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Frustrations with the Newly Outsourced Hawaiian Call Center [Merged Threads]

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Frustrations with the Newly Outsourced Hawaiian Call Center [Merged Threads]

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Old Aug 30, 2006, 3:52 am
  #1  
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Hawaiian Air to Outsource Part of its Call Center to India/Phillipines

It was recently reported on the news a few weeks back that Hawaiian Airlines was mulling the idea of outsourcing their call center. I personally didn't see the segment, but my SO did and she explained that this was in the "talks" to cut costs associated with the on-set of go!'s entrance into the market.

Anyone have more info on it? Or where HA stands on the outsourcing?

All I could find through a Google search was the following:
http://www.blogsource.org/2006/08/hawaiian_airlin.html

FWIW, I don't know if HA would choose the India path in outsourcing, but I have frequently said on FT that I absolutely hate calls that get routed to India. This is not to be discriminatory in any sense, but any call that should take 2 minutes, which ends up taking 15 is ridiculous. Of course, that's just my personal opinion...

Edit: Looks like the fears of HA customers are coming true...

Last edited by slippahs; Dec 15, 2006 at 7:10 pm
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Old Aug 30, 2006, 4:21 am
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Oh please say it isn't so. One of the delights of HA versus UA is calling either the regular or Gold line and getting someone who is local.
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Old Aug 30, 2006, 1:34 pm
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I could have sworn that Hawaiian Airlines came out with an official press statement about a month or so ago addressing their stand on outsourcing. I believe spokesman Keoni Wagner said the airline had elected to not outsource and instead support the local jobs.

Unfortunately, I am not able to recall the article I was reading. If I do find it, I will post a link here.

Aloha.
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Old Aug 30, 2006, 2:48 pm
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Originally Posted by hal717200
I could have sworn that Hawaiian Airlines came out with an official press statement about a month or so ago addressing their stand on outsourcing. I believe spokesman Keoni Wagner said the airline had elected to not outsource and instead support the local jobs.
I think the whole issue on outsourcing was brought up in the recent talks with the IAM (?) and during the 2Q Conference Call. From what I remember (may be sketchy), Hawaiian very much supports keeping these jobs local, however they did state that outsourcing is still a viable alternative to be considered, and shouldn't be completely dismissed.

IMHO, should they end up outsourcing the call center to the mainland/abroad (hopefully not), I feel it may have a large detrimental effect on their business. IIRC, didn't Bank of Hawai'i try that a while back, only to bring it back to the islands because of the amount of disgruntled customers/lost business?
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Old Aug 30, 2006, 3:11 pm
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Originally Posted by asu-ua772
I think the whole issue on outsourcing was brought up in the recent talks with the IAM (?)
Was this the article? www.kpua.net/news.php?id=8962
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Old Aug 30, 2006, 3:37 pm
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If they're having trouble paying people the kind of money it takes to pay the rent in Honolulu, they could just outsource it over to ITO, where the pay scale is lower.
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Old Dec 15, 2006, 7:08 pm
  #7  
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HA To Outsource Some Parts of Call Center to Philippines and India

Hawaiian Airlines, which in July reached an outsourcing agreement with its biggest union, said it may move some of its reservations call center, accounting and information technology positions to the Philippines and India.

The company has yet to sign contracts or decide how many positions will be affected, but has toured facilities of several overseas outsourcing companies and is in talks about potential work, airline spokesman Keoni Wagner said. The airline employes 249 people in its reservations, accounting and information technology departments.
http://the.honoluluadvertiser.com/ar...193824706.html

And thus it begins...
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Old Dec 15, 2006, 7:53 pm
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They have been considering this since the beginning of the year.. I believe it was in some of the filings earlier this year, so its interesting to see if HERO and others blame this one on go!, just as some Island Air folks blame go! for their layoffs and fleet returns (although when go! entered the market, WP only had 4 flights to OGG from HNL and a few on HNL-LIH... so that's not a lot of overlap).

Last edited by UAPremierExec; Dec 16, 2006 at 9:34 am
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Old Dec 15, 2006, 9:27 pm
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The impact of this potential outsourcing move, whether it occurs or not, is unknown at this moment. It will all depend on how much of the 250 affected jobs are moved overseas. Plus, it also seems that nothing has been set in stone with regards to where and how much and whether the overall costs savings will be worth it in the long run. That being said, you don't achieve costs savings on the labor side unless somebody gets laid off in the affected area.

