Southwest sends out WARN letters to 42 employees.

Discussion in 'Southwest Airlines/Airtran Airways' started by swamt, Nov 8, 2020.

  1. swamt

    swamt Veteran

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    A very sad day in Southwest's history.
    For the first time in nearly 50 years of existence, SWA sends out WARN letters to 42 stores employees. Apparently the teamsters have refused to discuss or even hold any more discussions about cost savings with the co.. Seeing no further willingness to talks of cost savings SWA had to do what it was trying so hard to avoid and send the WARN letters involving "up to" 42 stores employees, that can and will turn into furloughs if they don't come to terms with the teamsters OR, the fed gov. comes thru with the extension or a deal to help the airlines soon.
    NOTE: Southwest is still in discussions with all the other unions on cost saving measures. AMFA and co. are also still weighing and discussing on outsourced maint coming back in house to help with cost savings and more work for the overstaffed positions to have work. Hopefully something will come out before end of year for the mechanics group.
    You know, I am not there at the table, but to cut off all discussions and refusing to meet any longer on some kind of cost savings measures is the wrong avenue to take IMO. At least try to get more efficient ideas and offer some sort of way to save the company money.
    At least continue to makes attempts.
    Sorry to all the employees that will be affected by these WARN letters and furloughs if they become reality. Let's all get SWA back to profitability ASAP so we can get all employees back ASAP IF the furloughs has to happen.

    https://finance.yahoo.com/news/small-group-southwest-workers-receive-183631420.html
     
  2. eolesen

    eolesen Veteran

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    Can't blame the company. Its been clear that the unions can negotiate or see the letter of the contract applied.
     
  3. swamt

    swamt Veteran

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    Now most are thinking this was all a tactical move by the company to scare other unionized groups into agreeing with the concessions. Teamsters union representing the stores employees at SWA is now reporting they never walked away from nego's. They too declined the cuts in pay like all other union groups did, but are still willing to work on better efficiency and other cost savings avenues just as the other groups that are still in talks about cost savings issues. AMFA is one of those groups still working hard with the company on cost saving avenues other than pay concessions. AMFA has some very good ideas and many different ways to do it, the question is, "will SWA even try?" That will be the tell tale if they are really serious about cost savings OR are they ONLY interested in pay cuts only.

    https://www.yahoo.com/news/teamsters-says-open-southwest-cost-210722316.html
     
  4. swamt

    swamt Veteran

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  5. swamt

    swamt Veteran

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    Update; SWA just sent the furlough/layoff notices out following the WARN letters. Effective date is January 25th, 2021 and I still think that is IF there is still no extension in airline aid packages.
    Here's a brief part of a memo:

    Furlough Notices Sent to Material Specialists

    To: All Tech Ops Employees



    We wanted to share the difficult news that today, the Material Specialists who received WARN notices last week were sent furlough notices. These notices serve as a formal notification to Employees who will be impacted by an upcoming furlough, which is scheduled to be effective Monday, January 25, 2021.


    This is not a path we wanted to take, but with no further discussions scheduled with the IBT and no cost savings agreement reached, we had to move forward with this option.


    This is a difficult time for our Company, and certainly for our Tech Ops family. And while we have seen some slight improvement to our fourth quarter cash burn outlook based on October’s revenue results, booking trends have softened in recent weeks causing further uncertainty. It is unclear if it is election-related or due to rising COVID-19 cases across the country. We are still losing a staggering amount of cash daily. And we still anticipate facing a billion dollars in overstaffing costs next year. We still have a long way to go on the road to recovery.

    I sure hope an extension can still come prior to end of 2020. I would hate to see SWA having to follow thru with furloughs and layoffs frist time in history
     
  6. robbedagain

    robbedagain Veteran

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    Southwest Notifies AMFA of Its Intent to Violate Labor Contract
    Southwest Airlines notified AMFA of its intent to execute a mass furlough of 403 Aircraft Maintenance Technicians, Facilities Maintenance Technicians, and ...

