August 22, 2006 - United Airlines announced it will close its reservation center located near Dulles Airport in Virginia around October 16, 2006. The closing will affect more than 450 workers.
“Reservation center closings are becoming too common place as work is shipped across the globe,” said General Vice President Robert Roach, Jr. “The Dulles Center closing is different, however, because United used the bankruptcy process to reduce wages so low that they can’t attract a reliable workforce.”
UAL officials cited a 40% turnover rate as a major factor in the center’s closing. IAM members have contractual protections that allow them to bid to other reservation or airport locations based upon their seniority.
“This is a problem United created for itself and will plague the airline for years,” said Roach. “United is competing with the fast food industry for new workers, and the airline is losing.”
