News

Employee Furlough

Southwest Airlines To Recall More Than 2,700 Flight Attendants From Leave

Reuters | Equities.com |

Southwest Airlines said on Thursday it is recalling over 2,700 flight attendants from leave to support its summer schedule, ending a voluntary furlough program introduced during the coronavirus pandemic as travel demand waned.

As more Americans become vaccinated, Southwest is among U.S. airlines signaling a recovery and trying to prepare for pent-up demand for domestic leisure travel.


Airlines Drop Plans To Furlough Employees After COVID-19 Relief Bill Passes

Kimberly Redmond | Equities.com |

Major US airlines dropped plans to furlough thousands of employees on Wednesday after the House passed its $1.9 trillion COVID-19 economic relief package that included an extension of the payroll support program.

As part of the latest federal stimulus funding, $14 billion will go to airlines to cover employee pay and benefits for an estimated 27,000 workers through the end of September 2021.


General Motors To Furlough Workers in Brazil Plant for 20 Days

Reuters | Equities.com |

General Motors Co said on Friday it would furlough all workers at one of its Brazil plants for 20 days in March for maintenance and updating of factory lines, leading to a suspension in production.

The plant, in Gravatai in the state of Rio Grande do Sul, produces the Chevrolet Onix compact car, which has been Brazil’s best selling car for several years in a row.


American Airlines CEO Parker Warns of Additional Employee Furloughs

Reuters | Equities.com |

American Airlines workers should brace for another round of furlough warnings as the airline expects to remain overstaffed on April 1, when U.S. aid for industry workers expires, Chief Executive Doug Parker said.

American is among U.S. airlines that received money from a $15 billion payroll support package in December to protect workers’ jobs and salaries through March, when the industry had hoped that pandemic-hit demand would have recovered with vaccine rollouts.


American Airlines Begins Phased Return of Furloughed Workers

Reuters | Equities.com |

American Airlines is beginning the phased return of furloughed workers after the U.S. Congress passed a pandemic aid package with $15 billion in payroll support for airlines, its executives said in a staff memo on Tuesday.

“While pay and benefits will be restored right away, people will be asked to return to the operation in phases,” Chief Executive Doug Parker and President Robert Isom said in the memo, released by American.

Air passenger traffic is down by about 70% versus a year ago as the coronavirus pandemic continues to wreak havoc on the travel industry. U.S. airlines furloughed tens of thousands of employees when an initial $25 billion in federal payroll support that banned job cuts expired in October.


Southwest Airlines Warns Employees That 6,828 Jobs Are at Risk of Being Furloughed

Equities Staff | Equities.com |

Southwest sent notices Thursday to employees that 6,828 jobs are at risk as the airline continues to negotiate with its labor unions on how to reduce costs. The new warnings mean that up to 13% of the workforce could be cut in the first quarter of 2021, according to Bloomberg News, which first reported the potential furloughs.

The airline has never had involuntary layoffs in its 49 years of operations, but it now faces a worfforce that is 20% larger than it requires given the COVID-19-related dropoff in travel demand.


Delta Air Lines Pilots Vote To Take Pay Cuts in Deal That Avoids Furloughs

Reuters | Equities.com |

Delta Air Lines Inc pilots voted in favor of a deal that avoids furloughs through Jan. 1, 2022 in exchange for pay cuts, a union representing the pilots said on Wednesday.

The 1,713 Delta pilots, who were expected to be furloughed on Nov. 28, will now receive a partial pay of 30 hours a month along with medical benefits and vacation accrual, while they stay off their jobs.

“I don’t think there is any better way to welcome in the Thanksgiving season than with the achievement of protecting all our pilots from furlough,” Delta’s head of flight operations John Laughter said in a memo addressed to employees.


Disneyland Furloughs Additional Workers; Reopening Date Still Unknown

Reuters | Equities.com |

Walt Disney Co said on Monday it was furloughing additional workers from its Disneyland theme park in Southern California, because it still does not know when the state will allow it to reopen because of the coronavirus pandemic.

The number of furloughs, which include executive, salaried and hourly workers, was not known. It comes on top of the 28,000 employees who were laid off in September, mostly across Disney’s U.S. theme parks, in California and Florida.


Teamsters Union Says It Remains Open to Cost Savings Discussions With Southwest Airlines

Reuters | Equities.com |

The International Brotherhood of Teamsters remains open to cost-savings talks with Southwest Airlines, a spokeswoman said on Monday following news last week that the airline had sent notices of potential furloughs to 42 material specialists represented by the union.

Southwest said on Friday it had sent the warnings of furloughs, which would be the first in the company’s history, because the union was discontinuing all cost-savings negotiations for its material specialists.


Mnuchin Urges Airlines To Delay Furloughs If Broad Coronavirus Aid Package in Sight

Reuters | Equities.com |

Treasury Secretary Steven Mnuchin urged U.S. airlines to delay tens of thousands of furloughs set to begin Thursday if a bipartisan deal on a broad coronavirus relief package was in sight.

Mnuchin also told CNBC that he did not think a standalone measure to avert airline layoffs was likely and planned to talk to chief executives of airlines later on Wednesday about ongoing talks with House Speaker Nancy Pelosi to reach a deal.


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