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

“Voisterous” Female Leadership Program Looks Ahead

“Voisterous” Female Leadership Program Looks Ahead

LEADS Program Particpants pose for a Holiday photo with District 141 President, Mike Klemm (seated, on right) and Secretary-Treasurer, Alex Gerulis. "Voisterous" Female Leadership Program Looks AheadMachinists District 14115 November 2022In September, Marilyn Loden,...

Association Update: Holiday Arbitration

Association Update: Holiday Arbitration

Recording Secretaries - Please print and post on all IAMAW Bulletin Boards. GET PRINTABLE COPY >>Related NewsAssociation Update: Holiday Arbitration November 7, 2022  TO: TWU/IAM Association Members  RE: Holiday Arbitration  At the end of last week, we were...

JetBlue Hits More Turbulence

JetBlue Hits More Turbulence

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. JetBlue Merger Hits More TurbulanceOrganizing7 November 2022JetBlue is facing mounting scrutiny over its...

Share This