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Southwest Airlines threatens to furlough more than 6,800 workers after impasse over w

Southwest Airlines threatens to furlough more than 6,800 workers after impasse over w

Old Dec 4, 20, 5:55 pm
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Southwest Airlines threatens to furlough more than 6,800 workers after impasse over w

Southwest Airlines issued furlough warnings Thursday to 6,828 pilots, flight attendants, ramp workers and other employees after failing to come to a deal on 10% wage cuts for next year as the carrier looks to slash costs amid the COVID-19 pandemic.

The Dallas-based carrier, which has never furloughed an employee or cut worker salaries in its 50-year history, had already warned 444 mechanics and material specialists and now has issued the same notices to a broader group of union employees, including flight crew members.
https://www.dallasnews.com/business/...ver-wage-cuts/
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Old Dec 4, 20, 6:21 pm
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Sad. Management (no-union personnel) is already scheduled to take a 10% pay cut starting 1/1/2021. Too bad the union is taking such a hard line in these difficult times.
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Old Dec 4, 20, 10:03 pm
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Originally Posted by NextTrip View Post
Sad. Management (no-union personnel) is already scheduled to take a 10% pay cut starting 1/1/2021. Too bad the union is taking such a hard line in these difficult times.
Management had no choice !
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Old Dec 5, 20, 8:07 am
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I will never understand those that try to blame someone for things like this.

A business exists to provide a service, but only at a profit. If it costs more money to provide it than the income, they go out of business. It is simple stuff.

Dealing with covid is not so simple - though there are of course arguments some things could or should have been done better - but that is not for this board.
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Old Dec 5, 20, 8:59 am
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Unions are playing for time. There's a 100-day window on furloughs and corporate still "hopes" they can be avoided. While the pandemic will still exist in mid-March, vaccines could start making a dent by late spring.

A lot can happen in 100 days. Politically, and otherwise.

"The furloughs would take place on or around March 15, according to a letter from Julie Weber, vice president of Southwest Airlines."
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Old Dec 5, 20, 1:29 pm
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There is no threat to SW going out of business and they are the only US airline with an investment grade credit rating. SW may not be turning a profit right now, but they are not losing anywhere the level of cash that threatens their existence. With a vaccine expected to be largely circulated by Q3 of 2021, there is an end date for this pandemic and a return to higher passenger levels and yields. If I was a union worker, I would be hesitant about giving up income as the stock price has rebounded since the summer and SW has access to the credit markets to cover these temporary loses.

When SW was achieving record setting profits in 2019, did it want to reopen the contracts and provided employees added compensation? If not, in the bad times, don't expect employees to be rushing to give up pay.
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Old Dec 6, 20, 6:54 pm
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Originally Posted by bgasser View Post
When SW was achieving record setting profits in 2019, did it want to reopen the contracts and provided employees added compensation? If not, in the bad times, don't expect employees to be rushing to give up pay.
Not rushing to reopen contracts, but we were already receiving industry leading compensation and work rules, generous 401k match, stock purchase discounts, AND annual profit sharing approaching 15% of compensation. So I argue that yes, absolutely, the company shares with the employees in good times (salary, profit sharing, retirement, discounted access to benefits of stock dividends/buybacks) and not at the expense of lower base compensation. I say this as a flight attendant who would gladly give up a small amount of my pay for one year to see all of my coworkers keep their job and health insurance in the middle of a pandemic.

This crisis isn't due to mismanagement by SWA leadership - in fact the reason we have lasted this long is good financial stewardship and government aid. If SWA was a bad actor in this, I would certainly fight hard to keep what we have. However, with an external shock to the industry that has decimated business I am willing to sacrifice for one year to keep my colleagues employed AND to position the company to come back stronger and faster. The potential growth of traffic and market share on the backside of this crisis (which is rewarded by the mechanisms listed above) by saving resources now is not unsubstantial.

(I work for SWA and these are my opinions alone.)
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Old Dec 6, 20, 9:04 pm
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Originally Posted by fiuchris View Post
I am willing to sacrifice for one year to keep my colleagues employed AND to position the company to come back stronger and faster.
DL pilots voted 76% in favor of pay cuts to avoid involuntary furloughs. In return, the carrier is barred from forcibly shrinking its staff of 12,900 crew until January 2022. Reportedly, United, Alaska, JetBlue and Spirit crews struck similar deals.

Did SWA offer a comparable pledge?
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Old Dec 7, 20, 12:15 pm
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Originally Posted by LegalTender View Post
DL pilots voted 76% in favor of pay cuts to avoid involuntary furloughs. In return, the carrier is barred from forcibly shrinking its staff of 12,900 crew until January 2022. Reportedly, United, Alaska, JetBlue and Spirit crews struck similar deals.

Did SWA offer a comparable pledge?
Same idea, 10% pay cut and no furloughs until Jan 2022.

Management does have a choice, accept the 10% or find another job

Everyone I talk to, despite how tough 10% can be, is optimistic about the future still and happy to have a job.

As someone said, the reason why WN is even in this good of a position is because of the great work by leadership in previous years. It makes me sad to see some now bash the same leaders that led them to receive record profit sharing for years and have enough money to only ask for modest cuts.
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Old Dec 22, 20, 5:06 pm
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Google the headline if you're unable to get past the paywall for the complete article. Given that the "Bill" is reportedly 5,600+ pages in length, seems likely this article (and others related) will probably update in the coming days.

https://www.wsj.com/articles/airline...d=hp_lead_pos3

The Wall Street Journal
December 22nd, 2020 3:21pm Herb Time

Airlines to Bring Back Thousands of Workers After Passage of Covid-19 Aid Bill

Government relief covers carriers’ payrolls through March, but rebound in air travel remains uncertain

<snip>
"The legislation may halt contentious negotiations between Southwest Airlines and several of its labor unions: the company had told workers that furloughs in 2021 would be unavoidable unless unions agreed to concessions or the government provided more aid."

"A Southwest spokesman said the airline is “very encouraged” but needs to examine the final terms surrounding the payroll funding. He declined to say Tuesday whether the airline will call off its planned job cuts next year."

<snip>
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Old Dec 27, 20, 11:20 pm
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Just an update to this thread. As promised by Southwest leadership, an e-mail was sent this evening to all employees that there will be no furloughs or paycuts in 2021 due the additional PSP money; all WARN notices were rescinded.
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Old Dec 28, 20, 9:39 am
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With the extension of the payroll support program, or PSP, Kelly said Southwest was now “halting all efforts to furlough or reduce employees’ pay, and officially rescinding the WARN notices, furlough notices, notices of potential impact, and notices of pay reduction for Noncontract employees that were previously sent.”
Furloughs, Pay Cuts Not Needed Through 2021
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