Southwest Airlines issues first furlough notices as talks with unions stall
Reuters
Published Nov 06, 2020 01:39PM ET
Updated Nov 06, 2020 06:50PM ET
By Tracy Rucinski
(Reuters) - Southwest Airlines (N:LUV) said on Friday it has sent notices of potential furloughs to 42 parts inventory workers after talks with one union group stalled over pay cuts the airline argues it needs from all employees to offset $1 billion in overstaffing costs.
The first furloughs at the 49-year-old company would take place in January unless the International Brotherhood of Teamsters agrees to a deal or Washington passes "a satisfactory" extension of a payroll support program for airlines, Southwest said.
An initial $25 billion in federal payroll support for airline workers expired in September, prompting tens of thousands of furloughs across the industry after lawmakers failed to agree another COVID-19 economic relief deal before the Nov. 3 U.S. election.
Southwest remains in talks over cost savings with representatives of other union groups, it said, and left the door open for negotiations to save the 42 jobs at risk among Teamsters members.
"This is not the result we hoped to achieve," Southwest Vice President of Labor Relations Russell McCrady said in an emailed statement.
The Teamsters did not immediately comment.
Unions represent about 83% of roughly 61,000 Southwest employees.
Meanwhile, Southwest's outsourcing of maintenance work to foreign contractors threatened to return to the fray in discussions with the union representing some 2,700 mechanics, after the two sides ended a 7-year contract impasse in 2019.
The Aircraft Mechanics Fraternal Association (AMFA) believes contract language protects members from furloughs as long as Southwest is outsourcing maintenance work, its national director Bret Oestreich said on Friday.
AMFA has asked Southwest to provide information on its outsourcing footprint and costs, while moving forward with discussions on possible cost-savings measures, outside of opening the collective bargaining agreement.
Southwest pilots have also pushed back on the company's proposal to cut employees' pay by 10% but remain in talks, as does the flight attendants' union.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.