    Found this on Google search leading news. AMFA International. Best of luck to everyone. especially if as it sounds gonna be rough winter
     
  7. swamt

    swamt Veteran

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    Yes robbed. Sad but true. I will leave you with an article about the Warn letters and follow it with AMFA's immediate response of how they will defend our members with any and all action required.
    Remember robbed, hopefully an extension will come for the PPP so no furloughs will have to happen at SWA in 2021, if no extension of some kind of airline aid then the furloughs MAY take place Jan 25th or within 14 days of.

    https://finance.yahoo.com/m/fa1ccb6...rlough.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

    AMFA's response:

    Southwest Airlines, under its current leadership, showed its true colors today. Those colors paint a picture of a company engaged in textbook crisis capitalism. As you are now aware, Southwest sent WARN Act notices to 403 of our members today. In addition, Southwest sent notices of possible displacement to more than 1,000 of our members. To be clear, if you received a WARN Act notice, this does not mean you will be furloughed. The Company must comply with this federal law and its 60-day notice provision in order to preserve the ability, under that federal law, to follow through with its threatened furloughs. Southwest made the decision to send these
    notices to our members despite the fact we were still engaged in productive dialogue as recent as Monday of this week (November 16) identifying savings already recognized from our group…

    Read the entire update here.
     
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  8. JREwing

    JREwing Advanced

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    #8 JREwing, Nov 19, 2020
    Last edited: Nov 19, 2020
    Think of it this way..... if a business employs 100 people and business is down 65% don't blame the business if they have to lay off 65% of their employees. I'm a blue collar worker like most on these boards, but it's time for a bite of a reality sandwich folks!
     
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  9. swamt

    swamt Veteran

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    Here's the latest update I forgot to post on 23rd. A new type of offer from company. Rescinding the 10% ask, ans asking for future 3% raises to be frozen for 2021 and 2022. In 2023 I think we would get those 2 3% raises back but not for sure as of yet.
    You know, maybe the membership would have a very different outlook and be more willing to help the co. avoid layoffs within their mechanic and related IF they did not so badly disrespect them over almost 7 years to get a contract. If Nitski would have just played it professional and came to terms on a contract in a year or two maybe there would a totally different working conditions between AMFA and the company. This is what happens when LN and crew completely blow nego's tactics and playing games with the mechanics for 7 years. Maybe now they should take 7 years to come to an agreement to avoid layoffs, huh? Whoever ramrodded the mechanics nego's for 7 years are the ones to blame for culture between the company and mechanics.
    Maybe it's time to bring in the man that did get nego's to a completion. A man that really does respect the mechanics and the mechanics also respect. Kinder could save the day once again...

    AMFA-SWA ALR Membership Update #4
    November 23, 2020 -- We met with the Company today for the first time since it issued WARN Act notices to our members last week. The Company’s actions today served only to reinforce its goal of not letting this crisis go to waste. The parties were engaged in the productive process of identifying voluntary cost saving measures when Southwest abruptly, and with no meaningful notice to your Union, delivered WARN Act notices to our members weeks before the holiday season. Southwest was not interested in continuing that productive dialogue today. Instead, it proposed a new round of concessions to our contracts, claiming the voluntary measures we had identified failed to achieve the savings needed by Southwest. Yet, in nearly the same breath, the Company advised it still had not finished costing the value of savings generated as a result of our insourcing measures. It was clear to your ALR’s, given this obvious double talk, the Company is only interested in cost-savings that result from contractual changes. This is crisis capitalism at its finest.
    Download: [​IMG] 20201123_AMFA_SWA_ALR_Mbrshp_Update_4.pdf
     
  10. swamt

    swamt Veteran

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    Hre is what the new offer looks like sent out by the company. This is not official but a memo sent out by the Labor Relations:

    Subject: Cost Reduction Negotiations Update #3


    In an effort to take a different approach in our discussions with AMFA, today we made an offer that would not reduce your current pay rate and would provide job protections for AMFA-represented employees. In our offer, we seek savings by deferring pay rates in 2021 and 2022. Those rates would snap back up to the contract rate in 2023. It is our hope that deferring rate increases will be more palatable to AMFA than a 10% rate cut for 2021 and will serve as a foundation for an agreement to protect jobs. Despite the WARN notices sent, we are still attempting to find a solution, and our goal is to provide options that would give you an opportunity to vote and make your voice heard, one way or the other.


