In light of the government’s bail out of U.S. airlines, United Airlines cannot furlough any employees until October 1. They can put employees on voluntary leave. They can convince employees to take early retirement. And they can ensure that employees work contractual minimum hours. Employees can be terminated for cause. But layoffs are forbidden through September 30.
United Airlines CEO Oscar Munoz and President Scott Kirby want employees to know that many of them will probably be let go on October 1.
In a letter to employees, the two executives opened by applauding government subsidies for the U.S. airline industry. They note that the bailout does not cover the airline’s full payroll expense, but this is misleading,
This government support does not cover our total payroll expense, but we’re keeping our promise that there will be no involuntary furloughs or pay rate cuts for U.S. employees before September 30.
The bail out more than covers the payroll expense for employees who would have otherwise been laid off. United isn’t denying that. All they’re actually claiming is that government grants don’t cover 100% of payroll for everyone from Munoz, the rest of the C-suite, and the most senior pilots down to rampers and gate agents. But it was never supposed to, since that wasn’t necessary to avoid layoffs.
Munoz and Kirby point out that even with payroll covered they still have to pay for “airport rent, supplies and infrastructure.” Travel is down 97% on United. They’ve cut the May schedule down to 10% of what was previously planned. They haven’t fully cut the June schedule yet, but they will – and they expect the level of cuts to be similar. This means employees will work fewer hours.
The airline doesn’t expect travel to return quickly. Travel will be depressed even into next year, which is a point I’ve been emphasizing over the last 6 weeks,
We believe that the health concerns about COVID-19 are likely to linger which means even when social distancing measures are relaxed, and businesses and schools start to reopen, life won’t necessarily return to normal. For example, not all states and cities are expected to re-open at the same time. Some international travel restrictions will remain in place. Meeting planners and tour operators will do their best to accommodate people looking to avoid large crowds
As a result they expect United’s “overall workforce, to be smaller than it is today, starting as early as October 1.” (Empahsis mine.)
If the point of the $25 billion in payroll grants was to keep people attached to their jobs until the crisis passed, it will not accomplish that.
What United is saying here is true and exactly what we should have expected, indeed because it’s consistent with what they were telling everyone to expect even before the airline bailout was passed.
United employee here !
So I agree with you … Over the weekend dozens of flights were added from EWR and IAH to the Caribbean and to Central America …ORD got a LHR back too .. We as employees were actually thinking … the light has finally shinned in the dark tunnel.
And then this email from Munoz and Scott dropped like a lightning bolt.
It has sunk the morale and confused everyone at same time; to an all time low. It’s a slow and painful death we are being put into. Some of us would prefer to get the axe now so we can move on with our lives, as a 30 year employee I don’t say that lightly.
A lot of us at United, for the first time in a long time see no out of this now … wow .. just wow – and not in a good way !
If I was closed to retirement at the airlines I’d take the package now. Who knows how they’re going to cut retirement for future retirees.
“United Airlines CEO Oscar Munoz and President Scott Kirby” really need to be fired. Unfortunately, unlike the employees, they would still have plenty of money. However, at least if they were fired, they could stop doing damage.
However, I am very cynical. The executive suite is like a big club. I bet if they got fired, they would be rehired as CEO at a different company.
Government bailouts tend only to prolong the inevitable. Sadly, the airline business, as currently conceived, is unsustainable.
The problem for United is that the virus destroyed the booking window for its busiest season, and, absent 75% or more of the summertime revenue, the company cannot survive without dramatic cuts. Even with government assistance.
I’d actually give United some credit here for being totally open with their employees…you know it’s coming, this shouldn’t come as a shock in 5 months so save your paychecks. And to the UA employee asking to be fired now…why wouldn’t you just take a voluntary package then if you want to get out so bad? You’re part of the problem with United and why airlines like DL, B6, and AS are so much more enjoyable to fly with.
This is like death by 1000 cuts. Are country so fucked up. Now airlines are trying to keep employees for money knowing their going to fire them when they could just fire them and let them get unemployment and then move on to other jobs or careers.
I am sorry to see United and it’s employees treated with such dis-respect but once Kirby left AA, you knew it was only a matter of time that he would begin to disregard United’s employees.
I wonder if United will survive now? I could see it being carved up between DL and AA and maybe JetBlue and AK too. Who would take which hub? Maybe AA takes Newark and obviously Ohare; Jetblue takes Dulles and opens international service; DL or SWA takes Houston; SWA or maybe AK or Jetblue gets Denver and AK with AA take San Fran I feel like United is the most risky due to their international profile and that will take the longest to recovery plus they have morons in the C-suite.
I agree with Bob.
