DALLAS – Southwest Airlines is lifting the threat of furloughs or pay cuts for thousands of workers now that U.S. airlines will get up to $15 billion more in taxpayer aid contained in the coronavirus-relief bill.
American and United Airlines, which together furloughed 32,000 employees in October, said Monday they will bring those workers back temporarily.
This month, Southwest warned nearly 7,000 workers that their jobs could be in danger if their unions did not accept pay cuts of about 10%.
Southwest Chairman and CEO Gary Kelly told employees Monday that federal relief “was always our preferred plan, and it means we can stop the movement toward furloughs and pay cuts that we previously announced.”Kelly said Dallas-based Southwest doesn’t expect the need for any furloughs or pay cuts in 2021.
This spring, as the pandemic caused a nosedive in travel, airlines warned of massive layoffs unless Congress provided federal aid.