Even though U.S. airlines are getting access to a $58 billion federal bailout, and even though taking government money places limits on furloughing employees, there are going to be employees who do lose their jobs, lose their hours, and also just have time on their hands.
The bailout actually does allow an airline to furlough up to 10% of its employees (and restrictions lift October 1, 2020.) And those who are still working will receive minimum hours. For instance a part-time employee who had been working 25-30 hours might only work 10 or 12 hours going forward and become eligible for newly more generous unemployment. Even though airlines are getting a bailout, expect some airline employees to go on unemployment anyway.
Just as several hotel chains have done (which aren’t yet getting government money), American Airlines has set up relationships to facilitate hiring of their employees by several large companies who are looking for workers: Walmart, Home Depot, Instacart, Amazon, CVS, and Albertsons. The airline expects to add employers to this list.
Whether you are considering a voluntary leave option or are looking for ways to supplement your existing income, this program was developed with you and your families in mind.
American has launched several unique partnerships with companies across a variety of industries that have a need for additional team members. These partners are seeking many of the valuable, transferrable skills demonstrated by our workforce to fill thousands of seasonal, temporary, part- and full-time opportunities.
A major benefit of the program is that participating companies have committed to moving applicants through expedited hiring measures as quickly as possible — in some cases without an in-person interview.
With each employer applicants are supposed to get either “preferential access” or “an expedited hiring process.” American Airlines is waiving the normal requirement to obtain approval for outside employment for jobs through this program.
American tells me they don’t receive any fees from companies that are part of this program. That surprises me somewhat, because a marketing channel to an already-vetted workforce should offer some value.
I believe the payroll grants do not permit any furlough. The loans do permit 10%, but you’re not going to see any airline taking the loans but not the grants.
There is no furlough required for the $25B grants — can’t see a scenario where an airline does not accept the grant as part of the funding.
Do Amazon and Instacart have any jobs whose primary role is to be there for the safety of their customers and a healthy mix of phone surfing?
So hypothetical he works a $400/wk cook job and his restaurant closes down. He can now apply for unemployment and go from $10/hr (taxable) to $15/hr (taxfree, including payroll taxes) + his regular state unemployment and not working.
Tell me again how this works over 8 months?
Love,
Taxpayer
Those instacart:amazon jobs are terrible, better to just collect unrmployment.
The title of your post makes this sound like a negative, but to me it seems like another nice thing AA is doing for its employees. Not that I expect this to be a lot of help, as few airline employees are likely to be willing to work at a Walmart or CVS.
I wonder if Doug Parker, CEO American Airlines, plans to moonlight at Amazon or Instacart?