afraid of losing passengers to Spirit, the result may be skies that are even less friendly than they already are. If the JetBlue / Spirit deal is ultimately allowed to go forward, discount airfares in the U.S. will shrink by 50% overnight.
Earlier in 2022, the Spirit Board and executives concluded that a merger between Spirit and JetBlue could never be approved by regulators and was, therefore, “illusory.” The Board then rejected an earlier offer by JetBlue. JetBlue offered to “sweeten the deal” by paying the shareholders $400 million if the proposed combination failed. Thus the shareholders could move forward with the JetBlue combination without any risks. The $400 million to shareholders was to quiet the shareholder’s knowledge of the potential illegality of the acquisitions and was little more than “hush money” according to the suit.
The United Auto Workers are currently engaged in a historic, nationwide strike action in pursuit of fair wages and ending the chronic exploitation of American manufacturing workers. Among the workplace improvements the union is seeking may seem far-fetched: a...
The Future of the IAM is in the hands of its members. That was the message from Machinists Union leadership's first in-person listening session to the union's front-line membership. The meeting, held on May 2 at Local 1297 in Ashland, Ohio, marked the first of many...
Tim Gurner, the millionaire CEO of the real estate company Gurner Group, said at a property summit on Tuesday that unemployment needs to increase dramatically in order to remind workers they are not in charge. Millionaire Real Estate CEO thinks that workers need to be...