United’s Labor Practices Less ‘Friendly’ Than Their Skies
Former Labor Secretary Robert Reich reports that United Airlines is planning to outsource 630 gate agent jobs at twelve airports. Employees who had been earning $50,000 per year will be replaced by people paid between $9.50 to $12.00 per hour while CEO Jeff Smisek receives $8.1 million.
Click here for reuse options!United Airlines reports it’s outsourcing 630 gate agent jobs at 12 airports to companies paying near-poverty level wages. Employees who have been with the company for years, earning middle-class wages of $50,000 a year, will be replaced by people paid between $9.50 and $12 per hour. United says it must do this to cut costs and raise its profits relative to other airlines. But United CEO Jeff Smisek gave himself $8.1 million this year. If he cut his salary just $2 million (in line with the CEO of the more successful Southwest Airlines, who gets $4 million), United would save about as much as it will by cutting the pay of those 630 employees.
The problem in America isn’t that typical workers are paid more than they’re “worth” in the market. It’s that they have no bargaining power, while too many CEOs and other top executives have the power to pay themselves almost whatever they want. How do redress this power imbalance? Some call for stronger unions and greater shareholder say over CEO pay, but I’m increasingly of the view we have to change the organization of the corporation so that it has to respond to all stakeholders — not just its shareholders but also its workers and affected communities. What’s your view?
Copyright 2014 Liberaland
By: Dave
Dave is the webmaster of StrangerAmerica.com, a website devoted to the greatness that is Dick Cheney.
He is also the creator of RonnieReagan.com, a site devoted to a man considered by some to have been one of the better B-grade actors to portray a U.S. president.
You will find the complete writings of Dave at LookAmerica.com, including his quest for the perfect meatball and his encounters with Pat the Nazi and the Psycho Dentist.
14 responses to United’s Labor Practices Less ‘Friendly’ Than Their Skies
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Esteban Rey July 24th, 2014 at 16:36
That’s why they pay him the big bucks. He’s sooo smart.
chilly1952 July 24th, 2014 at 17:02
And he works 160 times harder then the gate agents.
Esteban Rey July 24th, 2014 at 16:36
That’s why they pay him the big bucks. He’s sooo smart.
chilly1952 July 24th, 2014 at 17:02
And he works 160 times harder then the gate agents.
mea_mark July 24th, 2014 at 16:40
We should be boycotting companies where the compensation is top heavy. Those companies and their wealthy CEO’s are crippling the economy and hurting the middle class. It is our own fault, we let this happen by continuing to use these companies. If the consumers demanded that the employees who actually do the work were compensated better, we would all be better off. Those that make less than those at the top spend what they earn helping the economy. Those that make way more than they need pull money out of the economy damaging it for all. We need to be better consumers and not support unfair pay practices and cripple these companies.
mea_mark July 24th, 2014 at 16:40
We should be boycotting companies where the compensation is top heavy. Those companies and their wealthy CEO’s are crippling the economy and hurting the middle class. It is our own fault, we let this happen by continuing to use these companies. If the consumers demanded that the employees who actually do the work were compensated better, we would all be better off. Those that make less than those at the top spend what they earn helping the economy. Those that make way more than they need pull money out of the economy damaging it for all. We need to be better consumers and not support unfair pay practices and cripple these companies.
Abby Normal July 24th, 2014 at 16:56
People like United CEO Jeff Smisek won’t be satisfied until they drive what’s left of the middle class out of existence. Who do they think will be buying their products when 90% of Americans are reduced to $10 an hour?
mea_mark July 24th, 2014 at 17:07
The other CEO’s of course.
Abby Normal July 24th, 2014 at 16:56
People like United CEO Jeff Smisek won’t be satisfied until they drive what’s left of the middle class out of existence. Who do they think will be buying their products when 90% of Americans are reduced to $10 an hour?
mea_mark July 24th, 2014 at 17:07
The other CEO’s of course.
Jeff Allen July 24th, 2014 at 17:37
CEO’s have become like overpriced athletes. They know that longevity at that level is scarce so they grab what they can and include huge severance and golden parachutes in their contracts. I am in favor of public pressure as opposed to regulation when it comes to messing with peoples wages. If folks had the temerity to speak with their feet, it might get the attention of shareholders and boards.
Jeff Allen July 24th, 2014 at 17:37
CEO’s have become like overpriced athletes. They know that longevity at that level is scarce so they grab what they can and include huge severance and golden parachutes in their contracts. I am in favor of public pressure as opposed to regulation when it comes to messing with peoples wages. If folks had the temerity to speak with their feet, it might get the attention of shareholders and boards.
peacedreamer July 27th, 2014 at 13:50
United Airlines / Continental once provided the safest, most courteous and on time service in the US.I used their services for over 30 years. No longer true as corporate greed has overtaken these. They not only disregard the value of their employees, they disregard service to their customers. They also plan to layoff at least 60 pilots.
peacedreamer July 27th, 2014 at 13:50
United Airlines / Continental once provided the safest, most courteous and on time service in the US.I used their services for over 30 years. No longer true as corporate greed has overtaken these. They not only disregard the value of their employees, they disregard service to their customers. They also plan to layoff at least 60 pilots.