1 WARN Layoff Notice for Travel and Transport on Jul 2020

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Over 1,300 layoffs hit logistics companies across us.

Layoffs continue across the freight and logistics industry, with companies in Florida, Georgia, Illinois, Michigan and Texas announcing job reductions and facility closures over the past two weeks.

Universal Logistics

Warren, Michigian-based Universal Logistics is permanently shuttering two of its subsidiaries and laying off a total of 677 employees, according to notices recently filed with the state.

The layoffs are related to Universal-operated entities Logistics Insights Corp. and Universal Dedicated of Detroit, an auto parts warehousing and logistics facility. Both operations were in Detroit.

Universal Dedicated of Detroit’s closure will affect 230 truck drivers who worked from the facility.  Logistics Insights Corp.’s closure includes 164 warehouse workers, 212 forklift operators, 26 dockworkers and 45 clerical employees.

Universal Logistics (NASDAQ: ULH ) is a truckload transportation, intermodal and logistics provider across the U.S, Mexico, Canada and Colombia. The company has more than 10,000 employees.

It did not provide a reason for the cessation of operations at the two entities in their state filings.

Officials for Universal Logistics did not immediately respond to a request for comment from FreightWaves.

Swissport Cargo Services

Global cargo handler Swissport Cargo Services recently announced it is laying off 235 workers at a cargo handling operation in Atlanta.

The layoffs, which are related to losing a contract with e-commerce giant Amazon, are expected to be finalized by May 22.

“We’re always evaluating our operations to better serve our customers and have made the decision to change vendors at Atlanta Hartsfield International Airport,” Sam Stephenson, Amazon spokesperson, told FreightWaves. “This will not impact customer deliveries in the Atlanta area.”

Amazon is working with incoming vendors to identify opportunities for impacted workers.

On Feb. 19, Swissport announced it was laying off 378 workers at a cargo handling operation at Newark Liberty International Airport. The job reduction was also related to losing a customer contract, officials said.

“Our customer has decided to change its service provider and to terminate the contract,” Swissport officials told FreightWaves. “To our great regret and as a result of this decision, all 378 Swissport employees at Newark airport will no longer be employed by Swissport.”

The Kroger Co.

The Kroger Co. (NYSE: KR ) recently announced it is cutting over 230 jobs and permanently closing delivery hubs in San Antonio and Austin, Texas, as well as Miami.

The facilities operated as part of the Kroger Fulfillment Network, an e-commerce grocery delivery service for residential customers. The layoffs include 198 delivery drivers.

“Despite our best efforts, including the support from new customers, learnings from other locations, and the incredible work of our associates, these facilities did not meet the benchmarks we set for success,” Kroger officials said in a statement to the media.

The facilities will permanently close by the end of May.

RXO Logistics

Transportation solutions provider RXO (NYSE: RXO ) recently announced it is laying off 114 employees at a facility in Warren, Michigan.

The layoffs are from RXO Managed Transport, a subsidiary operating at 29755 Chevrolet Road. Company officials did not give a reason for the layoffs in a notice filed with the state.

Officials for Charlotte, North Carolina-based RXO told Crain’s Detroit Business that the layoffs were related to the loss of a customer contract.

The layoffs are expected to be finalized by May 31.

Packaging solutions provider Nosco Inc. is closing a facility in Carrollton, Texas, and laying off 51 workers.

Company officials said the facility’s closure is related to the relocation of some operations to company headquarters in Pleasant Prairie, Wisconsin.

The Carrollton facility will close permanently by Oct. 2.

Ryder Integrated Logistics

Ryder Integrated Logistics is laying off 29 workers from a trucking facility in Romeoville, Illinois.

The job cuts, which are scheduled to be finalized by April 30, are due to the loss of a customer, according to state filings.

Ryder Integrated Logistics is a subsidiary of Ryder System Inc. ( NYSE: R ), a Miami-based leasing, fleet management, transportation and supply chain solutions provider.

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Are Travel Tech Companies Safe From Layoffs? These Execs Are Optimistic — For Now

Justin Dawes , Skift

November 10th, 2022 at 2:00 AM EST

While Big Tech is laying off thousands, the travel tech companies interviewed for this column are hiring dozens of people. That's good for now, but we will see how hard the global economy gets hit next year. If too hard, some cutbacks may be inevitable.