As a United employee, as much as it hurts to likely get furloughed come October, I do appreciate Oscar and Scott for being very upfront about it. I would much rather have them tell me now that I may lose my job vs being told it will improve. It allows me to plan for the upcoming cut. Then if things do improve, I get to keep my job.
“… but we’re keeping our promise that there will be no involuntary furloughs or pay rate cuts for U.S. employees before September 30.”
United is taking credit (literally) for doing only what it is required to do to get grants and loans under the terms of the bailout.
I think part of the problem is we are caught in a viscous cycle. My employer is ready to send us back flying starting in July and willing to start scheduling those flights in June, but we hear about flight/schedule cuts and wonder about the ability of United to service those flights. Since we do a fair amount of international flights, the question of how quick United can respond from the various countries opening their borders is another question. Personally, I am a United loyalist so am concerned that another airline could pivot quicker and we would be forced to use that airline either on an interim or permanent basis.
After 38 years of employment by UAL, I retired due to the bankruptcy of 2002 & was rewarded w/ 65% cut in retirement pay, no stock to cash in & no sick pay refund (rarely took sick leave). At least,
you have some warning time to prepare in some way. W/ God’s help, we survived the shock & change, so use the advanced warning to prepare yourself & your family, in case your furlough becomes permanent.
People should not be afraid of the spread of COVID-19 from flying. Clearly it was a problem when the virus was spreading undetected. Now that we are aware of it, the spread can easily be mitigated with the wearing of masks and proper etiquette, hygiene and testing. I would think a vaccine wouldn’t even be necessary to allow things to return to relative normalcy, just a massive rollout of serological testing and penalties for non-compliance with prophylactic and testing regulations. Imagine if Americans (specifically New Yorkers) had been urged to wear masks beginning in February instead of being lied to about their efficacy, while being encouraged by public officials to gather in celebration of Chinese New Year. The threat to the young and healthy from COVID-19 is close to nil as things are already, despite how the media chooses to sensationalize deaths. I look forward to spending many, many hours on airplanes in the near future. Gary should note that obesity is the primary comorbidity for COVID-19 hospital admissions among those 18-49.
Reality check: NO ONE knows what the virus situation is going to be on October 1. That’s almost a half year away! Coronavirus didn’t even exist 6 months ago. It’s obviously wise for UA to caution its employees that their pay is only covered through September. It’s certainly within the realm of possibilities that there will be significant airline layoffs next fall. But titling this thread as “United Airlines To Employees: Get Ready To Be Fired On October 1” is obviously inaccurate and irresponsible.
What are the current employees doing? I am thinking of the ramp workers and gate agents. Must they report to work and do nothing? If so how do they pass time?
Does this come as a surprise to anyone? Loads off 96%! What do you think is going to happen 8 weeks after the PPP program was rolled out? Layoffs. We are headed for a shit storm the likes of which the world has never seen. Be thankful you’re getting 5 months pay and try to save what you can. You’re going to need it, as we all are.
I agree with chopsticks and that it is very inaccurate and irresponsible of you to title this thread United Airlines Employees Get ready to be fired on 10/1.
I pray that you never have to experience the possibility of you losing your job that you love or may not love.
Please keep in mind that the employees that you so disrespectfully talk about have feelings. I wonder: how much would it cost to show just a little bit of empathy and compassion.
This is just a tool for getting more money out of the government… and it will work. When we come out of COVID-19 lockdowns, we’re going to want to fly places, and we can’t do that if airlines have been forced to lay off half their staff. The government will come up with more money for United and the rest, no worries.
I wish there were virtual tomatoes and veggies to throw at the author.
Let me add that this is not just United airlines problem. You’re and idiot. Delta has put out of work over 25k employees on voluntary leaves. I know, my cousin took one.
To the other idiots who think AA and Delta are going to carve up UAL, I wish i could give you a virtual “stupid smack”, specially the one who mentioned Jetblue hahahhahaha. Even at its worst UAL can buy out jetblue you iiiidddiiooott.
My husband works for the airline , and one thing he notices is that there’s so many older men that work for the airline and do maintenance that might as well be retired . They do no work and make the younger men do most of it . They should take the retirement package and stop being greedy because most of them do it out of greed and not necessity . There are people counting on their bread and butter out there putting in the work.
Fired? Where did you see that word in the official announcement from United management? It’s just your low-grade bias and unfriendliness against United Airlines over the years. During the time of crisis like this, words of encouragement or kindness would not a bad idea.
At least they were up front. But I think they could of worded it better. Hopefully, there will be a turn around soober than expected.