    During the past few weeks we have been unable to reach an agreement on necessary cost savings needed for 2021. While we originally proposed a temporary 10 percent pay rate cut, AMFA stated it would not be considered. With that, Southwest continued exploring a combination of ideas to achieve the Company’s needed cost savings. AMFA has only expressed an interest in getting credit for previous VSP and ExTO participation, or bringing outsourced maintenance back in house to AMFA-represented Employees. This would increase our costs while we are already burning millions of dollars each day.


    Below are the full details of today’s offer, providing the union with another option for a 10 percent cost savings threshold and job protections.



    Here’s an overview of our most recent proposal:

    • No Mechanics and Related Employees would be furloughed, barring any unforeseen or uncontrollable circumstances, prior to January 1, 2022 or for twelve (12) months following the end of a Payroll Support Program (PSP) for the airlines included in a COVID-19 Stimulus legislation signed into law, whichever is later.
    • Effective January 1, 2021, hourly rates of pay would remain at their current rates as applicable in Article 15 until August 16, 2023 at which point they would snap-back to the listed pay rate in the Collective Bargaining Agreement (CBA).
    • No changes would apply to premiums, continuing to pay as reflected in Article 14 and 15.
    • Step increases will continue to pay as reflected in Article 15.
    • Effective January 1, 2021, the Company would not be required to provide Inspector Backfill as reflected in Article 10 paragraph 8. This would expire at 11:59pm on December 31, 2021.
    • For all Employees currently out on ExTO of 12 or 18 months, if ratified, the hours paid would be modified to preserve the pay you are scheduled to receive. (No pay loss to those on ExTO)

    Please recognize we are doing everything we can to preserve each and every job, as well as Southwest Airlines. Without a clean PSP extension, we are nearing the end of our available options. We are hopeful the alternatives presented to AMFA allow us to reach an agreement and give you the opportunity to vote on a proposal that protects your jobs and does not cause a reduction in pay for 2021.
     
  11. 737MAX7

    737MAX7 Advanced

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    This is a bigger pos than the first. Not gonna happen.
     
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  12. eolesen

    eolesen Veteran

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    I know that there are some who think that it's worth the future goodwill with employees to do these types of negotiations, but it's probably never going to work out that way.

    Trading pay for jobs never reaps benefits in the long run. That's why I say go ahead and apply the letter of the contract and be done with it... yeah, I know there are real lives impacted, but we all entered the airline industry knowing that there are going to be layoffs in down times.
     
  13. swamt

    swamt Veteran

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    Yes it is. Not sure if everyone see it.
     
  14. JREwing

    JREwing Advanced

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    All you union folks stick to your guns and don't give up anything. And after the layoffs commence this spring don't complain about having to pull up belt loaders, get back in the bins, lose your good schedules not to mentioned getting uprooted to another station to keep your job. SOLIDARITY RULES NO MATTER WHAT! I wish you luck.
     
  15. swamt

    swamt Veteran

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    Guess you heard already huh?
    Funny how when AMFA pressures the co. of why is it only the mechanics group that received the warn letters when they were speaking to all the unions, that they all of a sudden send out all WARN letters. They were fishing and trying to apply pressure for unions to accept concessions. Now, from what I understand, all groups have now received WARN letters. I still think SWA will vacate these concessions if there is an extension to the aid packages.

    https://www.yahoo.com/news/southwest-airlines-preparing-furlough-nearly-224852040.html
     

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