Ending Ground Handling Services For Airlines, Refocusing On Cargo And Fuel

One of the companies that provides ground handling services to multiple airlines at Los Angeles International Airport (KLAX) is cutting 830 jobs as it refocuses its business on cargo handling and fueling services.

Swissport said in statement released Tuesday that it was laying off the workers as it ends baggage handling, cabin cleaning, and other ramp services to passenger airlines. Swissport's clients include Air china, Air Canada, Emirates and Lufthansa, according to the Los Angeles Times. In the statement, Swissport USA COO Frank Mena said that the move was "part of a strategic review of the profitability of our global business portfolio.”

Airport officials and union leaders say that many of the workers idled by Swissport may be hired by other companies that will take up the slack at KLAX, at least on a temporary basis.

In discussions prior to the announcement, Swissport officials cited higher salaries that are mandated under the city's living wage ordinance. In Los Angeles. Employers with more than 26 employees were required to raise their minimum wage to $13.25 per hour in Los Angeles city and county.

Keith Wilschetz, the airport’s deputy executive director of operations and emergency management, told the paper that he does not know why Swissport was making the cuts, and he has not heard of any other airport contractors considering similar moves.

Under California state law, an employer with more than 75 full-time employees must give workers and the state 60 days notice of a mass layoff.

FMI: Source report