United Airlines said the job of an estimated 14,000 workers was in jeopardy when the second round of federal aid ended this spring, a recent sign of how the industry is struggling to regain control after the coronavirus pandemic.
Companies are officially and by law expected to notify employees if their jobs are at risk two months prior. It does not mean that these workers will eventually lose their jobs, however. United is turning to new voluntary measures to reduce its headcounts.
What Are Airline Companies Doing Now?
United and American Airlines recently started recalling thousands of employees they furloughed when the first round of government payroll support expired in the fall. Congress approved additional assistance last year in the sector, on condition that they recall employees and continue the payrolls until March 31. United told employees last year that the callbacks would likely be temporary.
“Despite ongoing efforts to distribute vaccines, customer demand has not changed much since we recalled those employees,” the airline said in a staff note Friday, which was seen by CNBC. “When the recalls began, United said most recalled employees would return to their previous status as a result of the fall furloughs around April 1.”
Hawaiian Airlines also sent out staff notices saying it could reduce jobs by up to 900 jobs if aid ceased. Some American Airlines crews may receive similar notices soon, according to flight attendant union memo.
United involuntarily furloughed some 13,000 employees in the fall when the terms of $25 billion Congress approved for U.S. airlines last year expired. The number of employees receiving so-called WARN notifications is high because it also includes others who have taken leave voluntarily or signed up for other optional programs.
Labour Unions
As demand is still a long way off, trade unions are now demanding more state support.
The Association of Flight Attendants (CWA), which represents workers in the United, Hawaiian and others, and the Association of Professional Flight Attendants, American Airlines flight attendants’ union, on Friday wrote to President Joe Biden and congressional leaders urging them to provide a third round of federal payroll aid for airlines that would maintain jobs until Sept. 30.
“Without immediate action on this, essential workers will again be pushed into incredible uncertainty with job loss and cost-cutting on the job that airlines will initiate in the coming days,” wrote AFA President Sara Nelson and APFA President Julie Hedrick.
American Airlines cut off about 19,000 jobs in the fall after the end of employee support. The aviation workers’ union on Friday said notices could come soon.
“Yesterday, American informed us that, due to growing uncertainties in both international and domestic demand, we might again find ourselves overstaffed,” APFA’s Hedrick said in a memo to flight attendants on Friday. “As a result, the Company may be sending a second round of WARN letters to employees across the Company.”
The union said it was discussing measures to reduce the over staffing with American’s management.
“We are definitely going to need to address this unless demand starts to pick up,” CEO Doug Parker said on an earnings call. “We’re already talking to our unions about things we might be able to do.”
