Southwest Airlines has warned more than 6,800 employees of potential layoffs as it reported "less than meaningful progress" in negotiations with several of its employees' unions.
The warnings, a requirement under the Worker Adjustment and Retraining Notification Act, said Southwest would implement involuntary furloughs in mid-March or early April unless the unions approved the agreements, which include temporary pay cuts to save costs, or unless further federal payroll support aid is approved. The employees included 1,500 flight attendants, more than 1,200 pilots, nearly 1,200 customer service agents and more than 2,500 ramp, provisioning, operations and cargo agents.
"We have been engaged with our unions since early October seeking temporary cost reductions to help offset over $1 billion of overstaffing costs projected for 2021," Southwest VP of labor relations Russell McCrady said in a statement. "We are willing to continue negotiations quickly to preserve jobs if we can achieve the support that allows Southwest to combat the ongoing economic challenges created by the decline in demand for air travel."
Some of Southwest's rivals, including United Airlines and American Airlines, already have undergone workforce reductions amid the Covid-19 pandemic, but Southwest long has boasted of having never conducted involuntary furloughs or layoffs in its history. Southwest Airlines Pilots Association president Jon Weaks in the video message called the WARN notices a "sad milestone" in the airline's history.
"[The pilot's union] has offered several solutions that fulfill [Southwest CEO Gary] Kelly's demand for savings, but labor relations has rejected each of them," Weaks said. "Our negotiating committee remains engaged in offering data-driven solutions to the company's very short-term problems and options that protect all of our pilots' careers."
Southwest has reached agreements with its dispatch and meteorology workgroups that include furlough protections through the end of 2021, according to the carrier.