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.
American Rescue Plan to Deliver Lifeline to Machinists Union Members in Critical Industries
[supsystic-social-sharing id='3']In an historic win for working American families, the House of Representatives passed the Senate version of the American Rescue plan yesterday and President Biden signed it into law today. Machinists members from around the country...
Majority Leader Schumer, IAM Led the Fight for Pension Plan Relief
[supsystic-social-sharing id='3']The Machinists Union along with Majority Leader Chuck Schumer led the way in fighting to save troubled multiemployer pension plans while fully protecting the earned and vested benefits of current and future retirees. While the majority...
141 Report: Local 1487, Honoring the Past, Embracing the Future
Over the past 23 years, Tony Licciardi has served as Conductor Sentinel, Trustee, and Vice President before being elected President of the local lodge. Brother Tony is also the newest member of the District 141 Executive Board after he was recently appointed to a...
Congress Passes COVID Relief Bill; Air, Rail, Transit Sectors Receive Much Needed Aid
[supsystic-social-sharing id='3']Congress today approved a $1.9 trillion COVID-19 relief bill, which provides much-needed aid for the airline, passenger railroad and the transit sectors. The “American Rescue Plan Act of 2021”, is President Biden's desk. President...
Related News
141 Report: Sean Rosario, Educator at United Lodge 914
Brother Sean Rosario is a 14-year veteran of Continental/United, and as a Lead Ramp Services Agent, has served as a Safety Advocate at EWR for 10 years. Dave Lehive stopped by a Shop Steward training class at Local 914 recently, and impressed by what he saw, he...
Canada Will Require All Airline Employees and Passengers to be Vaccinated
[supsystic-social-sharing id='3']All Canadian forms of mass travel will soon require proof of vaccination for both passengers and employees. The new rules will include commercial air travel, trains, busses, and all federal workers. The International Association of...
Support Services Available for Veterans
[supsystic-social-sharing id='3']Veterans from all generations are processing the news of what is currently unfolding in Afghanistan and could be experiencing a wide range of emotions and feelings right now. The IAM Veteran Services Program is proud to share resources...





