Dec 05, 2020 08:00 AM EST
Southwest Airlines has issued layoff warnings to more than 6,800 employees that may be furloughed in spring.
The airline told CNN that they warned 6,828 workers on Thursday that they would potentially be furloughed in the spring. It will be the first in Southwest's nearly 50-year history if the layoffs take place.
The layoffs include 1,176 customer service agents, 1,221 pilots, 1,500 flight attendants, and 2,551 ground crew members who handle baggage, cargo, and restocking planes. The carrier said the cuts would take effect on March 15 or April 1 for different workers groups.
Earlier this year, U.S. airlines like Southwest received a total of $25 billion in federal assistance with the condition that they will not implement any involuntary job cuts through the end of September.
On October 1, the United and American Airlines furloughed 32,000 employees, the day the prohibition ended.
Delta Airlines, on the other hand, avoided involuntary layoffs as the employees took early retirement offers and voluntary buyouts.
The airline's pilots agreed to the change in their contracts that will reduce labor costs. However, almost 16,000 other job cuts were instituted across the rest of the airline industry before Thursday's announcement of Southwest.
Southwest was typically included among the most profitable major U.S. airlines. But the airline has reported losses worth $2.75 billion through the first nine months of the year, also its first annual loss in history.
According to USA Today, companies must send warnings about the looming large layoffs required by the federal Worker Adjustment and Retraining Notification Act (WARN). Most airlines, primarily the United and America, have issued notices and laid off tens of thousands of workers.
Since October, the nation's largest airline has been in negotiations regarding the pay cuts and other cost savings to offset its need for over $1 billion in "overstaffing costs" because of the depressed travel demand from the COVID-19 pandemic.
In a video sent to the airline's pilots on Thursday, the head of the Southwest Airlines Pilots Association, Jon Weaks, blasted the company's lack of faith in negotiation.
Weaks said the union proposed several options for the company's cost-saving goal, but the labor relations officials have rejected them.
"Today marks a sad milestone in the history of Southwest Airlines," the president of the Southwest Airlines Pilots Association said.
Weaks added that he would "put a dollar value on 49 years of Southwest Airlines and its commitment to our pilots who are part of its family: $220 million" if Southwest CEO Gary Kelly proceeds with the layoff plan.
The $220 million is the amount the airline would save if pilots agree to the 10 percent pay cut the Southwest is seeking from the employees.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
As the metaverse takes over more of our digital lives, the commoditization of all aspects of our virtual beings becomes more and more of a reality.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
Bitcoin and cryptocurrency in general guarantee some amazing profits if invested correctly.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Following the pandemic, natural calamities, and major employment shifts, a startling new study on the online news site News Nation shows that 1 in 4 Americans don't have an emergency fund.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.
Ease of access, freedom to choose in which to invest the money and lines of credit designed according to the needs of consumers, are some of the characteristics that have made consumer credit one of the most important financing products in the world’s market.