Per media reports, JetBlue Airways Corporation (JBLU - Free Report) flight attendants expressed their interest in holding a union representation election after having felt exploited by the company.
The attendants look for an improvement in wages, the ability to defend themselves against unfair charges as well as take actions and voice opinion in case JetBlue merges with another airline.
JetBlue responded by saying that it respects its crew members’ right to consider a third-party proposal and hopes for a discussion on how to enhance their direct relationship so as to address the needs of its employees in a better manner.
JetBlue attendants have joined the Transport Workers Union (“TWU”) of America, which filed paperworks with the National Mediation Board to conduct an election, representing approximately 4,800 members of their workforce. The voting is expected in January with approval from the National Mediation Board and signatures collected from more than 50% of the flight attending staff.
Notably, JetBlue is no stranger to unionization issues. Per a Forbes report, 71% of its pilots voted to join the Air Line Pilots Association in 2014. However, a union election was not held as the TWU failed to secure the requisite number of signatures.
In another unionization case, Allegiant Travel Company (ALGT - Free Report) recently announced that it has reached a tentative agreement with TWU after a prolonged negotiation. However, tentative agreements do not necessarily mean that the deal will be operational. It will be only effective on ratification. In that case, the deal will result in significant pay raises for the flight attendants.
Zacks Rank & Key Picks
JetBlue carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the airline space are Gol Linhas Aereas Inteligentes S.A. (GOL - Free Report) and International Consolidated Airlines Group SA (ICAGY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Gol Linhas and International Consolidated Airlines have surged more than 200% and 46%, respectively, in a year.
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