Employees Petition for CEO’s Removal After United Says it May Outsource 2,000 Jobs
Jeff Edwards January 14, 2015
News that United Airlines is looking at ways to replace employees with subcontractors at 28 airports has spurred a petition for the airline’s board to replace CEO Jeff Smisek.
United Airlines has informed the International Association of Machinists and Aerospace Workers (IAM) that the company is researching ways to outsource 2,000 jobs.
Reuters reported on Monday that the airline is looking at the possibility of replacing employees with independent contractors at 28 airports. According to the report, union contracts require that replaced workers be offered jobs at other airports. United is said to be investigating ways to use displaced employees, including gate agents, baggage handlers and customer service agents, at hub airports which will not be affected by the scheme. IAM representatives confirmed that the airline has already asked contractors to submit bids to takeover ground operations at several of the affected airports.
The latest effort by the airline to replace employees with contractors comes on the heels of a July 2014 decision to outsource more than 630 airport jobs.
“We need to ensure that our costs are competitive,” United spokesman Luke Punzenberger told Reuters.
News of the airline’s most recent attempt to outsource jobs has prompted a Change.org petition calling for the immediate resignation of United CEO Jeff Smisek. The online petition is sponsored by “the dedicated active employees and retirees of United Airlines, alongside the frequent fliers.”
The petition accuses Smisek of misleading Congress when he was lobbying for approval of United’s merger with Continental Airlines, specifically pointing out and linking to Smisek’s July 2013 testimony before Congress. A portion of the petition reads:
He testified before Congress and assured the Transportation Committee regarding the safety of jobs for everyone but at the executive level. However, since that testimony, he has systematically outsourced thousands of middle class jobs of these dedicated employees, furloughing THOUSANDS! And is about to outsource thousands more.
The petition goes on to fault Smisek for the carrier’s mistreatment of its frequent flyers, stating: “He and his management has (sic) alienated thousands of our most loyal customers, our frequent fliers, including our Global Service, 100,000 mile members and Premier Executives.”
If the number of supporters reaches 5,000, the petition will be sent to the Board of Directors of United Continental Holdings. As of Wednesday afternoon, the petition had more than 2,500 supporters.
[Photo: United Airlines]
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@KoKoBuddy Have you ever dealt with one of those United contractors? I've worked extensively with contractors from those low cost outsourcing / staffing companies. They know nothing and can't do anything. There is a high turn over because anyone with a brain is going to head to a better paid job after gaining some experience. As a result, you'll end up with a group of new hires that are inexperienced or the brainless ones that have no where to go. Contractor companies also often discourage their staff from going above and beyond their responsibility because it opens them up to risks ticking of the client when they cross the boundaries set by the client. Metrics usually only track performance in regard to their responsibilities so they don't won't get any brownie points for over-performing.
Is this the second coming of a Frank Lorenzo? By the way, whenever I encounter a contracted agent at Dulles they never are able to provide answers and always need to find an United employee.
Great. Can't wait to enjoy this enhanced downgrade in customer service.
Yeah, you can outsource to contractors who pay close to min wage and save a lot of money... and at the same time watch your customer service go down the crappy since your 'employees' don't give a crap since they can always go get a job flipping burgers for the same pay.
This is the trend in all industry. Independent contractors are much more efficient than bloated union workers.