Justin Dawes

Series: Travel Tech Briefing

Travel Tech Briefing

Editor’s Note:  Exclusive reporting on technology’s impact on the travel industry, delivered every Thursday. The briefing will guide executives as they decide if their companies should “build, buy, or partner” to stay ahead.

Big Tech companies are laying off tens of thousands of people. 

Most recently Meta announced this week that it is cutting about 11,000 people. And Twitter, of course, has had its own reports. There have been other layoffs by Salesforce, Stripe, Lyft, Coinbase, Shopify and more. 

So, is travel tech next? 

Maybe. But there are no signs yet. Booking.com, for example, reported $6.1 billion in revenue last quarter — its best quarter ever. And the CEO said demand is not slowing down. 

Even so, executives are keeping an eye out, though some have said they’re not too worried — at least not yet. 

That’s also what Ian Brooks is seeing as co-founder of travel tech recruitment firm Gail Kenny . The firm has hired more than 1,000 mid- to senior-level tech employees over the last 15 years, focused mostly in the European market, he said. 

“Yes, there’s a degree of caution,” Brooks said. “But at the same time, I think a lot of travel companies cut back so much during the pandemic … They’ve seen how difficult it has been to rehire people, so they’re not rushing into cutting back again. Not yet.”

The early months of the year are typically a busy time for bookings, so he expects companies will wait for that season before making big decisions. 

Meanwhile, some travel tech execs believe their companies will be sustained by an increased need for industry modernization, and some see the Big Tech layoffs as an opportunity for their own businesses. 

A Need For Travel Tech

Travel tech companies got a rise in business later in the pandemic as others in the industry needed to accelerate digital transformation. Much of that need has come from an extremely sparse hospitality workforce. 

“Businesses have worked out they’ve got to be more efficient because staff are costing more,” Brooks said. “Wage inflation is 10, 15, 20 percent in some cases. You might have to employ less people to do the same amount of work because you’re going to have to pay them more.”

That need for digital transformation is why HotelKey , a Texas hotel property management system platform, has more than 100 open jobs that need to be filled in the next 12-18 months. The company hired 60 employees globally over the last 12 months, according to Aditya Thyagarajan, co-founder and president of HotelKey. 

“HotelKey has always done well in a tough market. When there is a slow down, our clients get a chance to look at technology options to reduce spend and improve operational efficiency. We thrive in this environment,” Thyagarajan said in an email. “Our cost effective solutions eliminate technical debt and provide our clients opportunities to enhance workflows and processes to reduce cost and overhead.”

He said the company signed a “large global enterprise” during the pandemic. 

And Lodgistics , a hotel operations software company based in North Carolina, has 20 employees and is planning to hire another 20. 

“Our software, which is an operations and collaboration platform, solves what I think is the biggest problem in hospitality right now, which is the labor crisis,” said Jessica Kramer, CEO of Lodgistics. “We are a tool to help hoteliers operate and collaborate and, in essence, ensure retention of the people that they do bring in. We feel like being at a company that is uniquely focused on such an important problem means that we are hiring and we’ll be positioned for growth.”

The CEO of Busbud , an online bus ticket marketplace, believes that the pent-up demand in travel will keep his company going, even as some people have less disposable income. 

“We’re actually seeing a lift in people taking the bus and not driving,” LP Maurice, CEO and co-founder of Busbud, told Skift this week . “Most of them are actually leaving their car at home because of gas prices.” 

Busbud also now offers more tech services for the ground transport industry, which is largely behind the times regarding digital modernization, so he thinks there is an opportunity there to help that industry drive more sales . 

A Bigger Talent Pool 

It still takes an average of six months — up to a year in some cases — to hire a new employee at Digitrips , a French business-to-business travel tech group whose companies include online travel agency Misterfly .

So, that company sees an opportunity with the larger talent pool that comes from Big Tech layoffs, said Emilie Dumont, managing director of Digitrips. 

“No, that does not concern us,” Dumont said. “To be very honest, we’d rather see that, as probably the tension on tech recruitments might be a little bit less high in the coming years. Maybe if there is less tension on tech profiles, that could help us to have a shorter recruitment period.” 

Maurice of Busbud had a similar thought. His company has hired 20 people in the last six months and has another dozen positions open. 

