Thread: WARN letters issued to MX
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Old 11-18-2020 | 10:52 AM
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docav8tor
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Default WARN letters issued to MX
"The COVID-19 pandemic has devastated domestic air travel and tourism. As a result, Southwest Airlines has lost billions of dollars in revenues since the pandemic began. To help offset that revenue loss, Southwest has reduced annual 2020 cash outlays and spending by approximately $8 billion compared with original plans. Southwest has also raised cash of approximately $18.9 billion since the beginning of 2020, but we cannot disregard our almost 70 percent revenue loss in third quarter 2020.

The Payroll Support Program (PSP) for the airline industry, a part of the federal CARES Act, allowed Southwest to operate without any Employee pay cuts, layoffs, or furloughs through September 30, 2020. Southwest implemented a Voluntary Separation Program and an Extended Emergency Time Off Program, which were helpful to further reduce our staffing costs, with approximately 25 percent of Employees taking voluntary options. However, with PSP’s expiration and no clarity that Congress will extend it in the future, Southwest must take further action to reduce our costs associated with Employee salaries, wages, and benefits—the largest cost category by far. Last month, Southwest announced plans to reduce wages or engage in other cost-saving measures for all Leadership and Non-Union Employees. We expect these actions will permit Southwest to avoid layoffs for our Non-Union Employees through next year.

As you know, we have been working with your Union, the Aircraft Mechanics Fraternal Association (AMFA), to negotiate cost-saving agreements to preserve jobs, but after nearly six weeks of discussions, we have not made meaningful progress. As a result, Southwest must unfortunately involuntarily furlough Mechanics and Related Employees, Facilities Maintenance Technicians, and Aircraft Appearance Technicians nationwide to further reduce our costs. The involuntary furlough will take place next year unless we reach cost-saving agreements with AMFA, the government enacts a satisfactory PSP extension, or there is some other unforeseen event such as a significant increase in revenue.

At this time, the first date of expected separations from employment due to this reduction in force is January 25, 2021, or within a 14-day period thereafter. Although we cannot predict with any certainty, based on the best information available to Southwest at this time, we expect that this furlough will last more than six months but will be temporary.

Because there are bumping rights associated with this reduction in force for your workgroup, Southwest is unable to determine which Employees ultimately will be affected by the planned action, nor the specific dates on which they will be affected. In an abundance of caution, we therefore are providing this notice to you and all other Employees in your workgroup who may be affected by the planned furlough due to the exercise of other Employees’ bumping rights. This notice does not mean that you will be furloughed by Southwest, only that there is a potential for furlough if you are bumped from your position. If you ultimately are slated for the furlough, you will receive further notice from Southwest with your expected date of furlough and applicable bumping rights.

For further information, please contact Dawn Siemiet, Senior Manager at 214-792-6477 and [email protected]."
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