(CNN) — With no air travel rebound or new federal help in sight, United Airlines says it will furlough about 20% of its frontline employees in less than a month’s time.
In a new memo to its employees, United says that 16,370 employees will be furloughed when payroll restrictions attached to a federal bailout expire October 1. United executives told reporters on Wednesday that the number is less than half of the airline’s July furlough forecast, thanks in part to 7,400 employees accepting early retirements or voluntary departures, and an unspecified number taking unpaid leave.
United’s memo calls furloughs a “heart-wrenching” last resort, but the airline “cannot continue with staffing levels that significantly exceed the schedule we fly.”
“It is our expectation that things don’t get anything back close to normal until a vaccine is developed and widely administered,” said a United executive on a briefing call with reporters. He stressed that an extension of CARES Act payroll protection can stem furloughs– and that the airline is in touch with the White House and congress—but a new bailout appears unlikely.
“To be clear, an extension would be the one thing that would prevent involuntary furloughs on October 1 and hopefully delay any potential impact on employees until early 2021,” reads the memo.
The-CNN-Wire™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.
Source: eastidahonews.com
United Airlines will furlough 16,000 employees
More from BusinessMore posts in Business »
More from MoneyMore posts in Money »
- Judge says contractor must give back $114,000 in ‘unearned payment’ to Rigby homeowners
- Constitutional ban on legal pot advances in Idaho
- Broulim’s takes another step toward a Victor store?
- Walmart to build more robot-filled warehouses at stores
- Stimulus checks, unemployment and more: Here’s the aid that’s coming from Washington — and what might be coming soon
More from NationalMore posts in National »
- You have to see this! Country superstar falls on stage after slipping on fan’s phone
- Supreme Court will decide whether Trump is immune from federal prosecution. Here’s what’s next
- Trump tried to ‘corrupt’ the 2016 election, prosecutor alleges as hush money trial gets underway
- Should the SAT still matter after all these years? Why some colleges are bringing it back
- The man who set himself on fire outside the courthouse where Trump is on trial dies of his injuries
Be First to Comment