United to Outsource Over 600 Jobs at 12 U.S. Airports

By Paul Riegler on 9 July 2014
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A United jet on taxi in San Francisco

A United jet on taxi in San Francisco

United Airlines said it would outsource over 600 jobs as part of overall cost-cutting efforts.

The move will impact employees at 12 U.S. airports.  Starting October 1, the positions, which include check-in agents, baggage handlers, and customer service representatives, will go to contractors who will hire and manage the workers at a lower cost to United.  The airports that will be impacted by the move include Buffalo Niagara International Airport, Detroit Metro Airport, and Charlotte Douglas International Airport.

The cost savings may be significant, as the starting wage at outsourcing companies including Envoy Air (a unit of American Airlines Group that until recently was known as American Eagle), Delta Global Services, and Menzies Aviation is in the $8 to $9 per hour range versus the $12 to $24 the airline currently pays.  Some workers employed by the contractors receive health care benefits, while others do not.

Last year, United outsourced over 500 jobs at nine airports in North America, turning them over to Envoy Air.

Not all jobs are being outsourced.  United also announced on Monday that employees at three smaller airports in Hawaii had agreed to wage and work-rule concessions in order to keep their jobs.  In addition, United said it will move approximately 400 jobs currently performed by contractors at four locations, Denver, Honolulu, Phoenix, and Washington Dulles, in house.

(Photo: Accura Media Group)

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