New York, NY – There is an increase worldwide in the middle class and it’s expected to increase by 1.8 billion more by 2020 according to aviation financial analysts. Megacities will increase from 19 to 27 by 2025 and consumer buying power will multiply with them. But while the middle class is shrinking in North America; it’s growing in China, India, and Latin America. According to IAMAW Canadian Airline Coordinator, Carlos DaCosta, one of the major reasons for this offshore growth in the middle class is due to the outsourcing of work from North America, including the aviation sector.
“Analysts say we can expect outsourcing to increase sharply from 70 per cent in 2008 to 86 per cent by 2013,” said Da Costa, in his address to delegates at the IAMAW Transportation Conference this past week in New York City. “Maintenance Repair and Overhaul (MRO) service providers will also increase in size and complexity as many airlines start to focus on their core functions while leaving others to manage their other functions,” said Da Costa.
“Fuel is now the number one cost for airlines and they have little control over its price so Airlines are looking under other rocks for cost reductions,” explained DaCosta to the more than 300 delegates attending the six day conference. Outsourcing maintenance and overhaul work to emerging markets in Asia and Latin America is a mounting problem for our members. “Many of these MRO companies are fairly large and unorganized,” explained DaCosta. “The IAMAW will be looking at these with an eye on developing an organizing strategy for them so that we become the union of choice for aviation workers throughout North America.”