36.5 F
Fort Worth
Tuesday, October 27, 2020
Aviation CEO says Southwest needs union pay cuts to avoid furloughs

CEO says Southwest needs union pay cuts to avoid furloughs

Other News

Test Article

It allowance prevailed enjoyment in it. Calling observe for who pressed raising his. Can connection instrument astonished unaffected his motionless preference. Announcing...

Rays, Dodgers grateful to have fans at neutral-site Series

By SCHUYLER DIXON AP Sports Writer ARLINGTON, Texas (AP) — Individual whistles echo during quieter moments, and a single...

Dodgers look to finish off Rays in Game 6 of World Series

Tampa Bay Rays (40-20, first in the AL East) vs. Los Angeles Dodgers (43-17, first in the NL West)

Robert Francis: From politics to chicken to pickles

Don’t know about you, but you would think with all our technological savvy, the ubiquitous “they” could figure out a way for...


By DAVID KOENIG AP Airlines Writer
DALLAS (AP) — Southwest Airlines will cut pay for nonunion workers in January and says union workers must also accept less pay or face furloughs next year as the pandemic continues to hammer the airline business.

Chairman and CEO Gary Kelly said Monday that unless the federal government gives airlines more money, Southwest will have to sharply cut spending to avoid losing billions of dollars every quarter until a coronavirus vaccine is widely available. Air travel is down nearly 70% from a year ago.
“We would have to wipe out a large swath of salaries, wages and benefits to match the low traffic levels to have any hope of just breaking even,” Kelly said in a video to employees.

Kelly said he won’t get a base salary through 2021 and non-union employees will see a 10% pay cut Jan. 1 to avoid layoffs through 2021. Southwest will negotiate similar cuts from union workers, who represent about 85% of the workforce.
Southwest Airlines Co. had about 61,000 employees in June but at least 4,200 agreed to leave. At least 12,500 more took long-term leaves of absence.

Pay for union pilots, flight attendants, mechanics and ground workers are governed by long-term contracts, but Kelly wants “reasonable concessions” by Jan. 1.
Southwest brags that it has never laid off employees in its roughly 50-year history. The Dallas-based carrier — along with Delta Air Lines — convinced thousands of workers to take early retirement or buyouts but avoided layoffs or furloughs. In contrast, American Airlines and United Airlines furloughed 32,000 workers between them last week.

All the carriers are lobbying Congress and the White House for another $25 billion in taxpayer money to pay workers for the next six months. That’s on top of up to $50 billion in cash and loans that Congress approved in March. Kelly said pay cuts would be rescinded if Congress approves more money.

Latest News

Sept. new home sales fall 3.5%, after strong summer season

By KEN SWEET AP Business WriterCHARLOTTE, N.C. (AP) — Sales of new homes fell by 3.5% in September to a seasonally-adjusted annual...

Stocks have their worst day in a month as virus cases surge

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA AP Business Writers U.S. stocks fell sharply Monday, deepening last...

Dunkin’ shares soar after buyout talks with Arby’s owner

By DEE-ANN DURBIN AP Business Writer The Dunkin' doughnuts and coffee chain confirmed it's held talks to be taken...

How retailers are reinventing Black Friday during COVID-19

KIRBY ADAMS, Louisville Courier Journal undefinedLOUISVILLE, Ky. (AP) — Will COVID-19 finally be the thing that makes Black Friday a thing of...

Best Maid can put you in a pickle store

Fort Worth's Best Maid can put you in a pickle – a pickle store, that is. Friday, Fort Worth’s...