Catering workers picketed at Denver International Airport yesterday after United Airlines hinted it is considering replacing them with cheaper contractors as soon as it legally can.
United Airlines May Outsource Catering Workers At Its Flight Kitchens
To be clear, United Airlines has announced no catering job cuts. As the recipient of massive federal aid, United cannot furlough workers until at least December 26, 2021 when Cares Act 3 funding expires.
But that has not stopped United from issuing a RFP (request for proposal) to explore outsourcing its catering kitchens, as American and Delta have already done (and United has already done at many stations).
A United spokesperson explained:
“United continues to explore ways to do things differently and become more efficient wherever we can – this RFP is part of that effort. We regularly explore third-party partnerships that have the potential to make us more efficient and improve the experience for our customers.”
United Here is the union representing United catering workers at stations across the United States. A spokesperson noted:
“They have received $7.7 billion in taxpayer bailout and are able to receive billions more and meanwhile disclosed $7.5 million bonuses for top executives if they stay with the company for three years or until federal restrictions expire. It doesn’t appear that United has disputed any of these facts.”
The $7.5 million in bonuses were recently disclosed to the Securities and Exchange Commission. Due to restrictions placed upon the receipt of such bonuses as a condition of accepting taxpayer bailouts, these bonuses are in the form of long-term contingent cash awards.
Economics 101 Or Predatory Corporate Socialism?
Amelton Archelus is a United Airlines employee and refugee from Haiti. He’s been with United for 20 years. Speaking to ABC 7 Denver, he said:
“I don’t see me going to look for another job. We need the public to know what United is doing isn’t fair for us, for me and my coworkers. We need the politicians to know because… they voted for the money to go to United, so they have a right to know exactly what United is doing.”
On the one hand, it is hardly surprising that United is looking to streamline operations after tremendous losses related to the pandemic. If American and Delta do not maintain their own flight kitchens, it is not unreasonable for United to explore why it cannot have the same work done for less.
And yet to even considering cutting staff while offering lavish bonuses for executives (even if contingent) and accepting billions in taxpayer aid strikes me as deeply problematic.
Furthermore, if catering staff is furloughed then rehired by a contractor like Gate Gourmet at lower wages and those workers seek government aid to compensate, United is simply passing the buck to taxpayers once again.
The Racial Component
United Airlines has made race front and center of the conversation by embarking upon an ambitious program to offer preference to people of color and women at its pilot training training academy.
> Read More: United Airlines Targets Women, People Of Color In New Pilot Recruitment Campaign
But United Here notes “United catering workers are overwhelmingly people of color and immigrants.” When the rubber meets the road, what does it mean to give lip service to hiring minorities and people of color while firing them to save a few bucks an hour?
These are issues United must carefully consider.
CONCLUSION
In ordinary times, outsourcing labor is just part of business. United cannot be faulted for wanting to pay less for catering-related expenses. But these aren’t ordinary times and even once United is legally able to furlough workers again, it should think twice about both the optics and ethics of replacing long-term workers with contractors after milking U.S. taxpayer for billions.
image: United Airlines
The people in that kitchen were very nice when I toured the facility a few years ago. I definitely get what the company is trying to do, especially when you understand that their facility at DEN has lost a lot of its business over the past few years. In addition to being the United catering, it also provided catering to the international airlines and produced packaged foods for the local Kroger company stores. United is probably looking at right sizing the operation, and given likely cuts that will remain permanent, sees zero reason to operate the Denver Airport Catering facility themselves.
Just as predicted by people such as Sanders, Warren and AOC. How ludicrous it is that the grifters and hucksters running these airlines claim to be running them on strictly commercial lines, and with full transparency, but in reality they’ve been supping on the public teat forever ( and now more than usual), always crying poor/looking for a handout, but paying themselves mega bucks and bonuses. They are utterly shameless. I’d throw the lot of them in prison for defrauding taxpayers…and it’s not just the US, this is a universal problem. The airline industry seems to attract the biggest ratbags on the planet.
At best a tasteless move by United. It’s like there’s something in Kirby’s DNA that won’t let whatever airline he’s involved with look good for a couple of weeks without shooting himself in the foot.
Couldn’t agree more. If they outsource catering what will all our illegals have to do? This world has numbered its days and I’m no prophet. Burning in it’s greed.
“But that has not stopped United from issuing a RFP (request for proposal) to explore outsourcing its catering kitchens, as American and Delta have already done (and United has already done at many stations).”
Exactly — they’ve done it at all other stations and quite a few years ago at that. If United has seen fit to have a certain percentage of outsourced people working at ticket counters, overseas call centers, ramp, etc., — and this is with union representation for these groups, no less, do these kitchen catering employees really think they were going to remain exempt indefinitely? It’s a miracle they held these jobs as long as they have – in Denver and Newark only.
I’m absolutely no fan of outsourcing = dumbed down to bad service and bad products, loss of jobs and/or then offered as a gesture of goodwill jobs at one third the pay, horrible vendor management, constant turnover, no representation, etc. etc. etc. Don’t like it? – shut up and train your replacements or be fired sooner. Does anyone really think United and dozens of other monopolies really care about their employees ??
Keeping the stock price from cratering is JobOne. Cheap wages support a increased stock price. Executive Bonuses are tied to the stock price. I’m anticipating that the recently hired “ diversity hires” are brought on at salaries 70% less than current pilots in a multi tiered system that eventually replaces the legacy pilots w the equivalent of Uber pilots. It’s called American Exceptionalism
Isn’t this the same United that is currently on the diversity, tolerance, equity, equality, representation of the underrepresented, people of color, people who look like me, single mothers, social services bandwagon? The majority population employees of these flight kitchens are exactly of all of those groups. Oh I get it United, you just don’t want them on YOUR payroll with benefits but you want to be contradictory and still say you care about your employees and continue to open up all opportunities. Hypocrites.