As United weighs outsourcing catering, US lawmakers demand new curbs on federal aid

A group of US lawmakers is demanding that airlines refrain from outsourcing jobs if they want to be eligible for a third round of federal payroll aid, after learning that United Airlines has sought bids to outsource catering work at five airports. Around two dozen members of US Congress made the request to Treasury Secretary Janet Yellen, according to letters released by Unite Here, the union representing more than 2,500 workers whose jobs are at risk under United’s proposal. Chicago-based United has received $7.7b in two COVID-19 relief deals, known as payroll support programs (PSP), to help the airline industry weather the pandemic and protect jobs. United stands to receive another $2.8 billion under a third package set to run through Sept. 30. “We respectfully request that any new PSP payments to United Airlines and other carriers make clear that any outsourcing of jobs while receiving PSP payments would violate the terms of the program,” seven senators wrote in a May 4 letter to Yellen, who has authority over the terms of the aid. Treasury did not immediately comment on the letter.<br/>