Southwest CEO says it might probably keep away from layoffs via 2021 with worker pay cuts

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Southwest Airways Boeing 737 MAX plane are parked on the tarmac after being grounded, on the Southern California Logistics Airport in Victorville, California on March 28, 2019.

Mark Ralston | AFP | Getty Photographs

Southwest Airlines can keep away from furloughs and layoffs not less than via 2021 if union employees conform to pay cuts, Chief Government Gary Kelly advised workers on Monday.

Final week, Kelly had warned the airline might be compelled to observe rivals and lay off hundreds of workers because of the coronavirus disaster within the absence of an extension of federal payroll assist, which lawmakers proceed to barter in Washington.

If the federal reduction does come via, the airline would discontinue or reverse the pay-cut efforts, Kelly stated.

However with out one other payroll help bundle, he stated value financial savings have to be in place for all worker teams by Jan. 1, 2021.

Kelly is decreasing his base wage to zero via the tip of 2021 and persevering with a 20% minimize in senior executives’ pay via subsequent yr. The airline can be decreasing all management group salaries by 10% till Jan. 1, 2022, when he stated they may return to the present degree.

The corporate can be approaching union representatives for concessions and hoping for fast settlement, he stated.

“We merely do not have time for lengthy, drawn-out, complicated negotiations,” Kelly stated.

Rivals American Airways and United Airways have already begun furloughing 32,000 workers.