Sara Nelson, president of the Flight Crew Association, on how the government can best help workers in the airline industry.
Southwest Airlines no longer expects to prevent or pay thousands of workers by 2021, CEO Gary Kelly told employees on Monday.
Kelly’s announcement came just 24 hours after President Trump signed the $ 900 billion emergency relief package designed to pull in airlines $ 15 billion to keep all their employees on payroll by March 31.
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Given that, the airline does not foresee a ‘need’ for the drastic steps, Kelly said. Although, he warned that the airline was still “overcrowded” in many areas and called on employees to consider volunteering free time.
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The airline – who in his 49-year history has never fired a worker – warned just a few weeks ago that nearly 7,000 workers were in danger of losing their jobs as soon as March or April if their unions did not accept the wage cut of around 10%.
A Southwest Airlines flight attendant is preparing a flight to Orlando, Florida, for takeoff on May 24, 2020 at Kansas City International Airport in Kansas City, Mo. (AP Photo / Charlie Riedel)
Previously, both Suidwes and Delta were able to avoid the whole pandemic by convincing thousands of workers to buy out voluntarily or take early retirement, and in the case of Delta, contract licensing negotiations.
SOUTHERN AIRLINE LINE NOTICES NEARLY 7,000 EMPLOYEES WHO CAN BE PROSECUTED
“As I have been saying for months, this has always been our preferred plan, and it means we can stop the downward movement and pay cuts we have previously announced,” Kelly said in a comment to employees.
Because of this “important help”, Kelly said the airline “can pass a sigh of relief knowing that we will not be forced to follow the steps that are so strange to us all.”
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Airlines – which has been hit hard by the decline in travel demand since the onset of the pandemic – pleads with Congress for additional assistance after receiving funds earlier this year.
As the pandemic hit the road in March, airlines received first-round taxpayer aid – up to $ 25 billion to cover the payroll for six months and another $ 25 billion in low-interest loans. Some airlines have turned down government loans.
American and United Airlines, which together had 32,000 employees in October, said they would temporarily bring the workers back if the latest coronavirus virus relief package was signed.
AMERICAN, UNITED TO RETURN 32 000 SLEEPED EMPLOYEES AS PURCHASED PACKAGE SIGNED, DEFENDED, DELIVERED
Earlier this month, United chief executive Scott Kirby and president Brett Hart said in a memorandum to employees that the airline “intends to offer temporary work” to more than 13,000 employees who were harassed in October.
United confirmed to FOX Business that the airline is already bringing back its former employees and expects to send recall letters to its employees in early January.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| UAL | UNITED LIGHT LINES HLDG. | 43.74 | -0.18 | -0.41% |
| AAL | AMERICAN AIRLINES GROUP INC. | 15.86 | -0.20 | -1.25% |
“As you know, involuntary plans have always been a last resort for us and we have worked very hard over the summer – through cost savings, capital raising and partnerships with our unions – to make the number of people ultimately affected so small. if possible, ”Kirby said last week.
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Similarly, American Airlines CEO Doug Parker and President Robert Isom told employees in a memorandum that the airline would recall its nearly 19,000 employees in phases. After the team members are officially approved, they will recover their salaries and benefits retroactively until December 1st.
American also plans to resume flights to smaller cities that were dropped this fall soon after a federal requirement to maintain the flights expired.
The Associated Press contributed to this report.