Southwest Airlines issues notices of furloughs for first time in 49-year existence

In this news, we discuss the Southwest Airlines issues notices of furloughs for first time in 49-year existence.

(Reuters) – Southwest Airlines LUV.N said on Friday it sent notices of potential leave to 42 parts inventory workers after talks with a labor group resulted in pay cuts the airline says it has need all employees to offset $ 1 billion in overstaffing costs.

The holidays, the first in the company’s 49-year low-cost history, would take place in January unless the International Brotherhood of Teamsters agrees to a deal or Washington passes a “satisfactory extension” of a training program. payroll support for airlines, Southwest said.

An initial $ 25 billion federal aid for airline workers expired in September, leading to tens of thousands of leaves in the industry after lawmakers failed to agree on another deal. COVID-19 economic relief ahead of the November 3 US election.

Southwest remains in talks over cost savings with representatives of other labor groups, he said, and has left the door open to negotiations to save the 42 risky jobs among Teamsters members.

“This is not the result we were hoping to get,” Southwest Vice President of Labor Relations Russell McCrady said in an emailed statement.

The Teamsters did not immediately comment.

Meanwhile, Southwest’s outsourcing of maintenance work to overseas contractors has threatened to return to the fray in talks with the union representing some 2,700 mechanics, after the two sides end a 7-year contractual standoff. in 2019.

The Aircraft Mechanical Fraternal Association (AMFA) believes the language of the contract protects members on leave as long as Southwest outsources maintenance work, its national manager Bret Oestreich said on Friday.

AMFA has asked Southwest to provide information on its outsourcing footprint and costs, while continuing discussions on possible cost reduction measures, outside of opening the collective agreement.

Pilots in the Southwest have also rejected the company’s proposal to cut employee wages by 10%, but remain in talks.

Reporting by Tracy Rucinski; Edited by Alison Williams and Grant McCool

Original © Thomson Reuters

Originally posted 2020-11-06 16:06:10.

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