Southwest warns workers of first layoffs in company history

Southwest Airlines issued notices for what could be the first involuntary furloughs in its 49-year history, saying a union declined to discuss concessions aimed at cutting payroll costs. Forty-two workers who manage parts inventory and are represented by the Teamsters union received federally required notices that they could be laid off as of Jan. 11, the airline said Friday. The full work group, which Southwest said voted not to engage in talks, includes 322 employees. The carrier remains in negotiations with other unions. The action could foreshadow additional furloughs if Southwest doesn’t secure givebacks with groups such as pilots, mechanics and flight attendants. The airline has asked employees for a one-year, 10% reduction in labor expense after other cost cuts failed to stem millions of dollars in daily losses caused when the coronavirus pandemic eviscerated travel demand. “We are not closing the door to further discussions,” said Russell McCrady, Southwest’s VP of labor relations. “We hope to continue seeing progress that will protect our employees, while simultaneously responding to one of the greatest challenges ever faced by our airline.” Furloughed employees would be expected eventually to return to work. While the workers, known as material specialists, declined to negotiate contract concessions, the union told Southwest it was willing to discuss other measures that would produce the cost savings, the Teamsters said in a letter to members. The employees “have already sacrificed much” through members who left the company voluntarily or took extended leave, the union said.<br/>