Thursday, February 2, 2012

Jour.4460 Blog #3: American Airlines to cut 13,000 jobs: What now?



When you think of 13,000 people losing their job, you automatically think of the worst. Well imagine if you were among one of those 13,000. On Wednesday, American Airlines parent AMR Corp said, “it will seek to cut 13,000 jobs". According to The Huffington Post, the job cuts would include 4,600 maintenance workers, 4,200 baggage handlers, 2,300 flight attendants, 1,400 management and support employees and 400 pilots.

So what does this mean? Well, it will affect everyone in a different way. The ones that will get hit the hardest are of course the families of the ones who will be unemployed. With the economy being in the shape that it is right now, losing your job is some people’s worst nightmare. Not having a job to support your family or yourself can be depressing. It is devastating to know that people will not be able to provide what their families need. Even basics could be hard to come by. 

Not only is it hurting the employee, but the company will also be affected as well. Will this mean fewer flights? What about higher ticket prices? The effects of this decision can branch out to harm thousands more. Companies who cut thousands of employees usually come under fire for obvious reasons. What would bring them to make such a crushing choice? 



On the other hand will this drastic cut actually help out the company? They sure think so. According to NBC News, “The airline hopes to boost revenue by increasing departures out of hubs in Dallas-Fort Worth, Chicago, Miami, Los Angeles and New York by 20 percent over the next five years.” We’ll see how that works out for them.

On the up side, I think it’s great that union representatives are fighting for this. Although job cuts probably wont be that negotiable, maybe another decision can be reached within the unions and American Airlines. Under the bankruptcy law, “the company must provide the unions financial information to evaluate its proposals, followed by good-faith negotiations to reach an agreement before seeking help from the courts.”

 If the job cuts aren’t enough, the employees that get to stay with American will probably end up working more hours and pay more for their healthcare with having no increase in their pay. So there really is no win-win situation. You either lose it all or you win some and lose some. Everyone has to make sacrifices, some are just worst than others.


With all of this craziness taking place, we can only hope for the best and see what the end results are.




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