By Tracy Rucinski and David Shepardson
By Tracy Rucinski and David Shepardson
CHICAGO/WASHINGTON, March 23 (Reuters) – U.S. lawmakers are contemplating shifting a few of about $58 billion in proposed emergency loans to the airline trade to money grants to cowl payroll prices, 4 folks accustomed to the matter mentioned on Monday.
U.S. Home Democrats have been supporting the grants as a part of a brand new proposal to assist U.S. airways grapple with nosediving demand within the face of the coronavirus pandemic.
Enterprise Insider mentioned the draft of a proposed Home invoice dated Sunday would offer airways with $21 billion in grants and $37 billion in loans.
Republicans and Democrats have been nonetheless struggling Monday to succeed in settlement on a far-reaching coronavirus stimulus package deal, together with the airline assist, after failing to succeed in a deal over the weekend.
Republicans have opposed offering money grants to the passenger and cargo carriers, preferring help within the type of $58 billion in loans.
Senate Majority Chief Mitch McConnell on Monday mentioned Democrats wished extra provisions as a part of a invoice together with “new emissions requirements for the airways.”
Democrats have additionally pushed for a measure barring airways from setting apart union contracts if an airline receives authorities loans after which recordsdata for chapter.
Airways had made a plea over the weekend that $29 billion of $58 billion sought in help be within the type of money grants. In return, they supplied to make no job cuts by way of Aug. 31 and to simply accept curbs on govt pay and forgo paying dividends or inventory buybacks.
United Airways Holdings Inc UAL.O despatched a recent memo collectively signed by its union leaders, asking workers to ship a letter or e-mail to their representatives in Washington, urging fast, bipartisan motion to guard airline jobs.
“Your voice issues – whether or not you’re employed on the ramp, greet prospects within the foyer, take calls in our contact facilities, put together meals for passengers, service our planes or fly on our plane – and our representatives in authorities want to grasp what’s at stake if they don’t act,” the memo mentioned.
Airways together with United have additionally mentioned they’re encouraging workers to use for voluntary unpaid leaves of absence to assist the corporate cut back prices.
(Reporting by Tracy Rucinski and David Shepardson; Modifying by Tom Brown)
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