Costco – JetBlue Flight Attendants Reject Labor Deal Amid Coronavirus Journey Slowdown
Fgentle attendants at JetBlue Airways (NASDAQ: JBLU) have rejected a tentative contract settlement solid between the airline and union leaders, including an extra layer of uncertainty at a time when the airline is already coping with a pandemic-related slowdown.
The airline’s flight attendants voted to unionize in April 2018, and the corporate and the Transport Employees Union (TWU) have been in talks a couple of contract. The 2 sides struck a deal late final month, topic to approval from the union’s 5,000 members.
Picture supply: JetBlue.
JetBlue stated Friday afternoon that the settlement was rejected by union memberships, although it didn’t disclose the margin of defeat.
“We’re disenchanted within the outcomes of the vote,” Ian Deason, JetBlue’s head of buyer expertise, stated in an announcement. “Each the TWU and JetBlue labored by way of unprecedented circumstances to achieve an settlement that was honest to our inflight crewmembers. We’ll work with TWU to find out subsequent steps.”
The rejection is a blow to JetBlue because it makes an attempt to reduce prices to journey out the COVID-19 disaster. Airlines have seen journey demand evaporate because of the pandemic, with JetBlue forecasting fourth-quarter income to be down 65% 12 months over 12 months.
There isn’t any speedy danger of a strike or a piece stoppage. Beneath the Railway Labor Act, which governs airline union negotiations, the 2 sides will return to the desk for brand spanking new talks. However given how trade circumstances have deteriorated within the two years for the reason that preliminary union drive, it’s removed from sure the union will be capable of extract higher phrases within the new spherical of negotiations.
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