United COO to employees: Consider voluntary separation / New 2021 separation program
May 5, 2020, 1:25 am
#16
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May 5, 2020, 1:29 am
#17
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While this is good advice in general, notification in July of a layoff on October 1 appears to be within both the spirit and the letter of the law.
May 5, 2020, 3:19 am
#18
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While airlines certainly have a lot of very specialized jobs, they also have people who can easily use their skills in other industries.
Obviously, Flight Attendants and Pilots aren't likely to easily find a new job before October. But, ramp workers might be able to find a job in logistics. Ticket/gate agents might be able to find customer service positions. And employees at the call centers might (rather easily) find work at other call centers.
Stuff like that.
May 5, 2020, 4:22 am
#19
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I think that even outside of the airlines this world is about to enter a period of economic feudalism the like we have never seen, and certainly never experienced, before. These are dark times.
May 5, 2020, 4:47 am
#20
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Am I the only person to find the use of the term "separation" here cringeworthy? Why this continual obsession with mis-using longish words in corporate speak in the US nowadays?
May 5, 2020, 5:04 am
#21
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There was an article this morning about 30% pilot reductions. This quote from UA's Chief Pilot was disturbing:
“This displacement bid aligns pilot staffing to a schedule reduction of around 30%, yet our schedule in May, and our expected schedule for June, is reduced by 90%. No one knows when travel demand will return, so unfortunately, the results of this displacement are likely to be a baseline from which future displacements are conducted.”
Is he saying pilot reductions will be proportional to schedule reductions? If that's true for other functions (FAs, mechanics, etc.) then UA might go from 100,000 employees on Jan 1, to 10,000 employees on Oct 1? That would be a tragedy.
“This displacement bid aligns pilot staffing to a schedule reduction of around 30%, yet our schedule in May, and our expected schedule for June, is reduced by 90%. No one knows when travel demand will return, so unfortunately, the results of this displacement are likely to be a baseline from which future displacements are conducted.”
Is he saying pilot reductions will be proportional to schedule reductions? If that's true for other functions (FAs, mechanics, etc.) then UA might go from 100,000 employees on Jan 1, to 10,000 employees on Oct 1? That would be a tragedy.
If the zero-demand/zero-revenue environment is still the case in October, we are looking at a collapse of the global economy and most assuredly the end of the line for most airlines.
At this point, 30% cut (2020 vs. 2019) is the target for most airlines, but this is definitely a “plan for the worst, hope for the best” scenario. 6 weeks ago, a transient 70% demand drop was a worst-case estimate. It’s incredible to consider the speed and intensity with which this situation evolved.
May 5, 2020, 5:36 am
#22
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considering the age of the FA's
Vol separations may make sense for UA.. They last went into bankruptcy in 2002, when their pension plan was replaced with a savings plan. That helps explain why I see so many FA's working who are over age 65. Withour a pension, the main incentive to continue workig is/was the travel benefits. The value of this benefit has been significantly reduced, so why not separate?
May 5, 2020, 5:39 am
#23
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Smart people would only voluntarily leave if they have a new job.
While airlines certainly have a lot of very specialized jobs, they also have people who can easily use their skills in other industries.
Obviously, Flight Attendants and Pilots aren't likely to easily find a new job before October. But, ramp workers might be able to find a job in logistics. Ticket/gate agents might be able to find customer service positions. And employees at the call centers might (rather easily) find work at other call centers.
Stuff like that.
While airlines certainly have a lot of very specialized jobs, they also have people who can easily use their skills in other industries.
Obviously, Flight Attendants and Pilots aren't likely to easily find a new job before October. But, ramp workers might be able to find a job in logistics. Ticket/gate agents might be able to find customer service positions. And employees at the call centers might (rather easily) find work at other call centers.
Stuff like that.
May 5, 2020, 8:10 am
#24
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Wow. This is horrible news. I feel so bad for all those United employees who have to find new jobs. United must really for fast that things are going to be bad if their laying off 30% of employees. What if things get a lot better much faster. What will United do. Let’s hope their like a whether man.
May 5, 2020, 8:18 am
#25
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So we taxpayers gave United, and other carriers, billions in bailout money with the result being a massive cut in service and coverage and a plan to decimate the workforce the moment the no-layoff restriction is lifted at midnight Sept 30?
I think we've been taken for a ride on this deal - the bailout should have required an immediate layoff so people could collect unemployment with the $600 subsidy today through end of July and regular unemployment through end of the year, with a requirement for 75% or better payroll restoration no later than January 1, 2021, or the government would assume full equity ownership of the carrier until the loan was paid back. What idiot inked this dumb arrangement?
Unless we see a big bounce back in the economy within 30-45 days, which is unlikely, I am hopeful the morons in Washington will extent that $600 through end of the year. It can make a huge difference for people who are laid off in an industry where finding replacement work is not easy.
I think we've been taken for a ride on this deal - the bailout should have required an immediate layoff so people could collect unemployment with the $600 subsidy today through end of July and regular unemployment through end of the year, with a requirement for 75% or better payroll restoration no later than January 1, 2021, or the government would assume full equity ownership of the carrier until the loan was paid back. What idiot inked this dumb arrangement?
Unless we see a big bounce back in the economy within 30-45 days, which is unlikely, I am hopeful the morons in Washington will extent that $600 through end of the year. It can make a huge difference for people who are laid off in an industry where finding replacement work is not easy.
Last edited by WineCountryUA; May 5, 2020 at 10:24 am Reason: removing OMNI topics
May 5, 2020, 8:18 am
#26
Join Date: Dec 2006
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After 20 years of feeling like I've been hanging on by my fingertips I can honestly say I'm done. I've elected Voluntary Separation taking the severance and looking forward to doing something else. I put my resume out yesterday and have two interviews tomorrow. I'm looking forward to my next chapter.
May 5, 2020, 8:19 am
#27
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After 20 years of feeling like I've been hanging on by my fingertips I can honestly say I'm done. I've elected Voluntary Separation taking the severance and looking forward to doing something else. I put my resume out yesterday and have two interviews tomorrow. I'm looking forward to my next chapter.
And even if there was significant "voluntary separation", they'll still need to make even more significant job cuts if demand remains non-existent.
Last edited by WineCountryUA; May 5, 2020 at 8:54 am Reason: merged consecutive posts by same member
May 5, 2020, 8:37 am
#28
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Wow. This is horrible news. I feel so bad for all those United employees who have to find new jobs. United must really for fast that things are going to be bad if their laying off 30% of employees. What if things get a lot better much faster. What will United do. Let’s hope their like a whether man.
May 5, 2020, 8:39 am
#29
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There's a reason experts predict a double-digit unemployment rate (11-16%) into 2021.
May 5, 2020, 8:51 am
#30
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I think over the last few years, the amount of money/cash UA was making, they were literally creating/making new positions left and right. I believe they've become way to heavy in Sr Managers and above. I will always believe in great opportunities for a company, one still needs to look at are we making positions just because or do we get a good ROI on this position.
United Airlines Holdings Inc (UAL.O) plans to cut at least 3,400 management and administrative positions in October as the coronavirus pandemic crushes air travel demand,