Flight attendants will make up majority of United's 16,000 employee furloughs
Update 9/2/20: The text below has been updated to clarify that only employees opting for voluntary leave with receive healthcare benefits during their entire time-off period. Most employees facing an involuntary furlough will receive benefits at their current rates for the first three months.
From the early days of the pandemic, airline employees have had a key date marked on their calendars. Beginning Oct. 1, 2020, less than one month from today, airlines that accepted funding as part of the U.S. government's CARES Act will be permitted to trim their ranks to match demand, likely leading to tens of thousands of involuntary furloughs.
While some airlines may be able to avoid involuntary reductions, that won't be the case across the board. Last week, American Airlines announced plans to furlough 19,000 employees, and Wednesday morning, United Airlines detailed its own employee reduction plans.
Related: American Airlines to lay off 19,000 workers when federal aid ends
Back in July, United suggested it may need to furlough as many as 36,000 employees. Through a variety of programs, including early retirements, voluntary leave and even a rare insourcing of 150 jobs in Denver (DEN), the carrier has managed to reduce its total number of involuntary furloughs to 16,370 employees.
Effective Oct. 1, up to 16,370 United employees will no longer receive a paycheck. They will be eligible for company-provided healthcare during their furlough period, however, and could be recalled at any time, with 14-day notice, to return to their jobs.
As of today, United expects to furlough 6,920 flight attendants, 2,850 pilots, 2,260 airport operations employees, 2,010 maintenance employees, 1,400 management and administrative employees, 430 contact center workers, 320 catering employees and 180 Network Operations Center workers.
In addition to the 16,370 involuntary furloughs, thousands of flight attendants, airport operations, management and administration employees have already volunteered to take temporary leave, making the airline's total headcount far smaller than it was before the pandemic.
Sign up for the free daily TPG newsletter for more airline news
All employees on voluntary leave will continue to receive health benefits. In addition, airport, contact center and maintenance workers who volunteered for time off will receive 25% pay during their 12-month leave.
As for flight attendants, while those employees who volunteered for an 8- or 13-month leave won't have a regular schedule, they will be eligible to work individual trips, as they become available. United is still negotiating with its pilots — the airline may be able to avoid a number of involuntary furloughs if an agreement is reached.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.