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.
Belinda Hawkins New District 141 Employee Assistance Program Regional Coordinator
The District 141 EAP can quickly and confidentially connect you to counseling, crisis intervention, and other wellbeing services. Belinda Hawkins has been named the new District 141 Employee Assistance Program Regional Coordinator for the South Central region. She is...
Local 914 Spreads Sweet Spring Cheer in Newark
For the past three years, Local 914 has sponsored 15 children at the Vashti School for Future Leaders, a free after-school program founded by Nicole Washington in 2007. Ms. Nicole, as she is known to the program participants, works as the Youth Development Director at...
Tony Licciardi Joins District 141 Board as Trustee
In a unanimous vote, the IAMAW District 141 Executive Board appointed Local Lodge 1487 President Tony Licciardi to the position of District 141 Trustee. Mensaje en español>> IAMAW District 141 President Mike Klemm announced the appointment of Tony...
Machinists Union Congratulates Marty Walsh on Labor Secretary Confirmation, Looks Forward to Worker-Friendly Labor Department
[supsystic-social-sharing id='3']Robert Martinez Jr., International President of the 600,000-member International Association of Machinists and Aerospace Workers (IAM), released the following statement on the confirmation of Marty Walsh as U.S. Labor Secretary: “I...
Related News
How the Machinists Union is Critical to the Afghanistan Evacuation Efforts
[supsystic-social-sharing id='3']The IAM is proud to be the largest aerospace, airline, and defense labor union in North America. The recent evacuation efforts of thousands of U.S. citizens and allies in Afghanistan have been made possible by IAM members throughout...
141 Report: Summer Fun, Fundraising, and Politics
Dave Lehive was at the Local 1487 Golf Outing last week, where the sold-out event attracted 144 golfers on a beautiful summer day. This was the Chicago local’s biggest fundraising event of the year to benefit Guide Dogs of America and Tender Loving Canines. Dave...
What is United Doing?
What is United Doing? August 25, 2021 As you are likely aware, United Airlines' top management has mandated that all United Airlines employees must have received their second shot of the Pfizer or Moderna vaccines, or the only shot of the Johnson and Johnson vaccine,...