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United warns 36,000 workers that they may be on leave this fall

The third largest airline in the world says that 36,000 workers, including 15,000 flight attendants, 11,000 door and customer service agents, 5,550 maintenance workers and 2,250 pilots, will receive layoff notices.

Wednesday’s announcement paints a bleak picture of resumption of air travel just days after United announced it would speed up its schedule in August. But as the pandemic worsens in parts of the United States, reservations have started to plummet again.

United ((UAL)has warned for months that it would cut thousands of jobs if travel did not resume before October. Airline workers have so far been largely isolated from job losses that have destroyed other industries. THE Federal CARE ACT, enacted in March, has offered billions of dollars in bailout funds to the industry and has banned accepting companies from cutting jobs, paying wages or involuntarily extending jobs.

This ban ends on October 1.

Notices were sent to employees on Wednesday because federal law requires employers to notify workers 60 days before a massive layoff.

The airline makes only a quarter of the flights compared to last year, a director of the company declared Wednesday, and these flights are, on average, with 55% complete. “The involuntary leaves that we have worked so hard to avoid are now the last option left,” said the executive.

Airlines say massive job cuts are inevitable after bailout dries up

The president of the Association of Flight Attendants-CWA, which represents 50,000 airline flight attendants, including United, called the vacation “gut punch”. But, “they are also the most honest assessment we have seen of the state of the industry,” said union president Sara Nelson in a statement.

“This crisis overshadows all others in aviation history and there is no end in sight,” said Nelson. She called on Congress to expand CARES ACT in order to save hundreds of thousands of airline jobs and “expand it and extend it to all workers”.

United previously revealed in a presentation to employees that it will send layoff notices this month.

“Just because you get a warning doesn’t mean your job is being cut,” United told staff at the time. “However, it is a sign that your work could be affected by involuntary authorization.”

United insists it has done everything possible to avoid the layoffs. Tens of thousands of employees took voluntary leave without pay as the company began to urge workers to do so.

Last month, the company mortgaged its loyalty program for a bank loan, and by the time the company declared between that money and the federal bailout funds, it would have $ 17 billion in cash by the end of September. , or about three times the normal amount of money it carries.

United and all the other major American carriers have also applied for a new series of loans granted under the CARES law, the Treasury Department announced on Tuesday.

Airlines have already received $ 25 billion in aid from the first part of the law. This new series of loans could end up totaling an additional $ 25 billion, and the airlines have until September 30 to decide to conclude the new loans. Delta, Southwest and United said on Tuesday that they have yet to make a firm decision on whether they will need additional federal assistance.

The airline says it hemorrhages $ 40 million every day.

The United executive also said the company was not convinced that lawmakers would spend another round of support in this election year, but that company and union leaders were engaged in conversations with DC.

“We do not believe we can count on additional support from the federal government to survive, and we must take steps to protect the business and protect the long-term interests of the business and the prospects of United employees,” said the executive.

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