In a memo to employees sent last weekend, Southwest Airlines CEO Gary Kelly warned that “the ship is taking on water.” As Southwest Airlines moves closer to furloughs for the first time in its history, Kelly is warning that pay cuts will be needed to avoid them. But flight attendants and other unions don’t appear ready to make concessions.
Southwest Airlines CEO Warns Of Furloughs, But Unions Shrug
Southwest Airlines lost $1.6BN in 2020 Q3 and hopes of a Christmas recovery have all but evaporated. Now CEO Kelly has presented an ultimatum to employees: take a 10% pay cut or face furloughs for the first time in company history.
Yet unions don’t seem all that concerned. WARN notices (notices of potential layoffs mandated by federal law) will be coming, but Transport Workers Union Local 556, the union representing Southwest flight attendants, seemed dismissive of the potential notices:
“Your negotiating team believes that the company will continue through the process of issuing notices of potential furloughs as required by the WARN Act, even if those notices are not followed by furloughs.”
Thus far, the union has refused to consider pay cuts.
The Aircraft Mechanics Fraternal Association also dismissed potential pay cuts, calling Southwest’s promise of no layoffs duplicitous when it couched its promise the caveat of “barring unforeseen or uncontrollable circumstances.”
The Southwest Airlines Pilots Association also condemned the caveat, noting:
“That language is wholly unnecessary as [Southwest] pilots will work collaboratively on solutions that are favorable to both parties, just as we have always done at Southwest Airlines, should ‘unforeseen or uncontrollable circumstances’ arise.”
Gary Leff reasons that unions may be burned for calling Southwest’s bluff.
That may be, but I think there is something else going on: senior Southwest flight attendants would rather see junior members cut than face pay cuts for themselves.
While in Chicago last week, I had an extended conversation with one such flight attendant. She was non-revving on United Airlines (for the first time) and was not used to O’Hare Airport or United’s procedures (Southwest has a hub in Chicago Midway, but will start O’Hare service in 2021). I was sitting in the gate area (maybe she stole my pizza?) and she hit me up with some questions about boarding.
We began talking and she made perfectly and unequivocally clear:
“I am not giving up anything. We will not take a pay cut at all. Let the juniors be furloughed. Whenever you give something up, you never get it back.”
Take that for what it is worth…the opinion of one flight attendant. But based upon the way United Airlines’ more senior members approached furloughs, this position hardly seems surprising.
CONCLUSION
Perhaps the flight attendant union is not concerned about WARN notices because its senior members have made clear they will accept no pay cuts. Thus, this becomes less an issue of calling out Southwest’s bluff and more an issue of airline unions being airline unions by protecting their senior members at the expense of their junior members.
image: Southwest Airlines
You write:
“Now CEO Kelly has presented an ultimatum to employees: take a 10% pay cut or face furloughs for the time in company history.”
Is this the first time? Second? Third? Fourth? Your omission of this critical word undermines your otherwise good reporting and anecdote.
Details matter.
Maybe they wouldn’t have lost so much money if they didn’t cancel everyone’s flights! They cancelled 3 of my trips….. totally ruined my year.
I have never in my whole working life (35+ years) experienced a pay cut. I have however had pay freezes. Do you know how devastating a pay cut could affect a household? I say no paycuts!!! Have they even considered pay freeze?
Pay cut vs job loss. ? what is better??
Having worked for an airlines for >30 yrs. It absolutely true. Give up wages and never get it back, plus add insult to injury by then cutting jobs anyway.
Really? I have worked in the airline industry for 34 years. Continental i had pay freezes, and pay cuts and survived 2 bankruptcies but survived until the merger. We survived 911 took another pay cut but we still stood tall. But Covid is not same. They are complaining about a ten percent pay cut! You can adjust your budget. Why not talk to a United or American FA 22 years laid off collecting 1800.00 a month unemployment. Even after the airlines warnings it caught everyone off guard it went over 20 years. I walked away from a job i loved but I would of been happy to take a 10 percent cut over watching the blood bath that took place. Some of my best friends are now unemployed.
