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.
Historic Union Alliance at Delta
Delta is now facing three of the largest unions in North American at the same time. Get ready for pizza parties. Historic Union Alliance Forms at DeltaGOIAM.org28 November 2022North America's three largest airline unions have formed a historic alliance to unify tens...
IAM Mourns Loss of Retired Winpisinger Center Director Chris Wagoner
Winpisinger Center Director and Educator, Chris Wagoner. IAM Mourns Loss of Retired Winpisinger Center Director Chris WagonerMachinists District 14115 November 2022The IAM is mourning the passing of Chris Wagoner, who recently retired as Director of the IAM’s William...
Union vs Non-Union Thanksgiving Pay
Working on Thanksgiving? How JetBlue GO Crewmembers Holiday Pay Compares to Other Unionized GO Workers Justice at JetBlue22 November 2022The airline industry, as we know, is a 24/7 operation, and working on a holiday is part of the job. However, how we are COMPENSATED...
November Helping Hands: Well-Being
EAP Peer Coordinators: This month we cover well-being. Many companies are stepping up and realizing that retaining high-caliber employees means offering benefits that are attractive and help retain people. The focus is on the different aspects of well-being -...
Related News
The Battle for a First Contract: How Employers Use Unfair Labor Practices
Recent victories in organizing workers at companies such as Amazon, Starbucks, and Trader Joe's indicate that it is possible for workers in industries previously thought to be impossible to unify.The Battle for a First Contract: How Employers Use Unfair Labor...
Disruptive Passenger Causes United Flight to Return to Newark
A United flight bound for Israel was forced to turn around and return to Newark airport early Sunday morning due to a disruptive passenger. The flight, which had already been delayed by two hours, had only been in the air for three hours before the incident...
New Bill Promises Living Wages and Benefits for Airport Workers
Washington D.C.: A new proposed law called the "Good Jobs for Good Airports Act" aims to ensure airport service workers in the United States receive a living wage and important benefits like health care. The law would help create fair working conditions for airport...