Southwest Airways’ Boeing 737 MAX plane are parked on the tarmac on the Southern California Logistics Airport in Victorville, California on March 28, 2019.
Mark Ralston | AFP | Getty Pictures
Southwest Airways can keep away from holidays and layoffs no less than till 2021 if union employees conform to make cuts, CEO Gary Kelly advised workers on Monday.
Final week, Kelly warned that the coronavirus disaster might power the airline to comply with go well with and lay off 1000’s of workers within the absence of an extension of state payroll help, which Washington lawmakers are nonetheless negotiating.
If federal support will get via, the airline would cease or roll again wage reduce efforts, Kelly stated.
With out one other package deal to assist payroll accounting, price financial savings must be achieved for all worker teams by January 1, 2021.
Kelly will reduce his base wage to zero by the tip of 2021 and reduce govt salaries by 20% by subsequent yr. The airline can also be lowering all govt group salaries by 10% via January 1, 2022, when he stated they’ll return to present ranges.
The corporate can also be reaching out to union officers for concessions and hoping to succeed in an settlement shortly, he stated.
“We simply do not have time for lengthy, drawn-out and complicated negotiations,” stated Kelly.
Rivals American Airways and United Airways have already began using 32,000 individuals.