By Tracy Rucinski Nov 6 (Reuters) - Southwest Airways LUV.N
By Tracy Rucinski
Nov 6 (Reuters) – Southwest Airways LUV.N stated on Friday it has despatched notices of potential furloughs to 42 components stock employees after talks with one union group stalled over pay cuts the airline argues it wants from all workers to offset $1 billion in overstaffing prices.
The furloughs, the primary within the low-cost service’s 49-year historical past, would happen in January except the Worldwide Brotherhood of Teamsters agrees to a deal or Washington passes “a passable” extension of a payroll assist program for airways, Southwest stated.
An preliminary $25 billion in federal payroll assist for airline employees expired in September, prompting tens of hundreds of furloughs throughout the business after lawmakers didn’t agree one other COVID-19 financial reduction deal earlier than the Nov. three U.S. election.
Southwest stays in talks over price financial savings with representatives of different union teams, it stated, and left the door open for negotiations to avoid wasting the 42 jobs in danger amongst Teamsters members.
“This isn’t the consequence we hoped to realize,” Southwest Vice President of Labor Relations Russell McCrady stated in an emailed assertion.
The Teamsters didn’t instantly remark.
In the meantime, Southwest’s outsourcing of upkeep work to international contractors threatened to return to the fray in discussions with the union representing some 2,700 mechanics, after the 2 sides ended a 7-year contract deadlock in 2019.
The Plane Mechanics Fraternal Affiliation (AMFA) believes contract language protects members from furloughs so long as Southwest is outsourcing upkeep work, its nationwide director Bret Oestreich stated on Friday.
AMFA has requested Southwest to supply info on its outsourcing footprint and prices, whereas transferring ahead with discussions on doable cost-savings measures, outdoors of opening the collective bargaining settlement.
Southwest pilots have additionally pushed again on the corporate’s proposal to chop workers’ pay by 10% however stay in talks.
(Reporting by Tracy Rucinski; Enhancing by Alison Williams and Grant McCool)
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