United Airlines CEO Scott Kirby has delivered a somber yet strangely uplifting address to employees concerning impending furloughs in a video message reviewed by Live and Let’s Fly.
United CEO Scott Kirby Informs Employees Of Coming Furloughs
Kirby said he was “saddened” to deliver what would probably be his “hardest” video message ever. There was a deep sense of emotion in his voice, like he was about to cry. I know most will dismiss this as crocodile tears, but I’ve offered positive impressions of Kirby long before he took over as CEO. Of course there have been many “Kirby Kutbacks” I think are just foolish, but he has been brutally honest and is probably the best person at the helm of United right now to ensure its survival.
Anyway, he noted that the pandemic has lasted much longer and been far worse than initially expected. This made United’s early goal of avoiding involuntary furloughs practically impossible. Indeed, United Chairman and former CEO Oscar Munoz told CNN yesterday that the airline industry might need to shrink in half in oder to survive.
On October 1, 2020, United plans to shed the following jobs:
| Group | ~ Job Losses |
| Airport Operations | 2,260 |
| Catering Operations | 320 |
| Contact Centers | 430 |
| Flight Operations | 2,850 |
| Inflight Services | 6,920 |
| Management and Administrative | 1,400 |
| Network Operations Center (NOC) | 180 |
| Technical Operations | 2,010 |
| TOTAL | 16,370 |
Kirby paints the dilemma of saving the airline at the expense of some jobs or saving jobs at the expense of the airline and eventually everyone’s job. He thanks those employees who took an early separation package or voluntary furlough and the unions for their work to forge compromises.
Hopeful Parting Words
Near the end of his two and a half minute message, Kirby addressed employees who will soon be furloughed:
“You are still part of the United family. We care deeply about you. And we will be here for you to come back if you want to when the crisis is over.
“I’m confident that we will get back to our great customer service, investing in that, confident we’ll get back to growth, and that we will have a wonderful company for you to come back to.
“I very much look forward to welcoming each and every one of you back with open arms and in a world where we can once again shake hands or hug if we want to. I look forward to that day.”
I like that message. If I was an employee about to be furloughed, I’d be very sad, but very understanding that it is impossible to keep a full staff when demand has dropped by more than 50% and we’re now heading into the shoulder season with no vaccine in sight.
CONCLUSION
We’ll be hearing similar messaging from other airline CEOs in the days ahead and I can only hope that their optimism about a better time in the future is more than a pipe dream. In the meantime, employees are looking ahead for new opportunities, even if payroll support is extended at the last-minute.
image: Scott Kirby / Instagram
That’s roughly 20% of United’s employees. :/ I wonder whether it would have been feasible to give everyone a 20% pay cut rather than furlough employees.
I floated that idea and it was shot down quickly:
https://liveandletsfly.com/afa-scott-kirby/
Maybe if they would of offered a better early out as SW or DL did to encourage the senior employees to retire would of helped. Now all the lower paid employees are gone and the topped out employees remain. Payroll heavy.
“You are still part of the United family. We care deeply about you. And we will be here for you to come back if you want to when the crisis is over…
“I very much look forward to welcoming each and every one of you back with open arms and in a world where we can once again shake hands or hug if we want to. I look forward to that day.”
That is complete and utter bullshit. Ask anyone who has ever worked for a large corporation. Employees are merely tools, and if/when they need tools again, companies prefer getting new ones rather than bringing back tools they’ve had before. New tools are cheaper and easier to control. Old tools have memories.
It’s 100% about profit, period. Nothing else matters. If you believe otherwise, you are a fool.
Profit and caring are not mutually exclusive. This seems very much unlike the message from say, IAG Chief Willie Walsh, who considers his current redundancy program sweet payback for union actions several years ago that humiliated and infuriated him at BA.
Yes, agree; it’s puke-worthy. All his hokey, home-spun sentiments are cold comfort to those being kicked out, with little more than a pittance, after decades of service. But the stockholders? Oh, they’ll be just fine under these arrangements …
I agree it’s hokey but you might need to brush up on how investments work. Stock holders aren’t going to be anytime soon regardless of these layoffs. UAL holdings are down 57% YTD and that will NOT change until people get back on planes. Stop acting like investors, who actually boost the economy, are going to be the winners here.
That’s one way of looking at it. Another is that the stock price has more than doubled in the past month ( $17.90 to $37.40), indicating that investors are very comfortable with, encouraged by, the slash-and-burn cost reduction measures. It might not be entirely pain free, but there’s every chance they’ll be just fine once the recovery gains momentum…sadly, that can’t be said for the employees thrown on the scrap heap ( hollow promises about coming back into the fold once it’s over notwithstanding…)
I have to agree. Very rarely does anyone ever get rehired once finances improve. That concept went away more than 40 years ago. Only in rare cases (where the furloughed employee has a certain unique skill set, or customer connections translating to sales) is anyone ever brought back.
They are unionized employees. educate yourself. They cant hire anyone for tbose jobs until everyone’s called back or reisgns. And if fhe author of this post watched. Doug Parker gave this speech last week.
@Jance: Well said. I really like your comment.
@Joey: 20% pay cut of everyone does not necessary equal to the salary and benefits of 20% of United’s employees. Besides, if it happens by chance, e.g. the two amounts turn out to be similar/same, the picture is that United does not have enough work. We do not want the UA employees to lose jobs. However, can United and tax payers afford to keep paying those who do not have work and just sit around?
You’re never healthier than when you are sad with a loss and it is tempered with hope. Without some hope people simply cannot deal with loss and grief.
So glad to hear your positive remarks about Kirby. I’m a loyal 1K and Million Miler
I wish I could post the video itself, but I’ve interacted with Kirby in person and watched him closely since his US Airways days. Yes, he is a bean counter and that can be (and has been) detrimental. But he’s smart and I think he does care about employees (just like Oscar).
I’m curious what personal tangible sacrifices Kirby and the other corporate bigwigs have made. Foregone all income and benefits for the year? Agreed to use 100% of stock option money to rehire staff? Repay 2019/2020 bonuses to do their part to keep the airline afloat? If there’s been little to nothing in personal sacrifices then this is just schmaltzy breast beating over kicking a large number of people out while personally benefitting richly. That makes @Jance 100% correct.
Exactly Christian!! We always hear how ” We are all in this together ” When it comes down to it…”WE” turns into “only you” I’ve watched many comp layoff thousands, wash out stock, cancel all benefits, sell assets , etc while the whole time the executives and board are awarding each other pay raises and bonuses. As a tech worker it has happened to me.
“As a tech worker it has happened to me.”
It has happened to me too (more than once). It has happened to most tech workers I know.
If it hasn’t happened to you yet, it will. Don’t be shocked.
Divide Kirby’s salary and a few others by 72,000 employees and you will be disappointed at how little it is.
It’s one thing for corporations to do the expected. Taking care of themselves and suggesting everyone is suffering together. That is not unusual. SD and if the average laborer was going to be treated any differently now would be the time to put people over profit going forward. The tradgedy is the Union following the same practices of the corporation which is taking care of it’s executives at the expense of its rank and file. No one talks about the double whammy. In fact on top of everything else the dues the union collects to not represent the rank and file is the story not told.
great comment Michelle if ppl only knew.