Rather than further inflame employee tensions and potentially force a showdown with Congress or the Treasury Department, United is backtracking on its plan to force union employees to take unpaid time off.
United Airlines Backtracks On Mandatory Reduction In Work Hours
Last week, United COO Greg Hart informed employees that many would face a mandatory reduction in work hours. Reaction was overwhelming negative and even American Airlines’ CEO Doug Parker condemned the move. United insisted that its move was in full compliance of the CARES Act, which prohibits furloughs or a reduction in pay rates until September 30, 2020.
But this morning, United had had a change of hart (if you’ll pardon the pun). Instead of forcing employees to take time off, United will now make it voluntary and offer a new incentive package that will allow employees to voluntarily take the time and still maintain full-time status.
Here’s his note:
This note applies to all employees covered by the Passenger Service Employees Agreement and the Fleet Service Employees Agreement (most IAM-represented employees).
United team –
We have heard from many of you following my recent message about the proposed changes to your work schedule. You expressed an understanding of the unprecedented challenges we face, and in fact a good number of you volunteered to help. That said, you also made it overwhelmingly clear that a reduction to 30 hours, while losing your full-time status and the unknowns created by potential bumping, was extremely difficult.
Therefore, while we remain confident that our previous actions were in full compliance with the provisions of the CBA and the CARES Act, I am writing to you today to offer a new solution that meets our need to cut costs and reduce hours, but also potentially preserves your full-time status.
Starting next week, all employees will have the option to participate in a voluntary Company-Offered Leave of Absence (COLA) program that will take full-time employees from 40 hours to 30 hours, and part-time employees from 20 hours to 10 hours. This election will be available on Help Hub, and you’ll soon receive the details on how to enroll and the length of the election window.
Importantly, any full-time employee who participates in this voluntary program will retain their full-time status.
Given our continued need to cut costs across the entire company, this proposed program will only be successful if we have a high rate of participation. We will monitor the participation rates and report back to you on the program’s performance at the end of June. Without a high level of participation, we will have no choice but to reconsider a mandatory reduction to 30 hours for our full-time employees.
We appreciate your candid and direct feedback. As we have said since the beginning of this crisis, our success in proactively cutting costs now will help ensure our company, and the jobs it supports, will be here when travel demand returns.
Thank you for all you do to continue to take care of our customers and each other.
Stay safe.
Greg Hart
Executive Vice President and Chief Operations Officer
Note United does not promise mandatory cuts will be spared in the future. Instead, it notes that if enough employees step up to volunteer, mandatory reductions will not be necessary. However, it warns that without a “high level of participation” these cuts will again become necessary. I’ve asked United for clarification on what sort of participation rate will be necessary.
CONCLUSION
United will not make time-off mandatory for its IAM-represented employees. At least for now. I didn’t see this coming, but based upon the negative feedback I received from many of my contacts within United over last week’s move, this reversal will be well-received.
And once again non-union employees at United, like me, are going to get screwed. Not a peep about the involuntary changes for non union
I wrote about that earlier in the week:
https://liveandletsfly.com/united-airlines-management-job-cuts/
But isn’t the news above good for you, at least on a temporary basis.
It’s good news in that there is now some pressure to also do the same for non unionized employees, but in my opinion… there’s not much reason for the company to do so since we are non unionized and can hardly make a public announcement like the unions can. The internal vibe is not happy, but not much room for us to complain. Happy for the unions, honestly.
Then you should have gone into a work group that is unionized……
… and Mr. Hart’s/United’s backtracking had nothing to do with American Airlines….. it had everything to do with the IAM threatening a lawsuit for United going completely again union contract rules. What do you ex-Continental folks have to say now – you who were so adamantly against being unionized ?
Pure evil. So glad I’m cutting ties with UA.
None of this will really matter come October 1st when they just layoff 60% across the board. They’re just trying to get a jump on it now to save what ever little company they’ll have then. Unions want to play hard ass? That’s okay too.
I don’t know…I feel like if United has to go this route to save money and it’s only May tells me UA may be in way worse trouble than anyone suspects.
The major share of United VP & CXO (Senior Leadership) salary is in Stock Units, they took a base pay cut (which is only a small fraction of their total pay). Now they are coming after 12000 M&A non-union employees siphoning the 20% of salary by force to prop up the share price above $20 until Mar’2021 (that is when their majority of shares are vested).
United is not the same company it used to be…Senior Leadership is the MOST SELFISH and doesn’t care for customers or employees. They use every single small loop-hole in law (like CAREs act) for their selfish benefit at the cost of customers and hardworking employees. No other airline did it, infact American Airlines CEO came out and said today it is ILLEGAl..echoed by Delta and Southwest…Scott Kirby and Oscar Munoz only care about their larger pay (Stock options).
Been through one bankruptcy with forced pay give up’s of over 30% not going to do it twice to make up for poor management choices (like stock buybacks etc) Management can take any enforced pay cuts. ALPA and AFA need to stand their ground with current contracts and not give in to intimidation bargaining techniques/threats etc.
RISE UP !!