Southwest backs off threat of furloughs after Covid relief package signed

Sunday, 29 Dec, 2020 0

With President Trump finally signing off the $900 billion Covid relief package, Southwest Airlines has lifted its threat of furloughs or pay cuts.

US airlines will receive $15 billion which goes toward securing jobs through the Payroll Support Program (PSP).

To receive the funds, airlines must keep all employees on the payroll.

The new package lasts through March 2021.

"The new law will provide payroll support for all Southwest employees through 31 March 2021. Given this, we currently do not anticipate the need to conduct any furloughs or pay cuts next year," CEO Gary Kelly said.

The airline had warned nearly 7,000 employees were facing the possibility of furloughs, as it couldn’t agree pay cuts with unions.

The airline has never had to impose mass layoffs in its 50-year history.

Other airlines including American Airlines and United Airlines furloughed tens of thousands of employees when the last Covid relief package expired in October.

They now intend to recall these workers.

Written by Ray Montgomery, US Editor

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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