The JetBlue-Spirit Merger and the Risk to Job Security
Organizing
9 August 2022
The JetBlue and Spirit merger presents a significant risk to the job security of those workers who do not have contractual employment protections. Why?
“Asset divestitures can smooth the way to antitrust approval.We have a path to close this deal,”
-CEO Robin Hayes
The JetBlue-Spirit merger will have to receive approval from the federal government to be finalized. With airfares soaring and countless operational problems, it is expected that the Biden Administration will be VERY apprehensive to approve any airline merger. This is especially true for the JetBlue-Spirit merger, as the Biden Administration has already sued JetBlue and American, alleging the airlines’ Northeast Alliance is a de facto merger that hurts competition in the New York and Boston markets. So what will JetBlue have to do to gain regulatory approval for its merger with Spirit?
Two words: Divest operations to address the issue of competition. So, for example, where JetBlue and Spirit both have significant operations—think FLL, MCO and other locations—to gain approval for the merger JetBlue will have to give up a portion of its flight schedule to other airline/s. That means JetBlue is bound to divest in many locations, which means a reduction of the current combined flights of Spirit and JetBlue. And that affects jobs.
And, if the merger is ultimately approved, a big if, it will not happen until the first half of 2024. A lot can happen in 15-18 months. There can be an economic slowdown, happening now as the GDP has decreased in the last two quarters, or a significant change in the leadership philosophy of the combined carrier.
JetBlue management’s objective, as stated in its latest second-quarter earnings report, is to get the merger with Spirit approved and to implement a severe cost containment strategy with its newly announced “Enterprise Planning Team.”
What does that mean for outsourcing and general job security? Future wage and benefit improvements? Work rule enhancements?
The only way that JetBlue GO Crewmembers will be able to have a say in their future is by having a seat at the table. Not by being on the menu.
Passenger Rage is So Bad the TSA is Offering Free Self Defense Classes
[supsystic-social-sharing id='3']Amid a wave of violent attacks from passengers, the Transportation Security Administration (TSA) is restarting self-defense classes designed specifically for flight crews and gate agents. The classes, which the TSA paused due to the...
Our View: Airlines Slowly Returning to Profitability Thanks to PSP
[supsystic-social-sharing id='3']Airlines are rebounding. This is due to many factors, not least of which is the taxpayer-funded Payroll Support Program. This legislation covered the wages for airline workers so carriers could keep them on standby for a quick recovery...
Hawaiian Airlines Negotiations Update
Aloha Sisters and Brothers of Hawaiian Airlines, Last month, we informed you that we were planning a high-level executive meeting between the IAMAW and Hawaiian Airlines the week of July 19, 2021, to discuss the outstanding issues that required more work. These issues...
Union Jobs Are Available
[supsystic-social-sharing id='3']According to recent studies, a majority of the 157 million active American workers would like to have a union job. According to a survey by the Pew Research Center, majorities view employee-run associations and unions favorably and see...
Related News
A Girl, a Scholarship, and a Dream
The IAMAW Scholarship Competition is open each year to members of the IAM and their children throughout the United States and Canada under procedures and rules of eligibility explained in this Announcement. The IAM Scholarship Fund, which is used exclusively to make...
2022: A Year of Service to the Community
I hope you are all doing well and that 2022 brings you blessings. Staying safe and healthy is first and foremost. The uptick of the new Covid variant has made some of the work you all do more challenging, and know that remaining healthy and safe is a priority. We had...
141 Report: Union Strong Sister in Hawaii
IAM District Lodge 141 Report with Host Dave Lehive is a weekly podcast featuring Machinist Union Members and Allies of the Labor Movement. Our Video report airs every Friday at 2:00 PM EST (1:00 CST) on Facebook and Youtube and is also on Spotify. This week's 141...





