In an attempt to prevent widespread employee layoffs, company reports reveal that the top three US airlines are implementing fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement.
Approximately 100,000 employees of American Airlines, Delta Air Lines, and United Airlines Holdings have now accepted temporary or permanent leave deals, the companies announced.
In an attempt to balance their companies with a rapid slowdown in air travel, airlines tend to reduce their workforces. Although, companies are also trying to keep enough workers to service any recovery from the coronavirus pandemic, especially pilots whose training is expensive and lengthy.
As the coronavirus pandemic becomes more under control, airlines have claimed that cancellations are slowing down, and bookings are on the rise, although their flying schedules are still just about 20% of what they usually are.
Delta, With approximately 91,000 employees, announced details of an enhanced retirement package for long-term employees and a separate voluntary opt-out package on Thursday. A memo dated May 27 revealed that both provide cash severance, full healthcare coverage, and travel benefits.
U.S. airlines can not enforce any job or pay rate cuts until Oct. 1 under the terms of the Federal CARES Act, which gives billions of dollars in funds to help offset their payroll costs until Sept. 30.
Airlines have warned of compulsory layoffs after that date if the total workforce is already larger than needed.
American Airlines, with more than 100,000 employees, announced on Wednesday to its management and support staff that it will have to slash around 30 percent of its ranks, the same amount of layoffs expected by United Airlines for its management and administrative workers.
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