“I think at least for now, we’re seeing it as an opportunity, but we’re also being very mindful and prudent of not pressing on the gas so hard either, just looking at the signals in the market and adjusting our hiring accordingly to what we’re seeing in the market. Almost taking it one quarter at a time,” Maurice said. 

While demand for talent outweighs supply, Brooks of the Gail Kenny recruitment firm warns travel tech companies that others are looking, too — and companies in finance-related tech can usually pay more. 

“There’s a war for talent in travel to get good candidates, but there are people coming from industries outside of travel looking to poach that,” Brooks said.

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Travel And Transport Layoffs

Recent news and discussions about travel and transport layoffs, travel and transport reviews | glassdoor.

https://www.glassdoor.com/Reviews/Travel-and-Transport-Reviews-E13475.htm

Travel and Transport Reviews | Glassdoor

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Layoffs expected when pay support ends for US carriers

By Cirium 2020-06-22T20:37:00+01:00

Air travel may not return to pre-coronavirus levels until at least 2023, so US carriers are making plans to downsize their employee base, echoing the warnings of transportation analysts that the industry is “staff heavy” for a market reeling from the ongoing coronavirus pandemic.

US airlines employed 604,551 full-time and 110,466 part-time workers in the middle of April, which was 37,000 fewer than in March, according to the US Department of Transportation. The coronavirus travel downturn caught airlines in the middle of a hiring boom, as the industry workforce grew from 736,000 people in April 2019 to 752,000 in March 2020.

Grounded AA jets

Source: Pittsburgh International Airport

American Airlines jets parked at Pittsburgh International airport

Finding enough pilots to meet the steady growth of air travel was among the biggest challenges for some carriers in 2019, but now “airlines are staff heavy for this current market”, Hunter Keay, aerospace analyst at Wolfe Research, said during an online discussion on 16 June.

“Airlines have over hired during the past few years,” Keay says, adding that carriers are at their best during a crisis and “really pivot when times are tough”.

As of June, revenue for US airlines is down 91% year-over-year and passenger travel is down 80% compared with 2019, Airlines for America chief economist John Heimlich says during the online discussion. Even as air travel recovers from the low point of the coronavirus downturn in April, 44% of US carrier’s fleets remain grounded as of June, Heimlich said during the event hosted by the International Aviation Club of Washington, DC.

“Airlines were very proud of their hiring in the 10 years leading up to the pandemic,” Heimlich says, noting that industry employment growth for a time outpaced the average US business.

After suffering months of nearly no revenue, however, Heimlich says “most [airlines] have been very pubic about the fact that they will be too large” for the near future due to the pandemic’s impact on the market.

Airlines seeking voluntary furloughs during the health crisis “have made clear they will be eager to recall folks when the revenue bounces back”, he says.

While aircraft are still flying to keep the USA connected, the average US load factor required to break even has risen to 79%, up from 76% a year ago, Heimlich says. That load factor is expected to rise above 79% in the months to come, and the trade association expects US airline employment will not return to 2019 levels until 2023.

SEEKING VOLUNTARY LAYOFFS

Airlines are encouraging workers to take voluntary furloughs or other steps to cut costs, seeking to avoid forced layoffs as they burn through millions of dollars every day.

Southwest Airlines  tells Cirium it has no plans for forced layoffs but “it is fair to assume that we are overstaffed in many areas” as it plans to reduce capacity at the end of its 2020 seasonal routes. Options for its 60,000 employees include “extended emergency time off”, which provides health benefits, travel privileges and reduced compensation if workers take at least six months off. Another voluntary separation programme gives workers an exit package to resign their jobs.

At  American Airlines,  40,000 employees have accepted early retirement, a reduced work schedule or a partially paid leave, the carrier tells Cirium. If not enough people volunteer for one of those options, then in July the carrier says it will begin “to take the difficult step of involuntary separations”. As a recipient of federal coronavirus relief funds, American would have to wait until after 30 September to layoff employees.

“We’re also in the process of reducing our management and support staff team by approximately 30%,” American says.

Alaska Air Group , the parent of  Alaska Airlines  and  Horizon Air , employs around 22,000 workers, 6,000 of whom have accepted voluntary short-term and incentive leave.  Alaska Air Group  president Ben Minicucci has said the company may reduce its workforce by 3,000 people in 2021.

