Southwest warns 6,800 staff they could be furloughed

Southwest warned more than 6,800 employees on Thursday that they could be furloughed next spring — potentially the first job losses in the carrier’s history. Jon Weaks, head of Southwest’s pilots union, called it a “heartless” negotiating tactic meant to extract pay concessions from workers during the pandemic. The latest notices, added to about 400 already issued, mean that about 13 per cent of the Dallas-based airline’s employees have now been warned they may be put on leave without pay. US airlines have furloughed tens of thousands of employees this year as they struggle to adjust to dramatically fewer flyers. Southwest reported a $1.2b net loss in the third quarter on revenue that declined 68 per cent from the same period a year ago. But the company has almost $15b in cash — more than all its rivals, save for Delta. Southwest said it issued warnings on Thursday to approximately 1,500 flight attendants, 1,200 pilots, 2,500 ramp, cargo and operations staffers, and about 1,200 customer service representatives. The furloughs would take effect on March 15 or April 1, depending on the employee group. Weaks said the airline had been pressuring the Southwest Airlines Pilots Association for a 10% pay cut to save up to $225m in labour costs next year, and since the union has refused, it is sending out furlough warnings well in advance of the government-required timeframe. Worker Adjustment and Retraining Notifications — otherwise known as WARN notices — are usually sent 60 days before a mass job cut. “This is a heartless, disingenuous negotiating tactic that they’ve announced during the holidays to put fear in the hearts of employees,”Weaks said, before invoking the airline’s revered founder. “This is not the way Herb Kelleher would have conducted business.”<br/>