Southwest Airlines Warns Of Possible Furloughs For Nearly 7,000 Employees
DALLAS (CBSDFW.COM/AP) - Dallas-based Southwest Airlines warned nearly 7,000 workers on Thursday that they could lose their jobs unless labor unions accept concessions to help the airline cope with a sharp drop in travel caused by the pandemic.
Southwest is operating far fewer flights, and it asked unions in October for help with "overstaffing costs" that it estimates will amount to more than $1 billion in 2021.
Southwest asked for pay cuts of around 10% in exchange for no furloughs through next year.
The airline's top labor-relations official, Russell McCrady, said Southwest's goal is to save every job. "However, due to a lack of meaningful progress in negotiations, we had to proceed with issuing notifications," he said. The advisories to employees, known as WARN notices, are legally required 60 days before large-scale layoffs or furloughs.
McCrady said the airline is willing to resume negotiations with unions.
The warnings went to 6,828 employees including more than 2,500 ground workers and 1,500 flight attendants represented by the Transport Workers Union and 1,221 pilots, who have their own union.
As of the end of September, Southwest had about 58,000 employees, including 11,000 on long-term leave.
"It's a sad day at Southwest Airlines, the love is over. We are disappointed. We're not surprised. But we're disappointed as we've been working many long days and nights at the negotiating table to come up with better cost saving solutions than this option," said Lyn Montgomery, President of TWU Local 556.
Southwest, the nation's fourth-biggest airline, boasts that it has never furloughed workers in its history dating back more than 50 years.
It encouraged thousands of workers to take buyouts or early retirement this year but avoided layoffs. Rivals American Airlines and United Airlines furloughed 32,000 workers between them in October.
Jon Weaks, president of the pilots' union, also called the furlough notices "a sad milestone" in Southwest history.
"While this development is not completely surprising, it is incredibly disappointing to our pilots and their families who are now dealing with the stress that arrives along with this notice," Weaks said in a video to his members.
The unions said they have proposed cost-cutting measures to Southwest, but management has rejected them and refused to offer another round of voluntary buyouts.
"Sending WARN Act notices either as a scare tactic or as an actual intent to furlough when other options available were not explored is about as sad as it gets," said Lyn Montgomery, president of the flight attendants' union.
Southwest received $3.2 billion in federal aid this spring as its share of the $25 billion allotted by Congress to help airlines cover their labor costs through September. Airlines are lobbying for more taxpayer help. A bipartisan proposal unveiled in Congress this week would give them another $17 billion.
Unions say they've contributed ideas how the airline can save money.
"Where employees work a four day workweek, instead of a five that we've proposed bidding an additional day off. All these proposals we feel would get them to this $70 million in savings and they don't seem interested," said Charles Cerf, President of TWU Local 555.
Passenger traffic on U.S. airlines is down about 60% from a year ago and is not expected to improve dramatically until a large percentage of Americans have been vaccinated against COVID-19.
The airline says a bill by Congress extending airlines relief or an agreement by its unions would prevent furloughs.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
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