Many smaller carriers are in an easier position than the majors to make job cuts because they outsource much of their work to contractors, but cost-cutting remains a concern as the pandemic drags on.  Allegiant Air  tells Cirium it is optimistic about the slow recovery of air travel as states begin to reopen but “we don’t yet know the long-term effects of the pandemic and what the arc of demand will look like”.

The parent company of the leisure carrier has halted spending on non-airline projects, including construction of its Sunseeker Resort in Florida, but has “not made definitive plans regarding fleet and network, which would drive workforce needs and decisions”.

Staffing reductions follow the grounding of aircraft that accelerated in March after the World Health Organization declared coronavirus a global pandemic. The global in-service fleet declined from around 29,000 passenger aircraft in January to about 13,200 in mid-April, Cirium fleets data shows. Airlines now have about 18,000 aircraft in service amid the slow recovery for air travel.

PAYROLL SUPPORT DEADLINE

The federal CARES Act enacted in March bought US carriers time to consider their options on staffing, making available $25 billion to passenger airlines and $4 billion to cargo carriers for the exclusive use of employee wages, salaries, and benefits. Forcing layoffs or reducing hours are banned through 30 September as a condition of this aid programme.

Unions for airline workers have pushed for an extension of the payroll support, including the Air Line Pilots Association, International (ALPA) and the Association of Flight Attendants-CWA (AFA). To give airlines more time to negotiate voluntary furloughs or find a stable financial footing, the AFA wants the CARES Act payroll support extended through 2020.

Since US airlines began grounding aircraft in March, around 40,000 flight attendants have accepted voluntary leave offered by their carriers, amounting to 35% of US flight attendants, says Susannah Carr, a  United Airlines  flight attendant and AFA representative.

“When CARES was written it was expected the industry would be closer to full recovery by the fall,” Carr says in a statement. “It is clear now that will not happen.”

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US DOT says airline employment at highest level since April 2020

2021-03-11T00:56:00Z By Pilar Wolfsteller

The US Department of Transportation (DOT) says airline industry employment in January rose to its highest level since April 2020, a tentative sign that demand for air travel may be returning following an almost year-long decline due to the coronavirus.

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Allegiant Travel Company, parent of ultra-low-cost carrier Allegiant Air, reported a $93 million loss in the second quarter as the coronavirus pandemic ravaged the air transport industry during the period.

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US pilot union calls for extension of airline financial aid

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Pilot union Air Line Pilots, International (ALPA) has again called on the US Congress to extend its payroll support programme (PSP) another six months beyond the original expiry date of 1 October.

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What We Know About the Railroad Labor Deal

A tentative deal averted a strike by tens of thousands of rail workers, breaking an impasse in negotiations over sick time and working conditions.

travel and transport layoffs

By Marie Solis

  • Sept. 15, 2022

Early on Thursday morning, freight rail companies and unions reached a tentative agreement to avoid a strike that could have begun on Friday. The agreement now heads to union members for a ratification vote, a process that could take a few weeks. Workers have agreed not to strike while the vote is tallied.

The deal ended an impasse between the rail industry and tens of thousands of workers across the country, averting a shutdown of a critical network that could have made it virtually impossible to transport the vast numbers of products — from oil to grain — that are carried on trains in the United States.

In recent days, the White House has sought to avoid a work stoppage, which would have come at an inopportune time for the Biden administration and exacerbate already high inflation and disrupt Americans’ travel and businesses.

With the midterm elections approaching in November, President Biden and other administration officials have been focusing largely on the economy in their pitch to voters. A major labor strike — particularly an enduring one — would complicate his narrative about the health of the economy under his leadership. At the same time, the president has portrayed himself as an ally to labor.

What was the dispute between railroads and unions about?

The two main sticking points were scheduling and sick time . The railroad companies had been unwilling to agree to labor groups’ request that workers be able to see a doctor or attend to a personal matter without risking disciplinary action. Union representatives also said that workers often have long shifts scheduled on short notice.

What’s in the tentative deal that the railroads and unions negotiated?

The Association of American Railroads, an industry group, said in a statement that new contracts would include a 24 percent increase in wages in the five years from 2020 through 2024. There would also be a payout of $11,000, on average, when the agreement is ratified, the association said.

In addition, the agreement gives workers one additional paid day off and an ability to attend medical appointments without penalty, labor unions said, measures that are intended to ease what workers said was a rigid scheduling system that didn’t allow them to take care of their health or take personal time they needed.

