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United to outsource 637 jobs

  • United Airlines (UAL) has announced it will outsource 637 union jobs (mostly ticket/gate agent and baggage handler positions) at 12 U.S. airports. The company is trying to cut costs in every area it can, after reporting a first-quarter loss in April due to declining revenue and increased costs.
  • "This is a difficult decision, but we need to ensure that our costs are competitive," says United spokeswoman Christen David.
  • Under the outsourcing plan, United Airlines will shift these jobs from its payroll, and hire other companies to provide the employees.
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Comments (4)
  • devlau20
    , contributor
    Comments (270) | Send Message
     
    So few? Sign of a company in trouble if that small a number matters. UC won't make it on cost-cutting alone. Too many routes….too infrastructure heavy. Too many 757s remaining in the fleet.
    8 Jul 2014, 02:52 AM Reply Like
  • Cyapp
    , contributor
    Comments (9) | Send Message
     
    United prices their product at premium levels. This is not a good move for a product that is priced in the manner that I mentioned, they need to focus on reliability (flight times and service) and customer service. I have already dealt with these "outsourced" companies at various other front line locations and they were awful. Now that I am elite, I no longer deal with outsourced agents but I feel sorry for the passengers that do. The only thing I can say is that I am now happy that I have added American airlines to the mix of flights that I take because I only see a further erosion of their product.
    8 Jul 2014, 06:25 AM Reply Like
  • tw747
    , contributor
    Comment (1) | Send Message
     
    United has already done this in Canada, and the results to date have been absolute chaos. Flights arrive (even early sometimes) and still sit 20-35 minutes to wait for ground staff and a gate agent to arrive.

     

    United has chosen a business strategy, which seems to choose the lowest common denominator, and yet still expect customers to pay a premium. Like others have stated, UA needs to focus on customer service, product quality and reliability.
    8 Jul 2014, 01:03 PM Reply Like
  • LB184677
    , contributor
    Comment (1) | Send Message
     
    United is on a downward spiral. Their service levels are collapsing, employees very unhappy, and elite customers leaving them. They are becoming like Ryan Air. I think at some point this will affect safety. I was a loyal Continental customer, but now no longer fly United. It's not a cheap flight if you and your baggage don't arrive. Financial analyst focus on routes, aircraft, and facilities, but the core issue is employee focus and customer focus. They currently have neither.

     

    I have voted with my feet (United does not listen to customers, just look at their Facebook page). I only fly Southwest, Delta and foreign carriers.

     

    The sad think is Smisek will receive a large exit bonus for killing two airlines for the price of one!
    8 Jul 2014, 11:03 PM Reply Like
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