Trust me from a different transportation industry,, railroad,, even if they take the cuts it will be temporary very temporary before they go to the cuts and furloughs. Might as well stick to your guns. Taking a pay cut wont stop those furloughs.
I think they union’s bet is that Biden wins and bailouts continue.
As a U S. Taxpayer,. I’m appalled. I am suppose to bailout the airline industry to insure their current survival. Even though they continue to bleed losses. The employee s need to make concessions to help their employers from losing money to keep Americans flying for travel options. That may be in the Nat’l Transportation of Commerce and Military necessity. However,. The flights are operating often at less than the normal flight capacity, and at a loss due to flight crew cost per hour. Therefore, every job with the airline has had reduced workload. ( Can’t even get a drink onboard). So you want the same pay to work less. This is why Conservatives despise the Union mantality. Enough said.
Flight Crew’s main responsibility is safety ( in the event of an emergency). Serving drinks has very little to do with our jobs and why we are paid what we are paid. It’s also not an issue about senior flight attendants against junior flight attendants. Trying to protect what we built is for all flight attendants. The company can offer another round of voluntary separation or time away to get there 10% pay cut without undermining the contract and pitting the flight attendants against each other.
Well Pilots don’t serve drinks. Pilots fly the plane, and Pilot’s don’t furlough their abilities to commensurate with what already has been an 18% cut in pay. Most pilots are conservatives. Of all the airlines, this one really doesn’t need a bailout, but it’s hardly fair to allow your competitors who where poor stewards of their money to run amok while they get a leg up and you’re not in that fight for money. I say give none a penny; then you’d see AAL & UAL fail. I’m okay with live and let fly on their own merits.
Slider Where did you get an 18%of a pay cut? I don’t understand. Did they cut your pay? Did your contact allow that already to happen?
Their job is not to bring you a drink on board. Their job is to keep you safe should an emergency occur.
It’s cute when FAs are like “our job isn’t about serving drinks” when customer service and food service is in the job description along with safety. Refuse to do service without a legitimate reason and you’ll be in a fact finding meeting facing suspension in no time.
Be the first airline to throw the mask mandates out the window and win me, and many others, as a customer for life
All about you isn’t it?
Even if Biden wins he wouldn’t have the authority to do any additional bailouts without congressional approval. Trump wanted a second airline bailout and the Senate under Mitch McConnell refused to budge. If McConnell refused to budge under a Trump presidency he for sure will NOT make a deal with a Biden administration should Biden in fact win the White House.
Oh Dave, how naive you are sir. The company wants stuff back yet it was like pulling teeth to get the contract we currently have, when the company was making record profits. So, why on earth would we give it back to them knowing dang well we won’t get it back. Your arguments are off base, you obviously don’t know much on the situation so I’m just here to help you out. Ps what the hell is “mantality” that where you got your information? Lol
You are the best airline and the only airline I fly comfortable with you excellent staff. I want to thank you for the every time I fly great experience that is given to every customer. It’s a sad moment that our country and businesses is falling to bankrupt. We do need a serious change. Thank you Southwest for being large enough to serve and small enough to care.
Last time I flew the stewardess was a mean one. She made sure everyone knew SHE was in charge. I’ve been hearing how more & more problems occur due to their combative attitude.
No, the customer is not always right but the flight people weren’t power trippers either. They seem to be now.
Wouldn’t a pay cut be better than no pay?
Must have been a few decades ago last time you flew. The back end crew is now revered to as Flight Attendants not stewardesses.
Ok Viki! I hope your ok?? These planes are crawling with COVID and unlike nurses in HAZMAT suits you people are handing stewardesses all your germy crap! No
Pay cuts! They will NEVER GET IT BACK
Thank you Shane! These big companies have more than enough money! A pay cut is absolutely out of the question! I always fly Southwest! Yes I’ve ran into one or two rude flight attendants but I won’t let one bad apple speak for the entire crew! Kudos to all the flight attendants!