I'd like to believe the IAM 100% when they say that the affected workers would be transferred to other departments within the airline, but if the outsourcing goes as planned and the affected workers move within the airline, then you've achieved zero costs savings and now have to foot the bill for the outsourced center(s). Wouldn't it have been better if nothing happened at all?

I wouldn't want to start throwing the blame on any one entity here........Hawaiian DOES have some high labor costs relative to its size in the industry, and it's just one of the factors that unfortunately keeps them with one of the highest break-even load factors in the industry. Dunkerley keeps advocating costs savings, but how exactly do you go about that without aggravating hoards of employees at the airline???
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Old Dec 16, 2006, 8:58 am
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Originally Posted by asu-ua772
The impact of this potential outsourcing move, whether it occurs or not, is unknown at this moment. It will all depend on how much of the 250 affected jobs are moved overseas. Plus, it also seems that nothing has been set in stone with regards to where and how much and whether the overall costs savings will be worth it in the long run. That being said, you don't achieve costs savings on the labor side unless somebody gets laid off in the affected area.

I'd like to believe the IAM 100% when they say that the affected workers would be transferred to other departments within the airline, but if the outsourcing goes as planned and the affected workers move within the airline, then you've achieved zero costs savings and now have to foot the bill for the outsourced center(s). Wouldn't it have been better if nothing happened at all?

I wouldn't want to start throwing the blame on any one entity here........Hawaiian DOES have some high labor costs relative to its size in the industry, and it's just one of the factors that unfortunately keeps them with one of the highest break-even load factors in the industry. Dunkerley keeps advocating costs savings, but how exactly do you go about that without aggravating hoards of employees at the airline???
What they would do is freeze hiring in any categories that they transfer these employees to, and let attrition whittle the work force down to the appropriate level (that is, if you believe the part about no layoffs). Eventually, there would be cost savings. Additionally, I suspect that it would be pretty easy to get fired for cause in the affected departments - little room for second chances. If I worked in a department that was overstaffed, I would be very careful to obey every rule.

I can't wait to hear the outsourced Filipino or Indian agents try to pronounce Hawaiian names.

Just curious - many on this board have posted that they are loyal to HA because HA is local and dedicated to taking care of locals, and that they would be willing to pay higher prices on HA because of that local benefit. Does this possibility (if it happens) affect that loyalty and willingness to pay higher prices?
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Old Dec 16, 2006, 12:37 pm
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Originally Posted by gemac
Just curious - many on this board have posted that they are loyal to HA because HA is local and dedicated to taking care of locals, and that they would be willing to pay higher prices on HA because of that local benefit. Does this possibility (if it happens) affect that loyalty and willingness to pay higher prices?
Not for me. I ditched HA [domestically] a long time ago for NW.

Plus, if you're traveling to points past the Rockies from Hawaii, HA really doesn't make sense from a loyalty standpoint.
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Old Dec 16, 2006, 11:46 pm
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I'm not stressing about this yet. They do have high costs, and it was inevitable. Perhaps the Phillipine based call center will work better than the Indian ones. There's the strong connection between Hawaii and the Phillipines, as one positive aspect to start with.

As for English and the accents, we'll see. Phillipine people I know who have lived in Hawaii for 30+ years still speak with a very strong accent. While we're used to it, mainlanders could seriously freak.
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Old Mar 24, 2007, 1:35 pm
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Hawaiian Airlines To Offshore 250 Jobs

http://www.msnbc.msn.com/id/17769196/

It is finally getting ready to happen. The long-awaited outsourcing of the reservations department to the Philippines and of accounting and IT to India.

From what people who work there have told us, they have been given the choice of a severance package or going to HNL to work.
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Old Mar 26, 2007, 4:29 pm
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The airline said workers would stay on until operations abroad are performing up to standards.
Well, at least they didn't go so far as to say "up to previous standards"

It should be fun trying to have them charge us 15k miles for upgrades instead of cash on april 18 @ 24hrs prior to travel should upgrades be available.(yes I've done this before) I can't wait.
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Old Mar 26, 2007, 7:59 pm
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The HA reservation center hours are currently listed on the HA website "contact us" page as "Daily, 5:00am to 9:00pm, HST". It was 3:30 am to 9:00pm HST, not too long ago. But that's not my point. Point is: wonder what the new hours will be?

With our "Midnight Madness" flights departing LAS - HNL at 2:45am PST/PDT, we are never able to use the HA reservations center telephone operators to 24h advance upgrade with miles: phone center pau at 11:45pm or 12:45 am HST. Always have to u/g on-line, with cash. So now I'm wondering, with the call center in the Phillipines, maybe we'll get 24h telephone access.
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