Southwest sent notices of potential furloughs to thousands of employees Thursday in what represents the carrier's largest batch of notices issued so far.
Southwest Airlines Co. (NYSE: LUV) issued WARN Act notices — which are required as part of the Worker Adjustment and Retraining Notification Act — to nearly 7,000 employees Thursday, according to a statement from the company.
Just because a company issues WARN Act notices doesn't mean furloughs are guaranteed or every employee who receives a notice will be furloughed. There is still time for the company and various unions to reach agreements on cost-cutting strategies and avoid furloughs.
The WARN Act notices issued Thursday represent the largest number of notices Dallas-based Southwest has issued since it
started issuing notices Nov. 6. The carrier also issued WARN notices to
mechanics Nov. 18.
Here are the workgroups affected by the notices, according to the company:
- 2,551 ramp, provisioning, operations, and cargo agents
- 1,500 flight attendants
- 1,221 pilots
- 1,176 customer service agents in ground operations
- 370 customer support and services and source of support representatives
- Six flight instructors
- Four flight simulator technicians
Depending on the workgroup, furloughs will take place March 15 or April 1 or within 14 days after those dates, the company said.
Leaders from unions which represent affected employees such as TWU Local 556, which represents 17,000 flight attendants, and the Southwest Airlines Pilots Association, which represents 10,000 pilots, offered sharp rebukes of the company.
"It's a sad day at Southwest Airlines when the company refuses to allow members to participate in voluntary programs to save jobs and instead sends WARN Act notices to our hard-working aviation safety professionals on the front lines of the pandemic," TWU Local 556 leadership told members in a message.
Captain
Jon Weaks, SWAPA president, said in a video message to pilots that Chairman and CEO
Gary Kelly "put a dollar value on 49 years of Southwest Airlines culture and its commitment to our pilots who are part of its employee family — $220 million."
Southwest has never conducted an involuntary furlough or layoff in its nearly 50 years of operation. That streak could end as soon as January if the company's negotiations with unions continue to yield no agreements on cost-cutting strategies.
In early October, Southwest leadership laid out its offer to unions — agree to 10 percent pay cuts, and there won't be furloughs through 2021. Many unions balked at that proposal, instead wanting to pursue other cost-cutting strategies. So far, negotiations for many of the company's largest unions have yielded no agreements.
"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,"
Russell McCrady, vice president labor relations, said in a statement. "Our absolute goal is to preserve every job at Southwest Airlines; however, due to a lack of meaningful progress in negotiations, we had to proceed with issuing notifications to additional employees who are valued members of the Southwest Family.
"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," McCrady added.
A breakdown of where the 6,828 WARN Act notices were issued was not immediately available Thursday.
Southwest is one of the largest employers in North Texas with 10,000 employees locally between its corporate headquarters in Dallas and operations at Dallas Love Field, one of its busiest airports.