United Airlines has 36,000 employees, or 45% of its U.S. workforce, that their jobs are at risk when federal payroll aid under the CARES Act expires at the end of September.
The warning about furloughs have been sent to about 15,000 flight attendants, more than half of the airline’s cabin crew, and more than 2,200 pilots. More than 4,500 mechanics and technicians as well as more than 11,000 airport operations staff will receive Worker Adjustment and Retraining Notification Act, or WARN, notices.
Federal law requires employers to give staff notice about possible layoffs or temporary furloughs 60 days in advance. United and other airlines that took $25 billion in federal payroll support are prohibited from laying off, furloughing or cutting the pay rates of staff until Oct. 1.
In a memo sent to employees in July, United said workers who are informed that their jobs are at risk might not ultimately get furloughed. The company said it will exhaust voluntary measures before cutting employees. Some of the furloughed staff may be called back to work but that will depend on a return to demand, which some industry executives say could take years.
“The reality is that United simply cannot continue at our current payroll level past October 1 in an environment where travel demand is so depressed,” the airline said in its staff note. “And involuntary furloughs come as a last resort, after months of company-wide cost-cutting and capital-raising.”
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