Published on Tuesday, October 6, 2020

Southwest Airlines calls for pay cut to save jobs

Southwest Airlines is seeking widespread salary cuts to avoid involuntary layoffs.

"We all need to sacrifice more," Southwest CEO said in a message to employees.

Kelly, who will go without salary until the end of 2021, wants workers to agree to a 10% pay cut next year or risk big job losses.

"We would have to wipe out a large swath of salaries, wages and benefits to match the low traffic levels to have any hope of breaking even, absent substantial improvement in our business," Kelly said.

It will cut wages of non-union workers from January 2021 and will be discussing a similar proposal with union officials for unionized workers.

This might still be avoided if Congress eventually comes through with a second package of airline payroll support funding.

"Our quarterly losses could be in the billions until vaccines are available, distributed and effectively kill the pandemic. At best, that's looking like late next year," Kelly added in the video.

Kelly urged union negotiators that they need to act quickly.

"We simply don't have time for long drawn out complex negotiations, and I've instructed our company's labor team to take a simple approach. We need to move quickly and with a goal of having cost savings in place for all employee groups by January 1, 2021."

Written by Ray Montgomery, US Editor