Our Airport

Mega merger could mean inferior customer service for travelers and poverty wages for workers

Portland, Ore. — Dirty tray tables. Lost luggage. Poverty wages. These are just some of the problems Virgin America (NASDAQ: VA) customers and workers may experience if the airline’s shareholders approve its acquisition by Alaska Air Group (NYSE: ALK). Virgin America shareholders will vote on the proposed deal tomorrow in a special online meeting.

Since the merger was announced in April, Virgin America customers have voiced concern that the merger will mean a downgraded flying experience and a loss of the best-in-class features they enjoy.[i] Observers are raising concerns that may make shareholders think twice about the deal, due to potential downgrades for Virgin customers and workers.

The top five concerns:

1.     Basic hygiene: In February 2016, workers subcontracted by Alaska to clean Alaska Airlines planes at Portland International Airport received a memo directing them to skip cleaning tray tables in the main cabin on many flights[ii]. Alaska initiated this “no-clean” policy in spite of evidence that it could allow harmful microbes like E. Coli, influenza and norovirus to thrive.[iii] [iv]

2.     “Blah airlines” customer experience: Virgin has pioneered innovative customer experiences like touch-screen food and drink ordering, entertainment screens for every passenger, and Netflix streaming.[v] [vi] As Alaska continues to grow, some industry observers have noticed a declining customer experience that can include rusting tray tables, “worn and frumpy” seats, and an airline magazine in place of a seat-back screen.[vii]

3.     Lost bags: From August 2014 to August 2015, reports of mishandled baggage on Alaska increased by 58 percent. No luggage was safe—the airline even lost CEO Bradley Tilden’s bag, Tilden admitted.[viii]

4.     Unsafe working conditions: Earlier this year and in 2013, Alaska Airlines and its contractor Menzies Aviation were cited by the State of Washington for health and safety violations related to unsafe working conditions.[ix] (The employers have appealed.) The investigations in 2013 revealed that Alaska and its contractor failed to protect staff from exposure to faulty equipment, corrosive cleaning chemicals, caustic jet fuel, blood-borne pathogens, and body fluids including vomit, urine, feces and blood.[x]

5.     Poverty wages: In Portland, Oregon, an Alaska Airlines hub, subcontracted Alaska workers, including ramp agents, baggage handlers, fuelers, cabin cleaners and janitors, make poverty wages as low as the minimum wage of $9.75 an hour. The average wage for these workers is $11.36 an hour, or $23,629 per year.[xi] A recent report from the University of Washington estimated it would cost Alaska $2.25 million—or 0.27 percent of the company’s reported total net income in 2015—to increase hourly wages to $15 for non-supervisory subcontracted employees at Portland International Airport (PDX). [xii] At Seattle-Tacoma International Airport, Alaska’s main hub, the airline has sued multiple times to avoid paying workers the voter-approved minimum wage of $15.24 an hour. State courts ruled against Alaska, finding that the wage law was legal and applied to airport workers.[xiii].

“I see shareholders cashing out on this deal, but I’m still struggling every day to get by,” said Tina Cummins, a cabin cleaner and subcontracted worker for Menzies Aviation. “After nine years on the job, I'm still making just $12 an hour and sometimes I feel unsafe on the job. I hope Alaska uses this merger to invest in the people on the ground and the customers we serve, but it isn’t clear that they have our best interests in mind.”

“While a merger could lead to even lower workplace standards, we know that increasing pay for workers produces widespread economic benefits,” said Garrett Strain, author of the University of Washington report on the economic impacts of wages at Portland’s airport. “If Alaska were to increase wages for outsourced workers, it could boost local spending in Portland by more than $7 million and create more than 80 new jobs for the regional economy.”

SEIU Local 49 represents more than 11,000 building service and health care workers, including workers at Portland International Airport. The Service Employees International Union is the nation’s largest property service union in the country.

