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.
Black History Month Spotlight: Derrick Monk
Honoring Black History Month: Brother Derrick Monk has provided a calm, guiding presence for members of IAMAW District 141 for over a decade. We continue to celebrate Black History Month with a profile of Pastor Derrick S. Monk, Sr., Grievance Committee Chair, and...
Machinists Union Successful in Clearing First Hurdle Toward Aerospace Worker Relief
[supsystic-social-sharing id='3']In a big step toward relief for the tens of thousands of Machinists Union members working in the aerospace industry, a payroll support fund to protect aviation manufacturing jobs has been included in the House’s omnibus reconciliation...
Home, Work, Union, Love
[supsystic-social-sharing id='3']Like everything else during this past year, Valentine’s Day 2021 will look a little different. At a time when we are spending a lot more time at home, we asked a few couples in the IAM who are happy after years of balancing their work...
141 Video Report: How the Current Political Landscape Impacts Airline Workers
David Roderick is the Legislative Director for IAMAW District 141. Over the years, he has helped promote the unique interests of airline workers in Washington, DC. The important work done by the IAMAW District 141 Legislative Department includes furlough protections,...
Related News
141 Report: “A Proper Send-Off” in SFO Celebrates Retirements and Solidarity
What began as a plan to have a small retirement party for 49 Storekeepers who chose United’s voluntary separation programs turned into a day-long celebration for all Machinists Union members in SFO. Over 1,000 union members from Local Lodges 1781 and 1782 in...
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...