Southwest Airlines (WN, Dallas Love Field) has warned 402 employees, mostly mechanics, that they could be furloughed on January 25, 2021, if unions do not agree to a new deal with the airline, the Dallas Morning News has reported.
The low-cost carrier, which has refrained from any involuntary furloughs throughout its history, including during the COVID-19 crisis, is planning to reduce the salaries of unionised workers by 10% starting in 2021.
Southwest Airlines underlined that the alternative to the cuts would be another round of federal stimulus. Talks in the Congress have been stalled since the summer. The first round of COVID-related payroll support programme for the airlines expired at the end of September 2020.
"We have been engaged with our unions since early October seeking pathways to help us reduce our costs, and it is unfortunate that we had to move forward with this outcome, as the affected employees are valued members of the Southwest family. We are not closing the door to further discussions, but we need agreements to be reached, Vice-President (Labour Relations) Russell McCrady said.
Meanwhile, the carrier is also gearing up for the resumption of B737 MAX operations. Reuters reported that the LCC has already dispatched a team of mechanics to Victorville, where its thirty-four B737-8s are stored.
Executive Vice-President and Chief Commercial Officer Andrew Watterson told ch-aviation earlier this month that the airline would initially conduct internal proving flights before returning the aircraft to active service. It has yet to confirm the date for the restart of B737 MAX operations but indicated that it would not happen earlier than the second quarter of 2021.
