Southwest Seeks Pay Cuts from Unions to Avoid Layoffs Through 2021

Southwest Airlines said that it is asking unions to agree to pay cuts in order to prevent furloughs and layoffs as the industry struggles to slow losses from the coronavirus pandemic Unions represent about 83% of Southwest employees. Non-union staff salaries are to be cut by 10 percent until January 1, 2022, when they will return to the current level. The union representing Southwest pilots said that it had tentatively agreed to meet and discuss cost savings if a second COVID-19 relief package does not pass. American Airlines and United Airlines began furloughing 32,000 employees when a ban on job cuts expired.

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