United Airlines will require all management and administrative employees to take 20 unpaid days off between May 15 and September 30, as the airline scrambles to reduce costs due to the coronavirus pandemic.In a leaked memo seen by Business Insider, United’s head of human resources said that the airline was trying to save as much money as possible, and expects to lay off at least 30% of its administrative staff on October 1.Laid-off administrative workers will not receive severance. In the memo, United suggested that workers consider leaving voluntarily in exchange for a benefits package.Are you an employee at United or another airline? Contact this reporter with your thoughts or tips at firstname.lastname@example.org.Visit Business Insider’s homepage for more stories.
United Airlines will require many of its management and administrative employees to take unpaid days off over the coming months, despite a clause in the federal coronavirus aid bill meant to protect airline worker pay.In a memo to management and administrative employees — also known as M&A — and seen by Business Insider, United’s head of human resources Kate Gebo outlined a series of drastic cost-cutting measures.Contents of the memo were first reported on Twitter by user xJonNYC and by Skift reporter Brian Sumers.All of United’s M&A employees will be required to take 20 unpaid days off between May 16 and September 30. Employees without a direct impact on day-to-day airline operations will assume a four-day workweek with unpaid Fridays off. M&A staff who are part of essential operations will have varied work schedules.
The airline will also no longer allow employees to roll vacation days over to the next year unless required by state labor law.US passenger airlines got $50 billion of aid in the $2 trillion federal coronavirus aid bill, the CARES Act.The aid was divided into two programs: $25 billion in operating loans, and $25 billion in payroll assistance, 30% of which the Treasury Department issued as loans, and the rest as grants.In order to receive aid under either program, airlines were required to make concessions such as suspending stock buybacks and dividends, capping executive pay, and issuing equity to the government.
Additionally, airlines were required to commit to no involuntary layoffs or furloughs of staff until September 30.United
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