The Brotherhood of Locomotive Engineers and Trainmen and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers said the deal would also freeze workers’ monthly health care contributions, ensuring those costs would not increase during the next round of contract negotiations.

What’s at stake for travel, supply chains and inflation?

The labor negotiations did not involve Amtrak employees, but the company on Wednesday announced the cancellation of long-distance passenger trains because it uses freight tracks that could be disrupted by work stoppages. On Thursday, it said it was “working to quickly restore canceled trains.”

Rail freight is the centerpiece of the global supply chain , which has already been disrupted by the pandemic, with cargo ships, trains and trucks facing continued difficulties transporting goods. A strike would slow down the circulation of goods within the United States and with overseas trade allies.

The rail system also brings some crude oil from Canada into the United States, and helps export American gasoline and diesel to Mexico. A disruption to those movements could send gas prices, which have steadily fallen since June , back up. Fuel prices are a major driver of overall inflation.

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Air travel will suck this summer. Blame the airlines’ shortsighted layoffs.

American, Delta, and United spent a year laying off workers. Now the airlines need them back.

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Travelers wearing protective masks push luggage and line up to check in for JetBlue at JFK Airport.

The airlines are no longer desperate. Gone are the pandemic-era flight deals, flexible booking policies, and open middle seats. Millions of Americans are traveling again, as the weather warms (in some parts of the US) and vaccination rates rise. This is cause for optimism. The joys of normal life — summer vacations and guilt-free social gatherings — are on the horizon. But first, the airport.

Travel is back, and so are its all-too-many inconveniences: long security lines, pissed-off passengers, boarding mishaps, and random airline fees . It’s not good news for summer travelers, especially those with trips booked around Independence Day , so plan accordingly for all of the above. And it isn’t just that rowdy travelers might be acting up. From a logistical standpoint, things have actually gotten worse.

The number of flyers daily in the US is nearly back to pre-pandemic levels, even though business and international travel have been slow to resume. Airlines and airports have struggled to accommodate this influx, which has resulted in longer customer service wait times , significant flight delays, and sudden cancellations. In some cities, airport concession stands and restaurants aren’t fully staffed or open, leaving stranded travelers with fewer options for food and beverages.

Dropped someone off at the airport before 6AM (Austin). Jammed. Go early. Also: @AmericanAir a complete disaster. Canceling flights, terrible service. They took the generous bailout and fired thousands. Would avoid, if possible. — Wait Capital (@WaitCapital) June 23, 2021

Industry executives have attributed such inconveniences to bad weather and, perhaps more vaguely, “labor shortages.” A May memo from the Transportation Security Administration (TSA) to its employees warned that over 100 of America’s largest airports will struggle with staffing shortages and asked office workers to assist with airport security on a volunteer basis. Delta’s CEO was concerned about staffing enough contracted workers for the summer. American Airlines recently announced plans to cancel hundreds of flights in July, citing “unprecedented weather,” a spike in travel demand, and a dearth of workers. Skift, a news site on the travel industry, predicted a summer full of subpar domestic travel experiences — from elbow-to-elbow seating on flights to sold-out destinations — as a result of the labor shortage.

Republican lawmakers and business leaders have used similar language to describe America’s slow job recovery. They’ve blamed the worker shortage on generous unemployment benefits and stimulus checks, claiming that people would rather stay at home and receive government aid than apply for jobs, a theory rejected by economists. According to the Washington Post’s Heather Long, America is undergoing a “ great reassessment of work ,” as people consider changing their industry or seek out higher-paying, stable jobs that are less public-facing . Regardless of the reason, America’s labor market is still far from normal , and certain sectors are recovering at different rates.

After a year spent slashing jobs, airlines and aviation subcontractors are now back on the hiring train. It’s not enough to hire back workers; those workers need to undergo training and security clearances. “For airlines, you just don’t go out and hire somebody,” Mike Boyd, an aviation consultant, told Yahoo Finance . “If you’re going to have them work at a ticket counter, they have to have training in hazardous materials and security. You just don’t bring people on real quick. The real issue is [the airlines] had to let somebody go.”

United’s CEO recently warned of a pending pilot shortage as older crew members retire, but it’s not just pilots that are in demand. Airlines and airports are looking to staff a variety of positions, from flight crew and food service workers to customer call staff and gate agents.

