Transport Airports

United Airlines to Outsource Some Ticket and Gate Agent Jobs

Jul 08, 2014 9:30 am

Skift Take

United’s move to outsource more than 630 jobs, including some ticket and gate agents, runs counter to its drive to better train customer service personnel. When you outsource jobs, to a great extent you lose that sort of control.

— Dennis Schaal

Free Report: India Tourism Insights Report

Free Report: The Megatrends Defining Travel in 2015

Robert Galbraith  / Reuters

A United Airlines passenger jet taxis to a runway at San Francisco International Airport in San Francisco, California April 22, 2013. Robert Galbraith / Reuters

United Airlines said it plans to outsource more than 630 union jobs at 12 U.S. airports in a cost-saving move.

Affected positions include ticket and gate agents and baggage handlers at U.S. airports, including Salt Lake City; Charlotte, North Carolina; Pensacola, Florida; Detroit and Des Moines, Iowa, the company said. United Airlines would shift these jobs from its payroll and hire other companies to provide the employees, under the outsourcing plan.

“This is a difficult decision, but we need to ensure that our costs are competitive,” United spokeswoman Christen David said.

About 637 workers could be affected by the outsourcing moves, the carrier added.

James Carlson, a spokesman for the International Association of Machinists and Aerospace Workers, said provisions of the union’s contract with United call for affected workers to continue to have jobs at the carrier if they are willing to relocate. Should workers choose not to move, they will go on furlough and would have recall rights, he added.

“This is a bad business decision for United Airlines,” Carlson said.

United also said it will bring in-house 365 customer service jobs at its Denver and Washington Dulles airport hubs as well as in Honolulu. United added it has hired 44 ramp workers at its Phoenix operations.

United Continental, formed by the 2010 merger of United and Continental Airlines, has been taking a number of cost-cutting moves to improve earnings and reduce debt. Earlier this year, it announced the closure of its hub at the airport in Cleveland.

The carrier, which has more than 85,000 workers, reported a wider first-quarter loss in April as revenue fell and costs increased.

(Reporting by Karen Jacobs in Atlanta; Editing by Jan Paschal and Eric Walsh)

Tags: ,

Next Up

More on Skift

Daily Travel Startup Watch: QueroPassagem, bigfly Travel Group and More
Gogo CEO: The Connected Plane Will Take the Mystery Out of Crash Probes
Southwest’s New Ad Campaign Acknowledges We Don’t Just Fly for Fun
6 Best Practices for Developing a User-Generated Content Strategy