Originally Posted by
RickGassko
My understanding of it as it’s been explained to us at F9 is Grant $ = X Payroll $ = Y. If X<Y the difference has to be made up somewhere. Since it specifically says furloughs are off the table until Oct 1, that isn’t an option. It’s the reason a COLA LOA is in the works for us now (after the stimulus was announced). If not enough people take a COLA to make up for the shortage in payroll, that may be why taking the grant $ may not be an option for some companies.
Yes, that's the math they're dealing with.
In some case it might be acceptable if X < Y by some modest amount...
1. Furloughs cost money for training, relocation, etc. If you have lots of fleet types, furloughs cost big money.
2. If they see a potential opportunity to be ready to grab market share later in the year if things rebound, they might be willing to blow a little cash in order to be fully staffed and ready. Big three probably equate massive shrinkage to survival, others may see an opportunity to play chess.
But it sounds like the grants will pretty much cover payroll costs + bennies anyway, unless somebody significantly grew their labor force since the same time period last year. Even then, probably better to take the grant.