The airlines’ response has been akin to a corporate shoulder shrug that sidesteps the industry’s role in fragmenting its workforce, argued Laura Moran, a spokesperson for the Service Employees International Union. “There was a time when most folks — the customer service and wheelchair agents, security officers, cabin cleaners, and baggage handlers — were directly employed by the airlines,” Moran said. “Now, we have a real patchwork of subcontracted workers who perform crucial labor for the airlines.”

Some of these positions were first on the chopping block when travel halted. Thousands of jobs were nixed to stem immediate revenue loss — by airlines, airports, or the vendors they contracted out work. The travel and leisure industry accounted for a staggering 39 percent of all US job losses from Covid-19. Airlines cut about 90,000 full-time , in-house positions by the end of 2020, including the 30,000 workers they’ve placed on furlough.

Workers employed directly by the airlines were promised some job security; domestic carriers received billions of dollars in federal aid — $25 billion in April 2020 and $15 billion in December 2020 — predicated on the condition that they would bring back employees or keep them on payroll for a set period of time. But thousands of others in contracted positions , like cabin cleaners and wheelchair attendants, weren’t offered the same protections. A House investigation revealed that aviation contractors axed tens of thousands of jobs — roughly 15 percent of their workforce — even after receiving CARES Act funding for payroll assistance.

American Airlines food caterers march in line, holding up signs that read “One job should be enough” to protest the lack of health care benefits they receive.

Thus, it’s inaccurate to chalk up a diminished passenger experience to a “labor shortage” without contextualizing the airline industry’s working conditions and standards — and why it’s seemingly unable to summon back tens of thousands of crucial workers. A shortage does little to acknowledge the fluctuations in work consistency and lack of financial security that many have contended with. The industry has long relied on an understaffed and underpaid workforce, with many clocking in on the front lines (which, again, are unusually stressful these days). Yet, airlines have consistently deflected blame toward the vendors and contractors that employ some of these missing workers. It’s a tactic used by major corporations (and the airlines themselves) to shirk responsibility for low wages and the lack of worker benefits and protections.

Airlines work with different vendors to outsource different types of labor, from cleaning to food services to baggage handling. These vendors independently negotiate subcontracting agreements with the airline, Moran explained, which determines workers’ wages and benefits: “The result is a disconnected system of work with no standard wages, and it’s a situation the airlines have created to keep costs down and profits up. It’s unreasonable that low-wage Black and brown workers on the front lines are expected to bear the brunt of these problems when airlines are trying to reach profitability.”

Now, across the country, it seems there are fewer workers willing to return to an underpaid, unstable job, whether in retail, food service, or travel. The work of airport unions and organized labor in recent years have helped secure better wages for subcontracted employees, but inequities still persist in many cities.

“There isn’t a shortage of workers. There is a shortage of workers wanting to come back to work for poverty wages,” said Elsa Caballero, president of SEIU Texas, whose union represents janitorial, security, and building staff in airports. “Airlines, which are a major employer in Houston, are still paying way below $12 an hour.”

United, for example, has previously downplayed its relationship to subcontracted airport workers, dismissing its influence over vendors’ pay. In response to a “Fight for $15” protest in 2017, a spokesperson emphasized how United does “not have a direct employer-employee relationship with [its] vendors’ employees,” as if that alone absolves the airline of any responsibility.

However, airlines do have leverage to raise wages, if they choose to intervene and place pressure on contractors. Workers at Philadelphia International Airport, for example, qualified for a $12 minimum wage after the city passed a “living wage” ordinance in 2014, but subcontracting companies refused to increase their pay rate until American Airlines upped its contract to pay for the discrepancy. American interjected again in 2017, the Philadelphia Inquirer reported , when contractors refused to bargain with the workers’ union.

“In Houston, we’ve had to work with the mayor and city officials to create an executive order to ensure that an airline like United will pay workers a living wage,” Caballero said. “We know airlines can pay more, but they are lowballing the contracts they offer vendors.”

Substantial federal aid has done little to assuage workers’ and union leaders’ fears of further layoffs. Airlines are still searching for ways to keep costs low. United Airlines, for example, told its in-house catering workers earlier this year that it was “ exploring the option ” of working with a third-party contractor for its kitchen services, igniting a series of worker protests in April.