I would rather have a full mouth root canal without any pain killer than fly again. We flew Unified and it was a sardine can. Absolutely miserable. By the way. I will not fly the problem prone 737 Max if it goes back in service.
Well that’s good to know..
.
In the first paragraph towards the end of the sentence, the word “first” was omitted..
Thank you!
Tribalism at its finest. Even within their own group they’ll be OK with killing off their own thanks to seniority saving their own ass. And I remember when there were a bunch of surly older FA’s because they got all the perks.
Well here’s part of the reason why you have service that is focused all about “safety” and none about customer service. With that kind of mentality of sacrificing their young so the older ones don’t have to give up pay, it’s no wonder.
Totally agree. 75 year old fa are still flying. Its all about the seniority number!
How about a 7% pay cut with a guarantee of no more pay cuts for 18 months?? Oh yeah with a snap back provision ie the first quarter they turn a profit they get the 7% restored. Think management would go for that?? Doubt it.
BTW what kind of pay cuts have they taken??
Bravo!!! My thoughts..
Let me tell you… Some of those flight attendants with a bit of senioriy are the ones that wrote the book.. MEAN GIRLS..
and if you’re hoping to be one of the lucky passengers that gets an oxygen mask in the unlikely event of crash landing then you’d better start brown nosing and feeding those mean girls as many compliments and praise that one can muster up.
Aa a SWA employee and fo conservative, I wpuld like to inform how far up your arse your head is. You know nothing, my workload has DOUBLED!!! And if southwest is hurting so bad, we are they opening 10 new stations next quarter????? Please stfu, becuase you don’t know a damn thing
Wow… I work for SWA as well and I’m not sure how your work load has doubled. On top of that, you’re making overtime. Wow… this company hasn’t done us wrong in the 15 years I’ve been around… why would they start now? Let’s stop the bleeding while we can, m’kay?! I’d like to keep my job for another 30 years… let’s all pitch in while we can. I’d rather take my 10% cut so my coworkers can keep their jobs. This world of entitlement is incredible. This company offers us a Profit Sharing that is almost unheard of… but I’m sure you forgot about that when all of a sudden you had to share your money to help keep the company afloat. Sad.
Nicely said
The unions are not so much taking issue with the 10% reduction in pay, but the force majeure language in the contract. Let’s say the employees agreed to take the 10% and one month later Southwest comes back and say that they have to furlough. According to the contract that they are presenting to the unions, Southwest would be able to do this. The unions have offered other cost savings suggestions. You all are counting someone else’s money. Even a dollar less an hour is survival for some. Also, in order to expand, you have to have money. Southwest is opening 10 new routes. Southwest has freed up their balance sheet. If Southwest did not have the cash, they would not be opening new routes. Both Miami and O’Hare are expensive to operate out of. They want their employees to take the hit instead of messing with their cash reserve. Southwest is savvy
Who do you think will win this battle?
FAs work has doubled? They are opening new stations to get back to using their entire fleet faster, isn’t that what you want?
Having worked for an airlines for >30 yrs. It absolutely true. Give up wages and never get it back, plus add insult to injury by then cutting jobs anyway.
I flew twice in the last two days on SWA. Each flight had FOUR F\A’s – not three as is customary.
The plane was only 2/3 full both times.
They emphasized minimal contact with passengers. One water serving and a small snack bag.
A couple of trips to pick up trash.
I never saw a SWA crew work less. They spent most of the time in the galley. I’m stunned to hear that they are working more with larger crew, less service and fewer passengers
Americans… Keep bickering, pointing fingers, looking out for yourselves and whatever dumb selfish agendas you may have. In meantime… try to understand Chinese culture… Chinese language. Teach your children same. Continue to suppress our commerce, hide behind Covid 19 and wait for Chinese rule. That’s what we will get if we dont work together as americans for the American way of life. Across the board… it’s about both…. paychecks and sustainability of our airlines. Unions and Southwest need to figure it out. Bailout or not…
I love flying on southwest! America’s airline! Yea! The Southwest flight attendants are not that nice… not taking sides… just being honest.
