United is latest to back union-led effort to extend coronavirus employment protections
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
United Airlines is backing union-led efforts to extend employment protections for airline employees through March to avoid furloughing as many as 36,000 staff members this fall.
The Chicago-based carrier is following the lead of unions, including the Air Line Pilots Association (ALPA) and Association of Flight Attendants-CWA (AFA), in an effort to get legislators in Washington to extend job protections through March, United CEO Scott Kirby said Wednesday during a virtual town hall for staff that was listened to by TPG.
United’s backing follows a similar move by American Airlines to support the effort, which could save tens-of-thousands airline jobs at a time when the recovery is tenuous at best.
Sign up for the free daily TPG newsletter for more airline news!
American has sent federally-mandated notices of possible furloughs to 25,000 employees and United has sent notices to nearly 36,000 staff. Delta Air Lines has notified more than 2,500 pilots of potential furloughs while Southwest Airlines and Spirit Airlines are warning staff that furloughs may be coming.
Airlines are barred from furloughing or laying off staff under rules laid out in the federal government’s coronavirus aid package, or CARES Act. Those expire on Sept. 30 with Wall Street analysts warning of a “terrible Thursday” on Oct. 1.
“I am confident that we can make it through the crisis without any more funding but it is also going to have an impact on employment,” Kirby told CNBC on Wednesday.
United reported a $1.6 billion loss before special items in the second quarter. The airline expects the travel recovery to stall at around half of 2019 levels until there is a vaccine, or likely until the end of 2021.
Related: United Airlines may furlough up to 36,000 staff as coronavirus forces drastic cuts
AFA and ALPA are pushing Congress to extend the payroll protection program through March 31, 2021. Such a move, they say, would keep thousands of people on payrolls amid a deep economic slump while also giving the travel industry more time to recover from the crisis.
“Hundreds of thousands of aviation employees will lose their jobs through no fault of their own, as travel demand will remain sluggish well into 2021,” ALPA president Joseph DePete wrote in a letter to Congress on July 21. “Beyond the human toll posed by these mass layoffs, the economic damage to the economy and the industry will be substantial.”
ALPA represents pilots at Alaska Airlines, Delta, United and more than 10 other airlines.
Related: United Airlines worries travel recovery will stall until there’s a COVID vaccine
A competing proposal from the Allied Pilots Association (APA) would have the government buy seats on flights as a form of aid. The move would allow airlines to block middle seats in a promotion of social distancing, while at the same time preserve jobs during the downturn.
APA represents pilots at American.
Congress is currently debating a new coronavirus aid package with the hope that a deal can be reached before its scheduled August recess.
Related: American Airlines warns as many as 20,000 could lose jobs
Featured image by Justin Sullivan/Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.