Representatives learned that @United has issued an RFP to outsource over 2,500 catering jobs in Newark, Cleveland, Denver, Houston & Honolulu, even tho United has already received $7.7 billion from the US gov't in order to keep workers employed & is able to receive billions more. — UNITE HERE ✊ (@unitehere) May 3, 2021

Running an airline is a high-cost operation. Slate’s Henry Grabar previously described the industry as “ low-margin, capital-intensive businesses ,” which means a company’s cash savings won’t be very helpful during an extensive crisis. ”Capital-intensive means it’s hard to tighten your belt,” Grabar wrote. “You can save some money on fuel and food, but not on labor or rent. You still have to pay banks or leasing companies for your planes. You can’t save those seats for later, or fly twice as many flights when business picks up again. There is no factory to shut down. Even if you ground flights, many costs are fixed.” Customers have been expected to pay additional fees on top of ticket costs for additional luggage, seat selection, and priority boarding. (Fees are also another stream of revenue for airlines, one that is exempt from the 7 percent excise tax on domestic airfare.)

Yet the aviation industry has a long history of generously padding the wallets of its executives, investors, and other shareholders through stock buybacks and hefty compensation packages . All this, despite being a fundamentally expensive business. So far, they’ve squared that tricky circle by passing on costs to the consumer and neglecting the needs of workers who are central to airline operations.

While customer service and labor issues can seem at odds with one another, Caballero argues that improved working conditions can directly affect the passenger experience. Travelers and workers could find solidarity in the fact that they both expect more from airlines. If travelers are being nickel-and-dimed for every expense, where does the additional money go? Research shows that higher pay boosts employee performance and retention; in a place like the airport, in which so many workers are public-facing employees (sometimes dealing with unruly passengers), fair compensation and benefits should be prerequisites.

“This is a consumer issue,” said Caballero. “It affects passengers when airport workers are paid poorly and don’t want to show up, when there’s no one to push a wheelchair or answer questions at the gate. Their work is undervalued, yet it’s incredibly important to passengers.”

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When you partner with CTM you’ll enjoy the experience of business travel done differently – a uniquely designed travel program, built for your business’s specific travel needs and objectives, and expertly delivered in every region you operate in. We design travel programs that drive strategic results for every part of your business and every member of your team.

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IMAGES

  1. Amtrak Warns of Layoffs and Project Delays Without Billions in

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  2. Layoffs and how to manage them

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  3. Dealing with a layoff

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  4. Layoffs and How to Prepare for Potential Claims

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  5. What Are Layoffs & How Do They Work?

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  6. US Layoffs Rise 38 Percent

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COMMENTS

  1. Expedia is cutting 1,500 jobs as travel demand slows

    New York CNN —. Expedia, the online travel agency, is eliminating about 1,500 employees as part of an "organizational and technological transformation.". The cuts, which amount to nearly 9% ...

  2. Corporate Travel Management buys Travel and Transport for $200 million

    Publicly held Corporate Travel Management (CTM) acquired employee-owned Travel and Transport, along with its Radius Travel division, for $200.4 million. The 75-year-old Travel and Transport name ...

  3. 1 WARN Layoff Notice for Travel and Transport on Jul 2020

    Travel and Transport filed 1 WARN layoff notice on Jul 2020 in Nebraska. 49 employees were laid off in total from this layoff. 👉 See laid-off Travel and Transport employee profiles 💰 See Travel and Transport tax, EIN, & IRS information

  4. Over 1,300 layoffs hit logistics companies across US

    Ryder Integrated Logistics is a subsidiary of Ryder System Inc. ( ), a Miami-based leasing, fleet management, transportation and supply chain solutions provider. The post Over 1,300 layoffs hit ...

  5. U.S. Travel Lays Off Senior-Level Staffers Amid Restructuring

    U.S. Travel is having a shakeup in its senior leadership. The U.S. Travel Association has eliminated the positions of six employees as it restructures the organization, according to an internal ...

  6. Why Airport Employees Are Striking

    Workers at Airports Have Had It. Across Europe, airport and other transport employees are striking, disrupting summer travel plans to demand better staffing and pay. Airport employees protested ...

  7. Travel and Transport Reviews

    Travel and Transport has an overall rating of 3.9 out of 5, based on over 119 reviews left anonymously by employees. 74% of employees would recommend working at Travel and Transport to a friend and 44% have a positive outlook for the business. This rating has decreased by -1% over the last 12 months.

