United Strikes Deal with Pilots on Buyouts, Early Retirements
To meet with the economic crisis under the wage support programme that occurred due to Covid-19 pandemic, the US Airlines is offering buyouts and early retirements to its employees to minimise the cost.
This is likely to be implemented and executed after September 30 since payroll assistance is provided to the employees under the CARES ACT stimulus plan, which will expire on September 30.
Air Line Pilots Association chairman of United Chapter, Todd Inseler has filed a memo to deal with the layoffs of the employees and said, “We must be prepared for more layoffs”, as they are planning to cut off the employees from the payroll.
The labour union is committed to convince the US government to extend the payroll of the employees till March 2021. Keeping in view the huge reduction of nearly 80 % passengers in the first week of July, the airline has been forced to take this stringent step.
United Airlines proclaimed that it has discussed the matter with the union for about 13,000 employees layoffs due to covid-19 pandemic to check out the cut-off in air travel, which has almost brought a standstill in air travel.
United Airlines is presently 65% down in the stock market, which has resulted in deciding to take this step. The picture will be clear next week about the actual layout of the layoff. Experts say that the voluntary retirement packages for United States pilots is almost similar to that of Delta Airlines, Southwest Airlines and American Airlines.