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.
Chicago Guide Dog Golf Outing Raises Funds, Spirits
Meet Sheldon! Sheldon is a "Puppy in Training" for a bright future in the field of Guide Dogging. Sheldon is just one of the service canines that Guide Dogs of America raises and trains each year. Dogs like Sheldon transform the lives of children with autism, veterans...
Machinists Union Joins Delegation to Pope Francis on Behalf of Working People
Machinists Union Joins Delegation to Pope Francis on Behalf of Working PeopleGOIAM.org17 August 2022IAM Air Transport General Vice President Richard Johnsen recently joined other transportation unions at a meeting in Vatican City hosted by the International Transport...
Machinists Unions Applauds Passage of Inflation Reduction Act
Machinists Unions Applauds Passage of Inflation Reduction ActLegislative16 August 2022The Inflation Reduction Act will lower costs for families, combat the climate crisis, reduce the deficit, and finally ask the largest corporations to pay their fair share. This...
August Helping Hands: Wellness
IAM EAP Peer Volunteers: I hope everyone is surviving the crippling heat of the past few weeks! The weather does drive a lot of behavior! Hot weather usually leads to more conflict between people - including while at work. Thank you for being there to help your...
Related News
4 Things Most People Don’t Know About MLK
4 Things Most People Don't Know About MLKIAM141.org January 16, 2023Today is the day Americans celebrate the life and legacy of Rev. Dr. Martin Luther King, Jr. There are many aspects of his life that everyone knows, such as his prominent role in the Civil Rights...
Make JetBlue a Better Place to Work With a YES VOTE!
Make JetBlue a better place to work with a YES VOTE! Justice at JetBlue January 10, 2023We are all proud to work for JetBlue, and we work extremely hard to make JetBlue a successful airline, even though we have been placed in difficult circumstances over the last few...
Flight Attendants Endorse JetBlue GO Unionization
Flight Attendants Stand with JetBlue Ground OperationsJustice at JetBlue January 9, 2023Dear GO crewmembers: Flight Attendants across the industry count you as family. We are inspired that you are voting to join the International Association of Machinists and...