US: JetBlue, Democrats spar over pay cuts: 'Literally no hours for our crew members to work'

JetBlue and Delta Thursday pushed back against accusations from a group of Democratic senators who called out the air carriers for cutting wages by cutting hours, which the senators contend is a violation of terms laid out in coronavirus rescue funding. More than a dozen Senate Democrats — including former presidential contenders Elizabeth Warren, Kamala Harris and Bernie Sanders — released letters on Wednesday to JetBlue and Delta, accusing them of illegally cutting employee compensation via forced reduction in hours. “The CARES Act is clear that, as a condition of receiving this assistance, your company must refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020,” the senators wrote to JetBlue CEO Robin Hayes and to Delta CEO Ed Bastian. “Your decision to cut employee hours is inconsistent with congressional intent and is a blatant and potentially illegal effort to skirt your requirements to keep workers on payroll, and you should reverse this policy immediately,” the letter added. However, in a statement JetBlue said its use of the funds is consistent with the intent of the law. “Given that our flights in many cities are completely suspended and are significantly reduced in others, there are quite literally no hours for our crew members to work in many cases,” the company said. According to JetBlue, demand for air travel had contracted to 10-15% of its full schedule, and the payroll support funds it is allocated under the Act covers approximately 76% of its employee costs. Delta partly echoed JetBlue’s disagreement with the senators contentions. In a statement the airline said, “Delta’s work hour reductions, which comply with the CARES Act, ultimately protect jobs.”<br/>