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[ii] “Recent Memo to PDX Workers Who Clean Alaska Airline Planes.” Facebook. Our Airport, March 16, 2016. https://www.facebook.com/ourairport/photos/a.348604211966707.1073741828.347860105374451/558039941023132/?type=3&theater.

[iii] DiSalvo, David. “Study: Airplane Tray Tables Carry Much More Than Your Soda And Pretzels.” Forbes, May 20, 2014. http://www.forbes.com/sites/daviddisalvo/2014/05/20/study-airplane-tray-tables-carry-much-more-than-your-soda-and-pretzels/

[iv] Bartiromo, Michael. “Protect Yourself From Germs on Airplanes.” FOX News Magazine, July 5, 2011. http://magazine.foxnews.com/food-wellness/protect-yourself-germs-airplanes

[v] Krupnick, Matt. “Virgin America Fans Ask if Alaska Airlines Takeover Will Mean Loss of Cool.” New York Times, April 11, 2016. http://www.nytimes.com/2016/04/12/business/virgin-america-fansaskif-alaska-airlines-takeover-will-mean-loss-ofcool.html

[vi] Sanati, Cyrus. “Virgin America Can Help Alaska Airlines Up its Game on Several Fronts.” Fortune, April 5, 2016. http://fortune.com/2016/04/05/virgin-america-can-help-alaska-airlines-up-its-game-on-several-fronts/

[vii] Robinson, Melia. “Here's what it's like to fly on Alaska Airlines, which is buying Virgin America.” Tech Insider, April 24, 2016. http://www.techinsider.io/alaska-airlines-versus-virgin-america-2016-4

[viii] Castrodale, Jelisa. “Alaska Airlines did not have the best month for keeping track of passengers' luggage.” USA Today, October 28, 2015. https://usattravel.wordpress.com/2015/10/28/alaska-airlines-did-not-have-the-best-month-for-keeping-track-of-passengers-luggage/

[ix] Wilhelm, Steve. “Alaska Airlines, baggage-handler Menzies fined by labor regulators.” Puget Sound Business Journal, March 8, 2016.

[x] “SEIU: Alaska Airlines, contractor Menzies Aviation cited for failing to maintain safe workplace at Sea-Tac Airport.” PR Newswire, March 7, 2016. http://www.prnewswire.com/news-releases/seiu-alaska-airlines-contractor-menzies-aviation-cited-for-failing-to-maintain-safe-workplace-at-sea-tac-airport-300231799.html

[xi] Strain, Garrett. “Poverty Doesn’t Fly.” Harry Bridges Center for Labor Studies, University of Washington, June 2016, p. 19. http://depts.washington.edu/pcls/documents/StrainPDX_Poverty_Doesnt_Fly_June2016-c5.pdf  

[xii] Strain, Garrett. “Poverty Doesn’t Fly.” Harry Bridges Center for Labor Studies, University of Washington, June 2016. http://depts.washington.edu/pcls/documents/StrainPDX_Poverty_Doesnt_Fly_June2016-c5.pdf  

Airport Workers Demand $15 an hour and Union

Chanting “Show Me $15!” and “We Work, We Sweat, Put $15 on that Check!”, outsourced PDX workers gathered last weekend and fully adopted a demand for a $15 an hour minimum wage at PDX.  They also developed a strategy to demand union organizing rights and better working conditions from airlines and their contractors in the coming months.  

The Port of Portland Commission recently voted in favor of a “PDX Workplace Initiative” at Portland International Airport (PDX) that will help workers fighting for good jobs. The policy addresses PDX workers’ concerns around security, safety, equipment problems and service quality.

The announcement marks an important victory for subcontracted workers at PDX who make PDX “America’s best airport” and who have been organizing their union with SEIU Local 49 since 2014.

“By standing together, we’ve been able to get a fair minimum standards policy passed at our airport, and today’s vote means that our voices have been heard,” said Tina Cummins, a cabin cleaner at PDX. “It’s the right thing to do for our passengers, our community and those who work hard to make our airport number one. We hope the Port will continue to listen to workers on the ground and hold the airlines — who do business here — accountable for making sure jobs at our airport are good jobs.”

