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.
Congressman: Furloughs Before October “Bad-Faith” Violation of the CARES Act
The Congressman representing communities surrounding Newark Liberty Airport (EWR) in New Jersey, Representative Albio Sires, issued a statement calling airline furloughs after the CARES Act a “Bad-Faith” action by executives. In a letter addressed to outgoing United...
Machinists Union Withdraws United Lawsuit After Airline Drops Illegal Furlough Plan
The Machinists Union today withdrew its lawsuit against United Airlines after the carrier backed down from its plans to cut the pay rates of its entire full-time Fleet Service and Customer Service workgroups by reducing their hours worked. The IAM maintains the right...
Hawaiian Airlines Negotiations Update
May 8, 2020 Dear Sisters and Brothers, We hope this communication finds you safe and healthy. As you are aware, we entered into Limited Issue/Expedited Negotiations with Hawaiian Airlines in the month of February. The majority of the Negotiating sessions were spent...
Joint Letter from Bob Martinez and Richard Trumka to Donald Trump
May 5, 2020 President Donald J. Trump The White House 1600 Pennsylvania Ave., NW Washington, DC 20500 Dear Mr. President: We hope you share our outrage that United Airlines, a few short days after accepting $5 billion of taxpayer dollars which it committed to use to...
Related News
141 Report: Union Educators Adapt to Virtual Formats to Support Members
To find out about scheduling training at your location, Contact Mike “Mac” McGovern, Director of Education. Your Local Lodge can set everything up with Mac and your AGC or Committee Person. Any questions, please contact Mac at: 570-350-0497 or mac@iam141.org...
Roberto Mendez, Longtime Machinists & Aerospace Union Activist, Retires After a 36 Year Career
Roberto Mendez is retiring after a 36 year career at United Airlines. His work as a union activist has helped deliver thousands of meals, toys and vital assistance to thousands of grateful recipients within his community. Over the years, Roberto has served as a Union...
It’s Time to Enroll in the IAM Group Medicare Plan
[supsystic-social-sharing id='3']The IAM has worked for months to negotiate a new Group Medicare plan for Medicare-eligible retirees, spouses, surviving spouses, and Medicare-eligible dependents. The IAM Group Medicare plan allows individuals to enroll throughout the...





