Southwest Asks Employees to Accept Pay Cuts
 

Google it if you don't have a subscription; it's all over the wires this morning.


The Wall Street Journal
October 5th, 2020

https://www.wsj.com/articles/southwe...hs-11601940411

Southwest Asks Employees to Accept Pay Cuts to Avoid Furloughs

Airline says it can avoid job cuts through next year with union deals

Southwest Airlines is asking the company’s labor unions to accept pay cuts for the first time to prevent furloughs and layoffs through the end of next year.

Airlines have started taking more drastic action, as hopes of receiving more federal aid to cover worker salaries for another six months have grown dimmer, with Congress still at an impasse over additional pandemic relief. Southwest Chief Executive Gary Kelly, who had been receiving reduced pay since March, said Monday he will forgo his salary altogether through the end of next year....

Video from Gary:

https://www.swamedia.com/releases/re...s-through-2021

Even with small cuts, it's impressive WN can make it all the way through 2021 with no furloughs.

Pilots and FAs (assume mechanics and ground ops, as well) have already been working, in many cases longer and more days, for less pay since COVID-19 began. Paid by the trip and less trips every month = less pay every month.
Add in less pay per trip and no guarantee of no furloughs through end of 2021 and permanent contract concessions will be a hard sell.

Employees in some states will probably say bring the furloughs and others will want to give concessions.

For example Minnesota has max unemployment of $740 per week................Florida $275 per week


I can't read the article so I can't see all the details

"already been working, in many cases longer and more days, for less pay since COVID-19 began"

How does that make sense if they are paid per the hour/trip? I think you are trying to say there are less hours available, but that contradicts working longer and more days. Can you please specify what you are trying to say?

"permanent contract concessions"

Where do you see that? All indications it would be for 2021, with pay to return to normal rates on Jan 1 2022

Not paid per hour, paid per trip. A trip consists of an aircraft blocking out of a gate and blocking back in at the destination gate.
Compare a productive day of flying continuous back-to-back trips, that pays 7.8 trips vs. a day of numerous aircraft changes, ground time, reschedules, airport waiting and an unscheduled overnight that pays 5.6 trips.

Return to normal pay rates in 2021 has been stated for non-contract employees.

I know what a trip is. Your initial description just wasn't clear. But now I see that you mean longer days with less actual flying.

I would think the same would be negotiated for contract as Gary indicated, but hopefully PSP passes soon and all of this goes away.

Anytime you ask for givebacks it is difficult. But there is no denying that demand has decreased and the yield airlines are able to achieve on each ticket sold has also declined. GK announced LUV was going to lose around $17M a day for Q3. A private business can take some losses, but at some point, its needs profits for its investors and to reinvest in the company to improve/expand its product.

I feel for the frontline workers, but they are in a much better position than working at AAL or UAL. It is lousy to work in such a boom/bust industry during the down times.