Continuing with their already existing policy on outsourcing, United Continental Holdings Inc., which United Airlines, has recently announced that they are looking at vendors outside the US to outsource as many as 2000 jobs. This will include the 28 airports that they operate including the ones in Miami and Atlanta.
India is already a top destination for UA as they have existential contracts for many of their customer service jobs in the country. However, Philippines and other emerging BPO hubs may get consideration.
Just about 2 years back, UA was trying to lower its costs by turning to vendors at six U.S. airports and three in Canada, affecting nearly 500 jobs and in 2014 it outsourced about 635 jobs at 12 additional U.S. airports. But some 200 workers at three small airports in Hawaii voted to accept concessions to keep their jobs. Now, in its latest salvo, United is potentially targeting a far large number of workers and locations.
United Airlines is based out of Chicago and is the 2nd largest airline in the United States. Keeping some factors in mind, the firm also said that it is in active discussion with the unions on keeping some jobs in house. The statement also pointed out relocation possibilities for some employees in order to accommodate them with other US based jobs within UA.
Many domestic airports served by United, American Airlines Group Inc., and Delta Air Lines Inc., already use outsourced labor for baggage-handling and customer-service jobs. But American and Delta own their own divisions that bid on such work, while United has no such unit.
The list of cities being affected include Anchorage, Alaska; Hartford, Conn; Billings, Montana; Nashville, Tennessee; Boise, Idaho; Indianapolis, Jacksonville and Fort Myers, Florida; San Antonio and McAllen, Texas; Ontario, San Jose and Sacramento, California; Kansas City; Oklahoma City; Tulsa; Providence; Richmond and Norfolk; Virginia, Omaha; Nabraska, and Raleigh-Durham, N.C.; and Greensboro, S.C.