  8. American Airlines to Lay Off 656 Workers as It Consolidates Customer

    January 29, 2024 at 2:00 PM PST. Listen. 2:29. American Airlines Group Inc. will lay off 656 employees who help passengers with lost luggage and other travel problems as their jobs are ...

  9. Are Travel Tech Companies Safe From Layoffs? These Execs Are Optimistic

    Big Tech companies are laying off tens of thousands of people. Most recently Meta announced this week that it is cutting about 11,000 people. And Twitter, of course, has had its own reports. There ...

  10. Travel And Transport Layoffs

    Feb 21, 2022 — The hyperloop transport company laid off over 100 employees as it shifts its focus from passenger travel to cargo transport . Virgin Hyperloop layoffs, pivot to freight kill the dream of tube …

  11. Travel Companies Detail Layoffs

    Travel Companies Detail Layoffs. By Mary Ann Mcnulty / November 05, 2008. ... The U.S. aviation industry announced the elimination of more than 36,000 jobs this year, according to the Air Transport Association. Most of those "went into effect in Q2," and all cuts were expected by Q4, which is when most airlines planned to reduce capacity, a ...

  12. Layoffs expected when pay support ends for US carriers

    Options for its 60,000 employees include "extended emergency time off", which provides health benefits, travel privileges and reduced compensation if workers take at least six months off.

  13. What We Know About the Railway Labor Deal

    What We Know About the Railroad Labor Deal. A tentative deal averted a strike by tens of thousands of rail workers, breaking an impasse in negotiations over sick time and working conditions ...

  14. Travel and Transport, Inc.

    Travel and Transport, Inc. Travel Arrangements Omaha, Nebraska 20,838 followers Travel and Transport is now Corporate Travel Management (CTM) North America.

  15. Working at Travel and Transport

    1001 to 5000 Employees. 1 Location. Type: Company - Private. Founded in 1946. Revenue: $25 to $100 million (USD) Travel Agencies. Competitors: Unknown. Travel and Transport is a full service travel management company headquartered in Omaha, NE. Our employees have exceptional travel backgrounds and are truly passionate about what they do at ...

  16. Air travel will suck this summer. Blame the airlines' shortsighted layoffs

    Money. Air travel will suck this summer. Blame the airlines' shortsighted layoffs. American, Delta, and United spent a year laying off workers. Now the airlines need them back. By Terry Nguyen ...

  17. Layoffs hit Travelport's commercial organization across all regions

    Share. Travel retail platform Travelport has laid off an undisclosed number of employees in its commercial organization. A company spokesperson said the reduction is across all regions but it is not a company-wide initiative and "it did not affect a material number of employees (percentage wise)." "Travelport is focused on driving revenue ...

  18. Layoffs Hit Travelport's Commercial Organization

    By Mitra Sorrells / April 01, 2024. Travel retail platform Travelport has laid off an undisclosed number of employees in its commercial organization. A company spokesperson said the reduction is across all regions but it is not a companywide initiative and "it did not affect a material number of employees (percentage wise)." "Travelport is ...

  19. How Much Does Travel and Transport Pay in 2024? (139 Salaries

    The average Travel and Transport hourly pay ranges from approximately $16 per hour (estimate) for a Retail Merchandiser to $81 per hour (estimate) for a Corporate Counsel. Travel and Transport employees rate the overall compensation and benefits package 3.8/5 stars.

  20. Travel and Transport Company Profile

    Travel and Transport has 5 employees across 17 locations. See insights on Travel and Transport including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. ... Travel and Transport is a full service travel management company headquartered in Omaha, NE. Our employees have exceptional travel ...

  21. Biden to require feds to take public transit, other 'green' options

    The federal government spends $2.8 billion on official travel annually, with employees taking 2.8 million flights and making 2.3 million car rentals.

  22. Corporate Travel Management

    Corporate Travel Management (CTM) is a global leader in business travel management services. We drive savings, efficiency and safety to businesses and their travelers all around the world. If you are looking for a tailored travel management solution, delivering customer service excellence, innovative travel technology and a demonstrable return on investment, then you've come to the right place.

  23. Employees turn owners at Travel & Transport

    Travel Weekly's Top 50 Travel Agencies 2000 put Travel and Transport's annual sales at $650 million. Employees previously owned 30% under an ESOP formed in 1991.