Sara Nelson, President of the Association of Flight Attendants, on how the government can best assist workers in the civil aviation industry.
Southwest Airlines does not foresee any more leave or cut wages for thousands of workers in 2021, CEO Gary Kelly told employees on Monday.
Kelly’s announcement came just 24 hours after President Trump signed the $ 900 billion aid package that is scheduled to inject $ 15 billion into airlines to keep all his employees on payroll until March 31.
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Given that, the airline does not “anticipate the need” to take such drastic measures, said Kelly. However, he cautioned that the airline is still understaffed “in many areas” and called on employees to consider a voluntary license.
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The airline – who never fired a worker in his 49 years of history – warned just a few weeks ago that almost 7,000 workers were at risk of losing their jobs as early as March or April if their unions did not accept wage cuts of around 10%.
A Southwest Airlines flight attendant prepares a plane bound for Orlando, Florida, to take off on May 24, 2020 at Kansas City International Airport in Kansas City, Missouri (AP Photo / Charlie Riedel)
Before that, Southwest and Delta were able to avoid licenses during the pandemic by convincing thousands of workers to make voluntary purchases or early retirement and, in Delta’s case, negotiate contract awards with pilots.
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“As I’ve been saying for months, this has always been our favorite plan and it means that we can stop the move towards licenses and pay cuts that we previously announced,” Kelly said in a note to employees.
Because of this “crucial aid”, Kelly said the airline “can breathe a sigh of relief, knowing that we will not be forced to move forward with those steps that are so foreign to all of us”.
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Airlines – who have been heavily affected by the drop in travel demand since the pandemic began – have been begging Congress for additional help after receiving funds earlier this year.
In March, when the pandemic caused a free fall in travel, airlines received the first round of taxpayer assistance – up to $ 25 billion to cover payrolls for six months and another $ 25 billion in low-interest loans. . Some airlines refused government loans.
American and United Airlines, which together released 32,000 employees in October, said they would bring these workers back temporarily if the latest coronavirus aid package were signed.
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Earlier this month, United CEO Scott Kirby and President Brett Hart said in a memo to employees that the airline “intends to offer temporary employment” to more than 13,000 employees who were laid off in October.
United confirmed to FOX Business that the airline is already working to bring back its dismissed employees and expects to send recall letters to its employees in early January.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HLDG. | 43.74 | -0.18 | -0.41% |
| AAL | AMERICAN AIRLINES GROUP INC. | 15.86 | -0.20 | -1.25% |
“As you know, involuntary leave has always been a last resort for us and we have worked hard over the summer – through cost cutting, raising capital and partnering with our unions – to reduce the number of people affected as possible,” said Kirby last week.
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Likewise, American Airlines CEO Doug Parker and President Robert Isom said in a memo to employees that the airline will begin calling back its nearly 19,000 phased licensed employees. After official approval, all licensed team members will have salaries and benefits restored retroactively to December 1st.
American also plans to restore flights to smaller cities that were suspended this fall soon after a federal requirement to maintain those flights has expired.
The Associated Press contributed to this report.