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.
Transportation Workers Gather for the 2023 North American Transportation Conference
Las Vegas, NV - On April 2, transportation workers and industry leaders convened in Las Vegas for the 2023 North American Transportation Conference to address the ongoing challenges workers face in the sector. The Conference brought together notable speakers,...
Secretary Buttigieg Addresses Air Rage at the 2023 North American Transportation Conference
In response to a question about the recent attacks on airline workers by disgruntled passengers, Secretary of Transportation Pete Buttigieg outlined the Department of Transportation's (DOT) efforts to combat air rage during the 2023 North American Transportation...
Illinois State Council of Machinists Holds Annual Conference
Illinois State Council of Machinists Holds Annual ConferenceIAM141.org March 25, 2023The Illinois State Council of Machinists and Aerospace Workers recently held its annual conference in Springfield, Illinois, from March 21-23. The conference began with a reception...
United Airlines Contract Negotiations
United Contract Negotiations UpdateIAM and United management negotiators met this past Friday in Washington DC for 14 hours in an effort to reach agreement on seven IAM contracts covering almost 30,000 United Airlines workers. While United management has finally...
Related News
Here’s the Difference Between Heat Stress, Exhaustion, and Stroke
Heat-related injuries and sickness can often be hard to understand because the words used to describe them can be tricky. With hot weather warnings in the U.S., it's crucial to understand terms like heat stress, heat exhaustion, and heat stroke.Here's the Difference...
Hurry, There’s Still Time! Thousands of Dollars in Scholarship Money is Available!
Calling all members of Machinists Union District 141! If you've ever considered continuing your education or know someone who is, now is the time to take advantage of the unique opportunity before you - the 2023 Adolph Stutz Memorial Scholarship Essay Competition....
United CEO Scott Kirby Takes a Private Jet Amid Thousands of Flight Cancellations
Scott Kirby, the CEO of United Airlines, issued an apology on Friday for his decision to board a private aircraft amidst the flight cancellation chaos that left thousands of United's passengers stranded around the nation earlier this week.United CEO Scott Kirby Takes...