Skift Take

Airlines are being careful not to violate the provisions of the Cares Act, when outsourcing. But once it expires everything is fair game and the ones left paying the price will employees losing jobs.

United Airlines said on Thursday it was moving forward with plans to outsource its catering operations following a six-month review, similar to other airlines’ strategies.

United said it has selected three suppliers to operate the airline’s five kitchens and oversee menu design and administration.

The airline’s staff were informed of the decision in a memo reviewed by Reuters. Employees in good standing would be offered a job at one of the future suppliers and about 70 percent would continue to have union representation, according to the memo.

“We wanted to proceed in a way that allowed us to protect the vast majority of jobs for our United catering team members, and invest in solutions that significantly improve our customers’ onboard experience,” United’s VP of customer innovation and strategy and catering, Mandeep Grewal, told staff.

United expects to initiate the transition in October – when federal payroll aid that prohibited airline job cuts expires – and be working with its new partners by mid-November.

(Reporting by Tracy Rucinski in Chicago and Sanjana Shivdas in Bengaluru; Editing by Krishna Chandra Eluri)

This article was from Reuters and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

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Tags: airlines, cares act, coronavirus recovery, outsourcing, united airlines

Photo Credit: An earlier photo of a Strawberry Fields salad served on a United flight. Those kinds of meals now will be prepared by an outside caterer. United Airlines