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.
Join Thursday’s National Day of Action to Pass the PRO Act
[supsystic-social-sharing id='3']On Thursday, April 8, members of the Machinists Union, labor leaders, and workers are encouraged to participate in a national day of action to urge U.S. senators to pass the Protecting the Right to Organize (PRO) Act. The PRO Act has...
IAM Local 2741 Members Ratify Contract at Alstom Transportation
[supsystic-social-sharing id='3']340 IAM Local 2741 members last week overwhelmingly voted to ratify a five-year agreement with Alstom Transportation at their Hornell, NY plant The contract provides wage increases for both entry level and long-term employees, protects...
Arno Hohn Named District 141 Trustee
Since he was appointed Alternate Shop Steward for Ramp Services at LAX in 1993, Brother Arno Hohn has continuously served IAM members in several capacities. Arno Hohn grew up in South Carolina and earned a Bachelor’s degree in History from the University of South...
Winpisinger Center Enrolling for Online Leadership Classes
[supsystic-social-sharing id='3']The Machinists Union isn’t letting a global pandemic keep from educating members and future leaders. The William W. Winpisinger Education and Technology Center is offering an online adaptation of their Leadership I program June 14-25...
Related News
Hawaiian Airlines Negotiation Update
Your Joint District 141 and 142 negotiation committee met with the company on August 30 – September 1 in San Francisco. Although some progress was made and we were able to resolve some issues on both sides of the table, no agreement was reached during this session on...
UGE Changes Course
3 September, 2021 UGE Changes Course Less than a week after announcing they would not mandate employee vaccinations, United Ground Express (UGE) has changed its mind and demanded that all UGE workers would need to be vaccinated to maintain employment. UGE workers who...
The EU Calls For COVID-19 Travel Restrictions on Americans
[supsystic-social-sharing id='3']This week, the European Union recommended that all 27 member nations prevent unvaccinated Americans from into Europe. The move is the latest round of Pandemic-related travel restrictions threatening the airline industry. The new...





