Machinists Union Demands Answers to JetBlue’s Potential Misuse of Taxpayer-Funded Airline Aid

Justice at JetBlue
13 April 2022

The IAM is seeking answers to JetBlue’s possible misuse of funds from the Payroll Support Program (PSP), a component of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).

In 2020, as a response to the destruction of demand for air travel caused by the COVID-19 pandemic, Congress passed the CARES Act. The legislation, which included the PSP, provided approximately $50 billion in aid for U.S. airlines and mandated that the carriers not engage in involuntary layoffs, cut the salaries or reduce the benefits of airline workers.

JetBlue Airways received approximately $2 billion in aid, with most of it coming in the form of taxpayer-funded grants that do not have to be repaid. However, as they took the government funds, JetBlue management cut the working hours of its employees, which consequently cut their pay and benefits.

“We believe what JetBlue did was wrong,” said Richard Johnsen, IAM Chief of Staff to the International President. “JetBlue cut the salaries of thousands of ground workers by at least 20 percent. These are frontline, essential workers who risked their lives coming to work during the height of the pandemic when no vaccine was available. They’re heroes in my book and deserve to be repaid with interest by JetBlue executives.”

The IAM’s Transportation and Legislative Departments are in communication with government officials to get specific answers to specific questions.

“JetBlue just came up with $3.6 billion to buy Spirit Airlines last week,” continued Johnsen. “Some of that money needs to be put back in the pockets of JetBlue workers and not used to shower money on greedy airline executives and shareholders.”

The IAM is the largest airline union in North America and represents over 600,000 members.

 

Related News

Video Report: Will Riley, Adoph Stutz Memorial Scholarship Winner

Video Report: Will Riley, Adoph Stutz Memorial Scholarship Winner

A Conversation With Will Riley, Scholarship Winner A student at the University of Houston, he is the winner of $2,000 from the Adolph Stutz Memorial Scholarship Hello Machinists & Aerospace Union Members!I'm 22 years old and from Houston, Texas. I've lived in...

IAMAW Supports Legislation to Protect Aerospace Jobs

IAMAW Supports Legislation to Protect Aerospace Jobs

This week Reps. Rick Larsen (WA-02) and Ron Estes (KS-04) introduced The Aviation Manufacturing Jobs Protection Act of 2020. The bipartisan legislation helps prevent aerospace supply chain furloughs due to the COVID-19 pandemic by establishing a temporary relief...

Three Quick Facts About Kamala Harris, Biden’s VP Pick

Three Quick Facts About Kamala Harris, Biden’s VP Pick

Ending weeks of speculation, Democratic presidential candidate Joe Biden announced on Tuesday he has selected Senator Kamala Harris as his running mate. If elected, Harris will become the first woman to hold the office of Vice President of the United States. She would...

Share This