Southwest Airlines threatens employees on leave for the first time

Frustrated by efforts to secure pay cuts from pilots, flight attendants and other employees, Southwest Airlines (NYSE: LUV) On Thursday, the wheels were started to allow 6,828 employees to take time off work early next year.

The Southwest and other airlines have been hit hard by the pandemic, with industry revenues expected to be down 65% or more year over year in the current quarter. The industry has been very busy cutting costs, but Southwest has so far succeeded in avoiding layoffs thanks to voluntary retirements and workers agreeing to take extended leave.

In October, Southwest CEO Gary Kelly called unions back to the table, saying workers would have to “sacrifice more” if time off were to be avoided. But those talks went nowhere, and the airline, according to a report from the Dallas Morning News, issued leave warnings to flight crews.

While layoffs and time off have been common during downturns throughout aviation history, Southwest stands out because it has never fired an employee in its 50 year history. But the company – in issuing worker adaptation and retraining advisories (WARNs) to 1,221 pilots, 1,500 flight attendants and about 4,100 other employees – said time off was on the horizon in the absence of a agreement on reductions.

The holidays would take place as early as March 15 or April 1, according to the report.

Even though WARN advisories have been issued, the holidays are not a forgotten conclusion. Southwest has said that if it can get union workers to agree to 10% pay cuts or find other ways to save money, the time off can be avoided.