United plans to furlough 16,000 workers

3, Sep 2020 | nepaltraveller.com
Source::AP

Even with a modest recovery since April, US air travel is down about 70 percent from a year ago, costing the airlines billions in revenue

WASHINGTON

AP

United Airlines said Wednesday it plans to furlough 16,370 employees in October, a smaller number than the airline predicted in July because thousands of workers agreed to leave with the travel industry facing a slow recovery from the pandemic.

Airline officials had outlined 36,000 potential furloughs in July. Since then, thousands of workers took early retirement, buyouts, or long-term leaves of absence.

United officials said the forced job cuts will begin Oct. 1, when a prohibition on furloughs ends. They said the furloughs would be postponed if Washington approves another USD 25 billion to help passenger airlines cover payroll costs.

Flight attendants will bear the brunt of the cuts, with 6,920 getting furlough notices. About 2,850 pilots, 2,260 airport-based employees, 2,010 maintenance workers and 1,400 management and support staff would also lose their jobs.

The figures do not include the 7,400 employees who took buyouts or early retirement. Up to 20,000 more accepted reduced work schedules or took voluntary leaves lasting up to 13 months.

Most union employees in the airline industry whose jobs are cut have rehiring rights — management and administrative staff generally do not. United began the year with 96,000 employees, 84 percent of whom were represented by unions.

The flight attendants’ union said United’s announcement understates the job losses. The union said more than 15,000 flight attendants will leave the United payroll unless Washington approves more payroll aid for airlines, and another 3,400 who stay to keep health insurance will get no guarantee of work or income.

United officials said they were still discussing ways to limit pilot furloughs. Airlines are cautious about furloughing too many pilots because federal requirements for ongoing training mean it takes longer to bring them back.

United’s disclosure comes after American Airlines said it expects to furlough or lay off 19,000 workers starting in October, and Delta has warned nearly 2,000 pilots that they could be furloughed.

Airlines don’t need all their workers because air travel has plunged during the pandemic. Even with a modest recovery since April, US air travel is down about 70 percent from a year ago, costing the airlines billions in revenue.

The airlines have cut schedules — United’s schedule this month is only 37 percent of its schedule in September 2019 — slashed expenses and borrowed billions to survive the pandemic.

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