An estimated 600 ground operations workers at Los Angeles International Airport could soon walk off the job over a labor dispute — a move that could create a major disruption at LAX and beyond.

Nicolas Fernandez, who represents employees with the International Association of Machinists and Aerospace Workers, said Monday that Swissport International plans to eliminate its cabinet-cleaning, ramp, mechanics and passenger-service departments, although its cargo and fueling departments will remain in operation. Swissport employs more than 1,000 people at LAX.

At issue are the severance packages the aviation services company has proposed. Fernandez says they are inadequate.

Swissport, he said, wants to pay $600 to employees who have been with the company for up to two years, $800 for workers who have logged two to five years, $1,000 to employees with five to eight years experience, $1,200 for those with eight to 15 years and $1,400 to workers who have been with Swissport for 15 or more years.

“That’s the entire package … and there are people who have been working with this company for 40 years!” he said. “I’m trying to keep them at the table. We’re trying to bargain in good faith.”

Swissport said it believes its severance “is fair and takes into account the contributions of our employees.” The company initially indicated it would eliminate the four divisions in October but more recently said it could be as early as August, according to Fernandez.

A counter-proposal

The union has issued a counter-proposal with higher severance payouts, but Swissport has yet to respond, Fernandez said.

Under that plan, workers with up to two years experience would receive $1,000, while those with two to five years would get $2,500. Others with five to eight years would receive $4,000, while employees with eight to 15 years would get $7,500, and workers with more than 15 years experience would receive $15,000.

“Our members are getting to the point that if we don’t hear back they may walk off the job,” Fernandez said. “That would create big problems, not only here in Los Angeles, but nationwide. If you’ve got 600 people walking out of work at LAX the entire nation will have a problem.”

Swissport serves 24 airlines at LAX, including Frontier, Aero Mexico, Air China, Lufthansa, Spirit Airlines and Virgin Atlantic Airways, according to the company’s website.

Fernandez said Swissport’s management has seen lots of turnover.

“Every other month they’ve been coming out with a new general manager,” he said. “They’ve changed five or six times over the past year. It doesn’t work out and they’re losing contracts because of that.”

A company statement

Swissport declined to discuss its management strategy or downsizing plan, although the company issued a statement:

“Swissport International decided to terminate its ground handling and transportation activities at LAX as part of a strategic review of the profitability of our global business portfolio,” the statement said. “Swissport will continue to offer air cargo handling and fueling services and further looks to grow the business. We know these are difficult times for our employees and we are focused on helping them transition to employment wherever possible with the entities that will be taking over the company’s ground handling services at the airport.”

Major disruption?

Thomas Anthony, director of the USC Aviation Safety and Security Program, said Swissport’s actions could have a definite effect on operations at LAX and beyond.

“It all depends on how much preparation and lead time there is,” he said. “If, as they say, they are working with their clients then the clients would have time to switch to another provider. But if people just walked off the job that could be tremendously disruptive.”

Swissport provides airport ground services for some 265 million passengers annually and handles about 4.7 million tons of air cargo at 133 warehouses worldwide. With a workforce of 68,000, Swissport is active at 315 airports in 50 countries across all five continents.