SEIU United Service Workers West has released a new report that links the millions that airlines like Southwest Airlines receive in taxpayer money through California’s Statewide Travel Program (STP) and the company’s use of low-road, irresponsible contractors to perform many front-line passenger service and safety roles. The report, entitled “Unintended Consequences: How Airlines Use Taxpayer Money to Undermine Worker Standards in California,” found that Southwest, the current “preferred provider” of the STP program received more than $41 million from the program in 2017 alone.[1]
The report highlights the contradiction between that taxpayer largess and Southwest’s use of irresponsible contractors, including S.A.S. Services Group, which was recently awarded a contract by Southwest at LAX. Subcontracted workers employed by S.A.S. played a critical role in bringing in Southwest’s $2.5 billion in profit last year[2], but Southwest uses non-union contractors at multiple airports, and recently fired their union contractor at LAX.
Southwest’s contractor, the report explains, has been cited for nearly $1 million in wage theft from its employees at LAX in 2014[3], and settled another wage theft case for $450,000 for employees in San Diego in 2018.[4]
SEIU USWW has recently launched a petition to Southwest’s CEO Gary Kelly. The petition points out that Southwest consistently makes billions in profits[5]and that the airline has chosen a low-road contractor at LAX that has left many workers with inadequate and expensive healthcare and grueling workloads which create conditions that undermine high standards for worker and passenger safety.[6]
SEIU USWW members are calling on airlines like Southwest that benefit from public money to deliver the kinds of jobs that our communities need. That means at least $15 hour, health care and the right to form a union.
[1]http://www.seiu-usww.org/wp-content/uploads/2019/04/seiu-usww_stp_unintendedconsequences_brochure_final.pdf
[2]Southwest Airlines 10-K, 2018
[3]California Division of Labor Standards Enforcement, Office of State Labor Commissioner, Wage Citation #100076, 10/20/2014, Total Amount of $21,700 in civil penalties, $853,384.37 in wages and premium amount assessed, and $88,122.20 in liquidated damages. Total is $963,206.57.
[4]Notice of Entry of Final Approval Order and Judgement, Luis Encarnacion vs. SAS Services Group, Case # 37-2017-00026726-CU-OE-CTL, California Superior Court, County of San Diego December 14, 2018
[5]46thconsecutive year of profitability, http://investors.southwest.com/news-and-events/news-releases/2019/01-24-2019-113106440 This shows profits above $1 billion/year, since 2014: https://www.macrotrends.net/stocks/charts/LUV/southwest-airlines/net-income
[6]https://www.seiu-usww.org/southwest/
SEIU United Service Workers West has released a new reportthat links the millions that airlines like Southwest Airlines receive in taxpayer money through California’s Statewide Travel Program (STP) and the company’s use of low-road, irresponsible contractors to perform many front-line passenger service and safety roles. The report, entitled “Unintended Consequences: How Airlines Use Taxpayer Money to Undermine Worker Standards in California,” found that Southwest, the current “preferred provider” of the STP program received more than $41 million from the program in 2017 alone.[1]
The report highlights the contradiction between that taxpayer largess and Southwest’s use of irresponsible contractors, including S.A.S. Services Group, which was recently awarded a contract by Southwest at LAX. Subcontracted workers employed by S.A.S. played a critical role in bringing in Southwest’s $2.5 billion in profit last year[2], but Southwest uses non-union contractors at multiple airports, and recently fired their union contractor at LAX.
Southwest’s contractor, the report explains, has been cited for nearly $1 million in wage theft from its employees at LAX in 2014[3], and settled another wage theft case for $450,000 for employees in San Diego in 2018.[4]
SEIU USWW has recently launched a petition to Southwest’s CEO Gary Kelly. The petition points out that Southwest consistently makes billions in profits[5]and that the airline has chosen a low-road contractor at LAX that has left many workers with inadequate and expensive healthcare and grueling workloads which create conditions that undermine high standards for worker and passenger safety.[6]
SEIU USWW members are calling on airlines like Southwest that benefit from public money to deliver the kinds of jobs that our communities need. That means at least $15 hour, health care and the right to form a union.
[1]http://www.seiu-usww.org/wp-content/uploads/2019/04/seiu-usww_stp_unintendedconsequences_brochure_final.pdf
[2]Southwest Airlines 10-K, 2018
[3]California Division of Labor Standards Enforcement, Office of State Labor Commissioner, Wage Citation #100076, 10/20/2014, Total Amount of $21,700 in civil penalties, $853,384.37 in wages and premium amount assessed, and $88,122.20 in liquidated damages. Total is $963,206.57.
[4]Notice of Entry of Final Approval Order and Judgement, Luis Encarnacion vs. SAS Services Group, Case # 37-2017-00026726-CU-OE-CTL, California Superior Court, County of San Diego December 14, 2018
[5]46thconsecutive year of profitability, http://investors.southwest.com/news-and-events/news-releases/2019/01-24-2019-113106440 This shows profits above $1 billion/year, since 2014: https://www.macrotrends.net/stocks/charts/LUV/southwest-airlines/net-income
[6]https://www.seiu-usww.org/southwest/