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Southwest Airlines asks unions to accept pay cuts to prevent furloughs

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Southwest Airlines is asking worker unions to accept pay cuts so the company can avoid furloughs through the end of the year. Southwest CEO Gary Kelly noted that his goal is still to have no involuntary pay reductions or layoffs in 2020 but that the company has decided to approach union representatives for concessions. (thehill.com) Altro...

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11Mooneymite
Mooneymite Hight 7
It is the job of good management to control costs including the cost of labor. It is the job of unions to protect members from predatory management.
phowry
Phil Howry 4
Controlling costs is a fundamental economic requirement for businesses and homeowners alike.

As for being "predatory", during this pandemic-related downturn do you know if the "unions", or business insurance carries, reduced their fees on union members or airlines, respectively?
rdtruitt
Raleigh Truitt 2
What is "business insurance carries"?
pilotblake
Blake Van 5
I respect SW airlines but have seen too many airlines sacrifice employees for profit. Example, use gov. Relief funds ment to keep employees on job used to buy back STOCKS WHILE LET GO EMPLOYEES or pay "other" company to bust Union.
jimjallen
Jim Allen 5
I’d rather take a pay cut than lose my job. But I’d want some guarantees in writing if I did. This is from someone who took a 40% pay cut going from one job to another resulting from a corporate takeover.
ADXbear
ADXbear 5
Better than no income... act fast
sparkie624
sparkie624 3
They should accept it.. If they do not, then oh well.. that is what happens.
paulgilpin1953
paul gilpin 4
this would not be the first time a union cut off it's nose to spite it's face.
admiral506
wayne holder 1
like Hostess twinkie
patpylot
patrick baker 2
southwest has the opportunity to open the books fully, adjust the salaries at the top of the scale first, and act for the greater good of the line employees in a public manner, a first in the airline industry and one of the first in american industrial history. This would be a huge step in mutual trust and accomodation for the good of labor and management. If any airline could make this step, southwest is at the top of the list. Watch and see what happens.
mikehutch
Michael Hutchinson 2
The problem with pay cuts are the lack of snap backs should things change.
Mezzodrama
Susan Gates 2
Since the CEO has reduced his salary to zero, they should accept the pay cuts with the caveat that when things get back to normal their salaries will go back to what they were.
punkrawk78
Silent Bob 4
The CEO's salary may be zero, but he's still getting millions in stock options. Also pilots, and FA's have already taken a de facto pay cut in that a lot of people increase their pay through trading and open time and that is basically non existent right now.

To top it off, over 2000 pilots took either early retirement or extended leave at greatly reduced pay in order to mitigate layoffs. And the 10% cut will apply to those pilots who took leave. It's a slap in the face that after all this, almost 8 months into the "pandemic", all of a sudden they need concessions ASAP to prevent layoffs. Oh, and SWA currently has over 14 BILLION in cash/credit available which even at current burn rates is enough to last at least the next 2 years.
pilotblake
Blake Van 1
Sele 1-2 aircraft you have parked use money to pay employees. I remember American Airlines used excuse to bust Union while paying 20 million to union busting company ists same old trick just now seem can blame pandemic.
FrankHarvey
Frank Harvey 4
If anybody will buy a/c for immediate cash right now. You'll probably be taking a significant loss if you can find a buyer.
Propwash122
Peter Fuller 4
Back in May Southwest announced a sale-and-lease-back deal for 20 airplanes, raising $815 million. Seems like a lot of money but doesn’t go far when you’re looking at quarterly losses in the $billions. I suppose they could do more deals like that but it’s not exactly a seller’s market just now as Frank Harvey pointed out.
Mmeyers7167
Michael Meyers 1
The pilots should take one for the team and be glad they still have a job.
FrankHarvey
Frank Harvey 1
AA dumped 200 drivers and 800 stews at KPHL this week.
pilotblake
Blake Van 0
This is Disaster Capitalism in full operation sacrifice labor during a pandemic to boost stock market share holders profits.
Only Strong collective Unions and government regulations can stop this predatory actions by CEOs and Corporations. Government financial support (Socialism)for Wall-Street and corporate CEO's but no support for Labor. People must stop supporting Socialism for Wall-Street and rich, it's counterproductive.
WhiteKnight77
WhiteKnight77 -2
Hopefully the unions agree. If the CEO and other management are taking pay cuts, others can too. There are reasons that former union members have voted for being non-union in a new company after their old company closed in part due to labor costs of union members.
rdtruitt
Raleigh Truitt 4
Your statement that former union members "voted to be non-union in a new company after their old company closed in part due to labor costs of union members" is to be doubted UNLESS you have proof that this has actually happened. Union member.
WhiteKnight77
WhiteKnight77 -1
It is no longer online, but former steelworkers in PA voted 400-5 (or something very close) to not unionize as they only had to look out the window of the new company to see the previous company that they worked for. You do not have to believe it, but it did happen.
richoff
richoff -6
But the CEO's and corporate types receive increasing bonus's and options, hmmm!
rlamond
Bob Lamond 11
From the article:
“He announced that, effective Jan. 1, he will reduce all leadership groups’ base salaries by 10 percent until January 2022 and that the airline will “pursue a similar approach” for all other non-union employees.”
Separately, Kelly announced he will take zero salary in 2021.
PSUAth
Supercool Marmol 3
I'm not a fan of flying SWA, due to my travel requirements. But I can't fault a company who tries to "ease" the pain by spreading it around.

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