Southwest Airlines issues first furlough notices as talks with unions
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[November 07, 2020] By
Tracy Rucinski
(Reuters) - Southwest Airlines <LUV.N> said
on Friday it has sent notices of potential furloughs to 42 parts
inventory workers after talks with one union group stalled over pay cuts
the airline argues it needs from all employees to offset $1 billion in
overstaffing costs.
The first furloughs at the 49-year-old company would take place in
January unless the International Brotherhood of Teamsters agrees to a
deal or Washington passes "a satisfactory" extension of a payroll
support program for airlines, Southwest said.
An initial $25 billion in federal payroll support for airline workers
expired in September, prompting tens of thousands of furloughs across
the industry after lawmakers failed to agree another COVID-19 economic
relief deal before the Nov. 3 U.S. election.
Southwest remains in talks over cost savings with representatives of
other union groups, it said, and left the door open for negotiations to
save the 42 jobs at risk among Teamsters members.
"This is not the result we hoped to achieve," Southwest Vice President
of Labor Relations Russell McCrady said in an emailed statement.
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Southwest Airlines planes are seen at LAX airport in Los Angeles,
California, United States, October 22, 2015. REUTERS/Lucy
Nicholson/File Photo
The Teamsters did not immediately comment.
Unions represent about 83% of roughly 61,000 Southwest employees.
Meanwhile, Southwest's outsourcing of maintenance work to foreign contractors
threatened to return to the fray in discussions with the union representing some
2,700 mechanics, after the two sides ended a 7-year contract impasse in 2019.
The Aircraft Mechanics Fraternal Association (AMFA) believes contract language
protects members from furloughs as long as Southwest is outsourcing maintenance
work, its national director Bret Oestreich said on Friday.
AMFA has asked Southwest to provide information on its outsourcing footprint and
costs, while moving forward with discussions on possible cost-savings measures,
outside of opening the collective bargaining agreement.
Southwest pilots have also pushed back on the company's proposal to cut
employees' pay by 10% but remain in talks, as does the flight attendants' union.
(Reporting by Tracy Rucinski; Editing by Alison Williams and Grant McCool)
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