United Airlines employee files class action lawsuit over unpaid days off policy
Reuters
Published May 13, 2020 07:45PM ET
Updated May 14, 2020 12:10AM ET
(Reuters) - A United Airlines Holdings (NASDAQ:UAL) Inc non-union employee filed a class action lawsuit on Wednesday alleging that a requirement that management and administration employees take 20 unpaid days off breaches the terms of federal payroll aid.
Chicago-based United is among the U.S. airlines that have accepted government payroll support, which is conditional on the companies not cutting jobs or pay rates before Sept. 30 as the sector weathers a sharp downturn in travel demand due to the coronavirus pandemic.
According to the lawsuit, two weeks after United signed the agreement to receive paycheck protection funds, it told domestic management and administration employees that they would be required to take 20 unpaid days off, between May 16 and Sept. 30.
"United's breach harms the agreement's intended beneficiaries: United employees," Kenneth England, who works as a shift manager for United at Chicago O'Hare International Airport, said in the complaint.
The lawsuit, filed in the Northern District of Illinois, said United employees face a substantial reduction in pay as a result of the policy.
"This lawsuit is without merit, as we continue to employ 100% of our workforce," United said in a statement.
The airline said it is taking cost-cutting measures now to offset an unprecedented drop in travel demand and help it "preserve as much financial flexibility now so we can not only survive this crisis, but thrive once it is behind us."
United, which is due to receive roughly $5 billion in payroll support under the CARES Act, has already said that it plans to cut at least 3,400 management and administrative positions in October.
It said "tens of thousands of United employees" have voluntarily agreed to temporary unpaid leave.
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.