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United Airlines intends to outsource extensively

According to a Reuters report, United Airlines is searching for options with third parties in a cost cutting exercise that will possibly impact the jobs of around 2000 workers. The jobs under evaluation include baggage handling and gate and customer services for airports that are not hubs. Meanwhile Delta Airlines has assured that it won’t outsource to any of its stakeholder company, as reported earlier.

In 2013 United airline said it wanted to cut back on spending by $2bn per annum, but in 2014 it indicated to investors that its spend would be up by 1.4%.Most likely it will make up for it by reducing the numbers of employees working in the airline. The company (or its holding company at any rate) has also announced a deal to reduce staff in a further 12 American airports in the middle of last year. Hence, may be it won’t come as a big surprise to many of the workers involved nor their unions.

 The surprising factor in the Reuters report is the suggestion that the move is partly due to pressure from Delta- which itself has denied outsourcing plans in the near future.

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