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Southwest CEO says it could keep away from layoffs by 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 Pictures

Southwest Airlines can keep away from furloughs and layoffs at the very least by 2021 if union staff conform to pay cuts, Chief Govt Gary Kelly advised staff on Monday.

Final week, Kelly had warned the airline could possibly be compelled to comply with rivals and lay off hundreds of staff because of the coronavirus disaster within the absence of an extension of federal payroll help, which lawmakers proceed to barter in Washington.

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

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

Kelly is decreasing his base wage to zero by the tip of 2021 and persevering with a 20% minimize in senior executives’ pay by subsequent 12 months. The airline can be decreasing all management group salaries by 10% till Jan. 1, 2022, when he stated they may return to the present stage.

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

“We merely haven’t got time for lengthy, drawn-out, advanced negotiations,” Kelly stated.

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

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