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Southwest Airlines ESG performance: LUV blames flight disruptions on union mechanics, exacerbating existing labor tension

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truvalue
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risk-management
(Eliot Caroom) #1

LUV blames flight disruptions on union mechanics, exacerbating existing labor tension

Over the last month, Southwest’s timely Pulse score fell 34%, driven by a labor controversy (detected by Truvalue’s Spotlight events) involving the company’s mechanics union, Aircraft Mechanics Fraternal Association (AMFA).

In this research brief, we discuss:

  • Escalating labor tensions, which stem from Southwest’s desire to outsource more maintenance work.
  • Accident and safety management and how extensive outsourcing raises concerns on work quality.
  • Short-term margin pressure if Southwest cuts maintenance outsourcing to levels in-line with peers.

Click here to access the research brief now.

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