in ,

Southwest calls for pay cuts, rises on Wall Street

(New York) The American airline Southwest, which called on its union workers to accept pay cuts to avoid layoffs and layoffs through the end of 2021, rose slightly on Wall Street Tuesday.

Posted Oct 6, 2020 at 10:31 AM

Agence France-Presse

The stock rose 1.1% shortly after the opening of trading in a market close to equilibrium.

As government aid intended to help workers in the aviation industry expired on September 30, "we simply cannot continue under these circumstances to keep all workers at full price," said the director. from the Gary Kelly company in a video message posted Monday.

He himself will relinquish his basic salary with immediate effect and until the end of 2021, while the remuneration of the members of the board of directors and management has already fallen by 20%. worth it.

From January 1, all team leaders will see their salary drop by 10% until January 2022, he adds.

But to avoid involuntary redundancies, all categories of workers must accept a pay cut by January 1, Mr Kelly said.

"We just don't have time for long and complex negotiations," he said. Southwest is already separated, temporarily or permanently, from 27% of its employees.

If by then politicians can reach a compromise on a new airline industry aid plan, wages will return to normal levels, the leader said.

Like the other big corporations, Southwest had pledged in the spring not to fire anyone until September 30 in exchange for grants totaling $ 25 billion.

Discussions about expanding this program continue to stall in Washington for now.

American Airlines and United Airlines have already initiated the layoff of 32,000 people.

Written by Rahis

Leave a Reply

Your email address will not be published. Required fields are marked *

Ask about planes permanently affected by the pandemic

IKEA sales fall due to COVID-19