Southwest to avoid first layoffs as relief bill clears

Southwest said it would rescind plans to cut jobs and wages next year, now that new federal payroll support has been approved, averting what would have been the first worker layoffs in the carrier’s history. US airlines will receive $15b to pay workers as part of the package President Donald Trump signed into law Sunday. The measure funds employee wages through March 31. Southwest could receive $2b from the law, Bloomberg Intelligence estimated last week. The pandemic forced Southwest to take “actions that we’ve never even considered before in order to save our Company,” CEO Gary Kelly wrote in a memo to employees late Sunday. “Thankfully, as a result of this crucial aid, we can breathe a sigh of relief, knowing that we will not be forced to follow through with those steps.” Airlines are grappling with the worst financial crisis in history as the pandemic continues to rage globally. Southwest had been seeking $500m in labor-cost savings, with the first of nearly 7,300 job cuts expected in January. Additional rounds were possible in March and April. The new federal aid will preclude job cuts for all of 2021, Kelly said. The Dallas-based airline remains overstaffed in “many areas,” he wrote, encouraging employees to use voluntary time-off programs when those are available.<br/>