I will agree southwest FAs are not always that nice at southwest. I love southwest but man does it remind me of workng for AA sometimes. I thought we were supposed to take care of each other.
Intersting how pay does not go up when profits soar.
They do. It’s called profit sharing.
SouthWest was our favorite airline but no more. We had to fly in August and were assured by customer service that they would maintain the mask mandate. Both ways to and home again and people were allowed to not have masks on and we were trapped. Never again. I’ve heard Delta has actually returned their planes to airports when people have refused to wear masks so that will be than airline I will look at next time.
I’m totally flying Southwest in you recommendation, thanks!
Maybe SW could start charging for bags – cheaper than other flights ($20 per bag for Domestic and $25 for international)! That’s about a $1million+ per day on 20 flights at 100 passengers per 50 airports per one bag a person in the US… So… there you go!
Wow- an entire article based upon one conversation with one “senior” FA from our “junior” MDW FA. (I have been a HOU SWA FA for 27 years, and have a difficult time referring to myself as senior.)
What you have failed to mention is that our monthly lines have already been reduced almost 15%. Now, we are being asked to take an additional 10% pay cut with no guarantee of future furlough. That’s a 25% reduction in pay with very little extra fly to make up the difference.
Had you asked me about taking concessions, the headline of your article would been different. I am willing to concessions, AFTER the company exhausts all other revenue streams.
Actually, it was article based upon that conversation (she’s been with Southwest for over 30 years), statements from the unions, and the warning from your CEO…
I did not mean to infer your article was not based on statements from SWA unions & Gary’s own press release. I personally, don’t share the same opinion of the FA mentioned in your article. Not all senior FAs are in favor of furloughing in exchange for no pay cut.
The headline of your article gives the impression SWA flight attendants are “indifferent” about the position we are facing. We are not indifferent about the seriousness of our future.
INDIFFERENT??? 4800 of us flight attendants took voluntary leave, early separation or early retirement to keep the company afloat. That’s 32% of flight attendants and 25% of the companies staff.
Now they want 10%??? Our work has been cut in half, our income has suffered greatly, we no longer contribute to our 401k, just to stay afloat. We made $110k last year and now we will barely make $70k and we live in California!?! Yet, management still gets bonuses on numbers and executives haven’t seen ANY pay loss during these crazy times.
We are expanding our cities and our cargo routes we are spending money on contracts and contract workers when we have the staff to keep it all in house.
The company is on a witch hunt with a weaponized social media policy and a diversity and inclusion department that only includes people who think like them. That is costing us tons of wasted dollars.
HDQ can look in the mirror for once. With it’s 49 VP’s and wasted dollars on their divisive tactics. We FA’s are done sacrificing for the company.. Enough is enough.
You haven’t heard? Execs already took cuts and there are no bonuses.
When I see it in writing. I’ll believe it.
At United for topped out Fas a 10%! pay cut would only be a $6.71 reduction in pay. Who would risk their job for a mere reduction in pay of $6.71 cents an hour. 10% deductions is nothing. Take the 10%! Pay cut at Southwest and keep your job.
One reason that these employees are not willing to take a pay reduction is because they worked 5+ years without a pay raise because the company dragged out negations to renew union contracts and finally received a new contract mid year 2019. You shouldn’t make disparaging remarks about something before you know the facts.
Why isn’t all the politicians from local to state to Congress not receiving pay? Is their jobs more important than the street sweepers? These people should have been the first to refuse pay to show that they were in this fight with us! NO, their fight is different and we have seen it this election period. A certain segment of them want more and more control over all of us. With this China virus, they are trying their best to bankrupt the entire country and in some segments, it has worked. When will the people wake up and see the light. If you feel safe in a bubble suit then fine, wear it. If I feel safe in shorts and a T then let me wear it. The mask are just a scam like the CDC and the FDA by not allowing the medicine to be used to save CV19 patients at the beginning.
I tried leaving a comment but it was shot down by the liberal patrol!
Just a delay in processing first-time commenters. Your comments will now be automatically approved unless you use profanity.