Southwest Offers Buyout Packages to Employees
Southwest Airlines has suffered in recent months due to the lack of travel demand, similar to most airlines around the world. Air travel is picking up, but the airline says it expects 30 percent less passenger traffic this fall compared to last year.
With 30% less traffic Southwest will need less employees, so it is offering buyout packages in order to cut its workforce. Domestic carriers are looking to do this before September 30th. Until then, they can’t lay off employees, cut salaries or furlough workers if they received grants and loans from the government. We wrote earlier today about American Airlines’ efforts to trim its number of employees.
“Given our current situation, my No. 1 goal is to protect the future of Southwest Airlines and do my best to provide job security for our employees,” Southwest CEO Gary Kelly said in a letter to employees, Dallas News reports. “It is clear that for the near future we are currently overstaffed. It’s imperative that we bring our employee numbers down, voluntarily.”
Generous Packages
According to Dallas News, Southwest employees with more than 10 years at the company would get a full year’s pay and four years of flight privileges if they opt for early retirement.
Pilots would get paid about two-thirds of their average salary for five years or until they hit 65, whichever comes first. Early retirees would also get a year of company-paid health insurance.
The packages offered by Southwest are some of the most generous in the industry. Employees have until July 15 to apply for the programs.
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