United Airlines and the union representing 13,000 carrier pilots have reached an agreement in principle to avoid furloughs close to 3,000 aviators.
The pandemic coronavirus flooded travel demand. United said last month that it plans to wrap or lay off nearly 16,000 employees, including 2,850 pilots, starting October 1 when federal aid laws banning job cuts expire until they expire. .
“Any potential mitigation should achieve our goals: stop planned furloughs, stop transfers, and incorporate long-term permanent gains for any short-term, fully reversible changes,” Todd Insler said, chairman of the United Airlines chapter of the Air Line Pilots Association told union members in a note on Monday, CNBC reviewed.
The union and the airline did not provide details of the agreement and how it would reduce costs. It is not immediately clear how long, if passed, the plan will avoid furloughs. The agreement must be approved by union members and leaders.
The airline said in a statement that it continued “to try and reduce the number of non-mandatory furloughs in the United and we are pleased that we have reached an agreement in principle with ALPA that could save pilot jobs.”;
Delta Air Lines said last month that they plan to wrap more than 1,900 of its pilots if it does not reach an agreement with their union. Atlanta-based Delta earlier this summer proposed a minimum guaranteed pilot payment of 15% to avoid furloughs within a year.
Southwest Airlines, Spirit Airlines and JetBlue Airways also negotiated with their pilots’ unions to prevent furloughs. All major US airlines also offer early retirement and other packages to reduce the need for accidental reductions when federal aid expires.
Meanwhile, airplane unions are urging lawmakers to approve another $ 25 billion grant to keep jobs until the end of March.