United Airlines has decided to suspend its outsourcing programme – which involved the outsourcing of baggage-handling, check-in services and other customer service jobs at some airports – until at least the end of 2016.
This U-turn decision was made by new United CEO Oscar Munoz, who took over from old chief executive Jeff Simsek in September. The move has been described as a “charm offensive” in order to win over disgruntled employees and customers.
The original outsourcing plans, made earlier in 2015, were intended to cut $1 billion in costs over the next two years, and involved the planned outsourcing of up to 2,000 jobs. These plans were preceded by previous attempts to outsource ground staff in 2013 and 2014 across almost 20 airports.
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