The Port of Portland’s policy follows the lead of other airports, including Los Angeles International Airport (LAX) and San Francisco International Airport (SFO),that have implemented minimum standards. However, LAX’s and SFO’s policies also include wage and benefits standards and stronger standards for employee retention and labor harmony.  

Though the policy falls short in terms of outlining fair wages and affordable healthcare, it does mark an important shift, demonstrating the power workers have when they stand together. The “workplace initiative” creates expectations for safety, training, and equipment and provides additional protection for workers who speak up about problems on the job. The passing of the policy is an important step forward as PDX worker continue their efforts to form their union for good jobs that include living wages, healthcare, and respect on the job.

The Oregon Occupational Safety and Health Division (Oregon OSHA) recently cited Prospect Airport Services – a service contractor that operates at Portland International Airport – for ‘serious’ workplace health and safety violations. The citations called out everything from lack of protective equipment, to exposure to electrical hazards and failure to comply with state law safety committee requirements.

After attempts to address issues with the employer, Prospect employees came together and filed health & safety complaints against their employer.

“If PDX is really going to be ‘America’s Best Airport,’ safety needs to be priority number one,” said Clarissa Shields, a cabin cleaner at PDX. “It’s unfortunate it took a state citation for Prospect to take action, but this decision will lead to safer conditions for both passengers and the workers who keep our airport running.”

The formal complaint that workers submitted to the Oregon Occupational Safety and Health Division in March detailed troubling worksite conditions that resulted in multiple citations, for: 

Lack of appropriate Personal Protective Equipment—gloves, eye and face protection—while cleaning toilets and to prevent exposure to hazardous chemicals 

Inadequate seat belts in vans used to transport workers between planes 

Electrical hazards in the employee break room 

Non-compliance with Oregon’s safety committee rules 

Lack of adequate access to toilet facilities 

“It is for reasons like these that workers across PDX airport are coming together to form our union. We want contractors operating at our airport not only to provide a safe working environment, but provide living wage jobs that our community can be proud of,” said Heather Pavlich, a Prospect cabin cleaner.

Airport workers’ voices were heard loud and clear recently during a community rally at PDX.  The rally brought together community supporters from far and wide to demand the airport taking responsibility for putting in place a meaningful set of minimum standards.

“It was amazing to see so many for the community join us in making sure that our voices are being heard. I absolutely love this airport and have immense pride in the work I do. Good, safe airports start with us and I now hope that PDX decision makers do the right thing to keep our airport number one,” said Nick Ashton, a bag runner at PDX.

For months, Airport workers at PDX have asked the Port of Portland to set minimum standards for good jobs at our airport.  Faced with inaction from Port officials, Airport workers recently adopted a set of meaningful standards to make sure that PDX is a healthy and safe airport for both passengers and workers..

On Wednesday, January 28th, airport workers held a meeting to discuss these standards. Then together, workers walked to the Port of Portland Office to make sure the Port knew just what these minimum standards should include.

“The Port keeps telling us that they have to listen to everyone and have told us to go talk to our managers about our concerns. We’ve been trying to do exactly this for years.  It is time for the Port to step up and work with us,” said Matthew Johnson a fueler at PDX.

A recent report by the New York Committee for Occupational Safety and Health (NYCOSH) found that hazardous and unsafe working conditions are pervasive in contracted out ground operations. Despite these conditions having known remedies and being preventable, ground crew passenger serviceworkers continue to be at unneccessary risk of injury, health, harm or death and may also put travelers at risk. At PDX, AN SEIU LOCAL 49  non-scientific survey of contracted workers found similar risks:  41.2% of workers report exposure to hazardous materials, 46% feel at risk of hurting themselves or others due to unsafe lifting, and 68.4% of workers felt at risk for repetitive motion injuries.