American Airlines is warning unions that layoff and furlough notices will be sent to workers soon as the carrier lays the groundwork for potential job cuts and furloughs in the fall.
Fort Worth-based American Airlines has been telling its employees that the company is overstaffed by as many as 20,000 workers and that it will need to trim its workforce by fall. The COVID-19 pandemic has resulted in a massive drop in passenger traffic and airline executives say passengers traffic is expected to be about 30% lighter this fall.
American Airlines began notifying unions that employees may start receiving WARN notices soon, but that doesn’t necessarily mean that they are slated to be laid off or furloughed. The Worker Adjustment and Retraining Notification Act of 1988 requires companies with 100 or more employees to provide 60 days notice of plant closings or mass layoffs. It’s intended to give employees time to potentially find new work or train for new positions.
“This does not mean you will be furloughed. This is a legal requirement that American is taking to preserve their options in the future,” said a message to its members from the Communications Workers of America and International Brotherhood of Teamsters, which represents passenger service workers at American.
American has already started laying off 5,000 corporate administrative and support staff employees.
The airline’s pilots also have been told that WARN notices are coming, according to an audio town hall with Chip Long, managing director of flight operations at American Airlines.
The union that represents the more than 30,000 mechanics and maintenance workers also told employees to expect the WARN notices.
“The reality is that we are in very unstable and worrisome times,” said a letter from leaders of the joint association of the Transport Workers Union and the International Association of Machinists. “While there are certainly more passengers flying today than in late March, this industry is still operating at only a fraction of 2019 passenger levels.”
American Airlines declined to comment.
American is in the middle of offering buyout and long-term leave programs to employees who are willing to voluntarily part with their jobs for at least three months.
Thousands have already volunteered for leave or buyouts, but American Airlines has more than 130,000 workers, including its regional subsidiaries.
“We can’t carry that many extra people and survive this,” Doug Parker said in an audio town hall shared with employees in early July.
Parker said the company still hopes to have zero layoffs or furloughs come fall. But that may depend on how many people take leave and buyout offers.
American has more workers than any other carrier in the world — nearly twice as many as Dallas-based Southwest.
Last week, Chicago-based United Airlines issued WARN notices to 36,000 employees.
On Monday, Southwest Airlines CEO Gary Kelly said the company needs to triple the number of passengers it has by the end of the year or face the possibility of laying off or furloughing workers.
