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.
Tell Congress to Pass the Protecting the Right to Organize (PRO) Act
[supsystic-social-sharing id='3']The IAM is urging Congress to enact the Protecting the Right to Organize (PRO) Act, a critically important piece of legislation that will grant workers the right to freely form a union without the threat of company intimidation or...
141 Report: A Strong IAM Presence in the Friendliest City
"Hold them to the contract," Paul Platt has been serving Amalgamated Air Transport Lodge 2765 since 2014. The 141 Report enjoys a virtual visit in sunny San Diego, California, recognized as one of America’s friendliest cities, to speak with Local 2765 President Paul...
Machinists Union Again Leading Fight for Airline Worker Payroll Support Extension to Avoid Layoffs
[supsystic-social-sharing id='3']The IAM continues to lead the fight on Capitol Hill for an extension of the airline Payroll Support Program (PSP) to keep tens of thousands of IAM members employed. On Sunday, the IAM received notice that there was absolutely no...
Laura Stone, Organizer, Negotiator, and Trailblazer Retires
(Photo from 2019) “Laura’s exceptional skills as a contract negotiator, committee person, and AGC served the members of District 141 very well. She understands the unique needs of our sisters and brothers in the call centers, and oversaw the successful union of two...
Related News
141 Report: The IAM Members Who Train Flight Crews
Did you know that IAM members train United pilots and flight attendants? This highly skilled and specialized group of 150 IAM members design programs and provide training in aircraft systems and emergency procedures for United’s flight crews. Did you know that IAM...
Tell Your Senator to Pass the PRO Act
[supsystic-social-sharing id='3']Most American workers want to join a union but can't. The PRO Act will help fix that. Nearly 60 percent of American workers would join a union if they had the opportunity to do so. American workers almost universally support pensions...
Primer on Inside Organizing Committees
[supsystic-social-sharing id='3']Inside Organizing Committees, often referred to as "Inside Committees" are a key part of organizing a workplace. Here's a little more information about how they work. Got Union questions? Call or text a Union Representative at (954)...