United Continental holds airport job cuts to ease labor tension

In a bid to ease the mounting tension emerging from workers, United Continental Holdings Inc has suspended the outsourcing of jobs at the airport. The workers of United Continental expressed their concerns about measures of the company for job cuts. United already slashed 1,100 jobs early this year citing reasons for cost control. Since then, it's been involved in hiring outsourcing staff as part of cutting down costs and existing regular employees. The airline has assured employees that there wouldn't be outsourcing until 2017.

The Chicago-based world's second largest airline United Holdings Inc (United Airlines) was hiring outsourcing staff to replace the existing employees. After the workers unions' protests, yielding to labor tensions, the company has decided to put it on hold.

Jon Roitman, senior Vice-President for airport operations at United Continental Holdings Inc, said the company has decided to hold it off until the union contracts become eligible for negotiation. He said the change has come into force with immediate effect.

The new Chief Executive Officer Oscar Munoz has drawn a plan for outsourcing as part of improving labor relations and customer experience at United Continental Holdings Inc. Munoz has been replaced by Brett Hart, who is now an acting CEO. Munoz is recovering from heart attack.

In a message addressing to employees, Roitman said: "We fully understand how important this is and while it's impossible to know what the airline environment will be like in 3 to 5 years, we can take steps today to provide you with more job security and reduce uncertainty."

United Airlines has also assured its workers that it wouldn't outsource jobs in baggage handling or customer service until 2017. The airline's promise is believed to ease increasing tensions among the employees. It had already cut jobs to the tune of 1,150 in February. Since then, the unrest has been building up among employees.

After becoming CEO at the airline, Oscar Munoz had sought feedback from employees on how to enhance the efficiency of the company. However, employees are still uncertain about the validity of the moratorium, which is believed to be time-bounded. United Airlines, in its latest message to employees, clarified that "it's impossible to know what the airline environment will be in three to five years." This statement is further raising many questions among employees.

United Continental Holdings Inc is entitled to use outsourcing staff in front-line jobs at 16 airports. This also includes workers providing de-icing and United Express ground services at non-hub facilities. United Airlines didn't furnish any information on how many employees would be affected by the decision.