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?
![JetBlue fi-2](https://iam141.org/wp-content/uploads/2022/08/JetBlue-fi-2.jpg)
“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.
July Helping Hands: Cultural Awareness
EAP Peer Volunteers: For July we address Cultural Awareness. Culture is defined, and why being culturally aware is important and how to develop cultural awareness are covered. All of us can benefit by increasing our knowledge of other cultures, their practices, and...
IAM Awards Scholarships at Aviation High School Graduation
IAM Awards Scholarships at Aviation High School GraduationService to the Community11 July 2022Aviation High School recently held its annual graduation ceremony, the first in-person event since the pandemic. 480 students received their high school diploma, with many...
Lodge 811’s Ongoing Commitment to Community: Toy Drive for Pediatric Cancer Patients
Home Town Pride: Lodge 811 Continues A Long-Standing Commitment to Community Service with Annual Toy Drive for Pediatric Cancer PatientsCommitment To the Community: Local 811 Toy Drive for Pediatric Cancer PatientsService to the Community11 July 2022Local Lodge 811’s...
JetBlue Union Organizing Effort Heats Up
Tristan "Lion" Dutchin (center, light brown shirt) was instrumental in the historic campaign to bring union rights to the Amazon Staten Island Facility, the first such victory in the history of the trillion-dollar company.. He is lending his insights and support to...
Related News
New Job Growth “Strong as Hell” After Investments, Says Secretary Of Transportation
New Job Growth "Strong as Hell" After Investments, Says Secretary Of TransportationLegislation19 October 2022In an appearance on CBS News' face the Nation over the weekend, Transportation Secretary Pete Buttigieg touted the Administration's economic and pro-union...
Dennis Spencer Named New Safety Director for American, Spirit
Dennis Spencer Named Safety Director for American, Spirit MembersSafety18 October 2022Dennis Spencer, Safety Chairman from Local Lodge 1776, has been appointed to Safety Director for District 141, overseeing safety programs for Union Members at American Airlines and...
Labor-Friendly Legislation the Topic at Chicago Local 1487
The Machinists Non-Partisan Political League fights for Pro-Union legislation within the airline industry. To find out how you can help with this critical work, please CLICK HERE >> Labor-Friendly Legislation the Topic at Chicago Local 1487MNPL12 October 2022On...