By Tracy Rucinski Oct 5 (Reuters) - Southwest Airline LUV.N
By Tracy Rucinski
Oct 5 (Reuters) – Southwest Airline LUV.Ncan keep away from furloughs and layoffs a minimum of by means of 2021 if union employees comply with pay cuts, Chief Government Gary Kelly instructed staff on Monday.
Final week, Kelly had warned the airline could possibly be compelled to observe rivals and lay off hundreds of staff as a result of coronavirus disaster within the absence of an extension of federal payroll assist, which lawmakers proceed to barter in Washington.
If the federal aid does come by means of, the airline would discontinue or reverse the pay-cut efforts, Kelly stated.
However with out one other payroll assist package deal, he stated price financial savings have to be in place for all worker teams by Jan. 1, 2021.
Kelly is decreasing his base wage to zero by means of the tip of 2021 and persevering with a 20% reduce in senior executives’ pay by means of subsequent 12 months. The airline can be decreasing all management group salaries by 10% till Jan. 1, 2022, when he stated they’ll return to the present stage.
The corporate can be approaching union representatives for concessions and hoping for fast settlement, he stated.
“We merely don’t have time for lengthy, drawn-out, complicated negotiations,” Kelly stated.
Rivals American Airways AAL.O and United Airways UAL.O have already begun furloughing 32,000 staff.
(Reporting by Tracy Rucinski in Chicago; extra reporting by Ankit Ajmera in Bengaluru; Modifying by Anil D’Silva and Nick Zieminski)
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