Southwest Airlines has begun reaching out to pilot, flight attendant, mechanic and other employee unions to open discussions regarding possible concessions during a post-coronavirus recovery, a company official told Reuters.
"This is just beyond anything we've ever experienced," said Russell McCrady, Southwest's vice president for labor relations. "There are no plans sitting on a desk at the company for anybody to be furloughed, but we're trying to take advantage of the 5.5 months that the CARES Act has provided us to just get started on: 'What if things don't get better?'"
Southwest is due to receive approximately $4 billion in federal payroll aid under the Coronavirus Aid, Relief and Economic Security (CARES) Act, which prohibits airlines from making any involuntary furloughs or pay cuts before September 30.
In a message to employees on Wednesday, United Airlines CEO Oscar Munoz and President Scott Kirby warned that the carrier is already planning for its "overall workforce to be smaller than it is today, starting as early as October 1" as airlines are quickly running out of cash.
According to a letter to members obtained by Reuters, one union leader claimed Southwest was "asking all employees to provide emergency relief" through pay cuts and other measures until the pandemic subsides. "While we stand willing to address the need for temporary relief through more thoughtful voluntary measures, we are wary of concessionary changes to the terms of our existing contract," the leader wrote.
Like its competitors, Southwest is venturing into uncharted territory as the carrier has never had to force pay cuts, layoffs or furloughs over the course of its near-50-year history.
The carrier recently emerged as the world's biggest airline amid travel restrictions and slumping demand.
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