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Southwest Airlines, the second-largest carrier operating at Denver International Airport, told the state on Thursday that it would lay off 556 of its Colorado employees unless it could strike deals with four of its unions on cost-cutting measures or obtain greater federal assistance from Congress.
“The involuntary leave will take place next year unless we reach agreements to cut costs,” said Julie Weber, director of personnel for Dallas-based carriers in a letter to the Department of Labor and Employment. Colorado Employment under the Worker Adjustment and Retraining Notification Act.
The Denver cuts are part of a larger national reduction of 6,800 workers that Southwest announced Thursday. Since taking off in 1971, the carrier has never laid off or put workers on leave.
Southwest participated in the Payroll Support Program, which provided $ 32 billion to the aviation industry under the CARES Act. When that funding expired at the end of September, the company turned to a voluntary departure program, an extended emergency leave program and pay cuts for managers and non-union employees.
About 25% of workers have taken voluntary quits, Weber said.
The company has also entered cost-cutting negotiations with the Southwest Airlines Pilots Association, the Transport Workers Union of America representing its flight attendants, the International Association of Machinists and Aerospace Workers, introducing its customer service agents. , and the Transport Workers Union of America representing its ramp, operations, supply and freight agents.
“After more than two months of discussions, we have not made significant progress in the cost reduction negotiations,” Weber said in his letter.
Jon Weaks, director of the Southwest Airlines Pilots Association, said in a video sent to pilots that the union had offered several options to meet the company’s cost-cutting goals, but all of them were rejected by labor negotiators. .
“A leave is not inevitable. We will continue to collaborate with the company, ”he said. “Their whole process is flawed.”
The 10% pay cut the airline asked pilots to take would save around $ 220 million, but Weaks said it could be achieved through other means and the company was putting undue stress on it. its employees before the holidays.
Barring a breakthrough in union negotiations or an agreement on further stimulus, the company plans to lay off 54 customer service agents, 13 supply agents and 73 ramp agents in Denver on March 15 , followed by leave for 327 flight attendants and 89 pilots from April. 1.
Southwest said in its letter that it cut spending by $ 8 billion from its original budget and raised $ 18.9 billion from investors. But that still wasn’t enough to cover a 70% loss in income he suffered in the third quarter.
As stimulus negotiations progress in Congress and union negotiations stalled, the company said it had no choice but to cut wages, salaries and benefits.
Before the pandemic, Southwest was looking to absorb 16 new doors on Hall C and building a $ 100 million maintenance facility. It had nearly 4,200 employees in Denver in the summer of 2019 and, the following November, received $ 12.9 million in state tax incentives related to it, adding 1,013 more jobs.
At the end of July, Frontier Airlines, the airport’s third-largest carrier, said it would dismiss just under 400 workers. American Airlines has announced plans to cut 109 of its Denver employees. In September, United Airlines, Denver’s largest carrier, updated its layoff plans, saying it would lay off 913 workers in Denver, up from 2,820 originally slated to stop work in a July notification.
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