Quote:
Originally Posted by AggieAviator
I see the cutoff date for keeping LOA if there are furloughs after June 2021. Where did you get the 2,000 number? Is this number published anywhere in any document? Thanks.
It is from follow up union email.
Furlough Protection
This LOA commits the Company to no furloughs prior to the June 2021 Bid Period (if UAL doesn’t accept the CARES Loan this extends to December 2021). Beyond June 2021 (until termination of the LOA, which is no later than Oct 2022), if the Company furloughs anyone hired prior to August 20, 2016, the MPG/LPA reductions terminate. We are sure many of you will wonder why we picked this date and why the no furlough protection doesn’t last longer.
While we would have preferred to structure this deal to prevent all furloughs for the duration of the LOA, we felt the additional MPG reductions that would have been required would have been untenable for the pilot group as a whole. Currently, given no evidence of an imminent recovery, the Company is largely focused on cash conservation. The Company is not using a traditional cost benefit analysis for manpower decisions and instead is largely making decisions based on near-term cash savings. Our hope is that if we can prevent furloughs until at least next summer, there will be enough evidence of a recovery in the near future that the Company will decide not to furlough at all.
Once there is some amount of improvement due to increasing business demand or the relaxation of international travel restrictions, we believe the Company will return to making furlough and displacement decisions based on a long-term economic and business strategy. Essentially, we are buying an extra eight months to see if there is an improvement. Absent a recovery, the Company will be limited to around 2,000 furloughs if they want to continue to use the provisions contained in this LOA.