Economy

United Airlines to cut 16,370 jobs as the pandemic rages

United Airlines to cut 16,370 jobs as the pandemic rages”

The carrier previously notified 36,000 employees they faced potential job cuts, but was able to reduce that number through various voluntary buyout and early retirement programs. In July, Authority officials said they weren't considering furloughs at that point.

Congress also approved another $25 billion in loans for airlines under the first stimulus package, but not all of them are tapping the funds.

Flight attendants will bear the brunt of the cuts, with 6,920 getting furlough notices.

The airline industry has been clobbered by the coronavirus pandemic. United began the year with 96,000 employees, 84% of whom were represented by unions.

The announcement comes on the same day that the U.S. Census Bureau released employment statistics that said leisure and transportation sectors lost the most jobs in the New Jersey-New York metro region between July 2020 and July 2019.

Delta Air Lines plans to lay off almost 2,000 pilots without wage concessions, but has not yet said how many jobs for workers including flight attendants and mechanics are at risk. "Where will we go?"

This is because many have opted for leave that will provide healthcare but no money, Association of Flight Attendants-CWA global president Sara Nelson said.

United's reductions would coincide with the 19,000 job cuts planned by American Airlines Group Inc.

More news: Former champ Kerber makes winning return at US Open

Amid the CCP (Chinese Communist Party) virus pandemic, airline travel has significantly dropped as governments around the world restrict travel across their borders and would-be travelers engage in social-distancing practices. Chicago-based United has said that it doesn't expect any meaningful recovery in travel demand until a coronavirus vaccine is developed and widely distributed and administered.

United's September schedule is only 37% of what it was a year earlier.

"We don't have to snap everybody back at the same time", he told reporters.

Airlines that accepted federal aid to cover payrolls have been barred from furloughing or laying off workers since March.

Debate has stalled in Congress over a proposed renewal of the government's $25 billion in payroll support, which would probably carry the same six-month restrictions on workforce cuts.

United said that the CARES Act Payroll Protection Plan extension can stop the furloughs, adding that its officials can be in communication with Congress and the White House.

President Donald Trump repeated Tuesday that his administration plans to help the airlines, but he didn't give any specifics.



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