I agree with Jean..Have some compassion.I have worked very hard for more than 35yrs with this Airlines.Blood,sweat and tears.We are a family..A big family that cared so much over the year about regular travelers and how they should get from point A to point B for whatever..And while we worked long hours through rain,sleet,snow and broken aircraft we cared..Have some compassion people and remember we worked hard to get you there…We did our jobs and WE CARED…
The title is sensationalism and click bait. As a newer employee of United (coming from the Us Airways/American merger) it’s discouraging to hear this from management but they have done a great job in communicating with us at every step and trying before the grants and loans awarded to prevent furloughs. And Scott Kirby has turned United around as has Oscar Munoz. I do feel that their statements may be a bit premature because we clearly do not know what can happen with this virus as we hit peaks and hopefully a flattening in the coming months before the summer season.
With plans announced today from the government and subsequently the States on how to phase for a reopening of the economy (despite how premature it may be), the bookings they claim may not change from the dismal nature we are currently in, could drastically change by late June or July which could change their outlook completely. I hope this happens and that our country doesn’t get worse in the process from new infections. Contrary to outside belief, there are still flights carrying humanitarian aid, US mail and freight with new flights opening up in May. Hopefully it’s a sign of things to come. The Houston hub alone still has 140 +/- flights a day.
I worked 20 years for UA, mostly in CS @ ORD. The ESOP and the bankruptcy left a bad taste in my mouth. I sought employment elsewhere when it was clear that the the ever-changing stream of CEOs would only continue to reach into our pockets each time the price of jet fuel rose. I landed at a large city 911 center and 14 years later I now work in a small-town 911 center. The skill-set transfers nicely and I would encourage anyone displaced from UA to explore this as alternate employment. 911 call centers are always hiring, they’re everywhere and they won’t ask you to subsidize CEO pay or stockholder dividends. Good luck everyone!
Fired or laid off???
I am grateful for my job at UAL as a Facilities Maintenance Technician at ORD. There is ALWAYS something to repair, fix, or maintain as we cover a lot of area at O’Hare International Airport. I think management has been as up-front as possible considering the situation We are all in. My hope that United Airlines comes out on top of the mess We are all in. All Our Love & Hope, Greg & Liz <3
Do not think that all other airlines will not be doing the exact same thing. Of the majors, American Airlines is most likely in the worse situation. However all are in desperate times. There is no business that can survive a 85- 90% cut in revenue.
Over 20 million people have become unemployed in the last month. 33,000 an hour are losing their job because Congress won’t pass another $250 billion for small business. That’s needed because the first $350 billion went to the connected. 40% of apartment dwellers didn’t make their rent April 1st and they expect it could be as much as 80% in May. Another 5 – 7 million people will lose their job this week. The big banks are setting $20 billion aside to cover loans they are not going to get paid for. Only 20% of restaurants are expected to survive this period. And some people here think that people are going to flood back to the airlines to travel. Where is all that money going to come from? Certainly there will be some but there is going to be a lot of pain before this is all over. When people get back to work they are going to have to get their rent caught up, file bankruptcy to get out from under loans and car payments. A large number of people are now behind on their mortgage payments. I don’t see a lot of money that ‘s going to be available for leisure travel and vacations.
@OneXMarine There’s plenty of families are are lucky enough to still have full income during this time. In fact, I’m saving a ton of money right now from no daycare, no commute, etc….. So yes I’m going to be taking a ton of vacations when restrictions are lifted.
TO THE AUTHOR OF THiIS ARTICLE:
What an insensitive jerk you are. Did you get screwed by United at once or twice in your travels? That’s what I’m thinking….. that’s why your post was so negative and directed straight towards United Airlines. This pandemic affects ALL the airlines not just United.
Perhaps it would be in your best interest to have a little compassion towards some of the employees that might lose their jobs, Instead of spewing negativity and rumors.
This article with this headline is sensationalism. “Fired” is not the same as “furloughed”, and most airline employees are unionized. There are a lot of steps that need to be followed before being furloughed, and all the airlines are trying to do that – early out packages, voluntary leaves, etc. And I agree with most of the comments from others – all the airlines are in the current situation. The author should be ashamed of himself. Most of the information within the article is correct, but the headline is pure sensationalism!
I foresee that United will look for paycuts, then Layoffs. American will do the same. Then they will file for Bankruptcy to wipe out toxic debt. After a reduction of 50% of their employees the companies will merge. The new company will be Unamerican.
Mitch, yes there are a lot of people like you that are still receiving full pay and benefits but when there is 20% – 30% unemployment, which by the way we are already at depression levels that takes a certain amount of volume off the table. The families that are using extra (vacation) money to help their children and relatives survive will take more demand off the table. Yes there are some who will be in position to travel but I don’t believe there will be enough to return to any where 2019 normal level. For me personally, my wife and I have scrapped our plans to Indianapolis this spring and Kansas City later on, as well as our trips to Italy in June and Greece in September. I laid off 20% of my employees this week and 50% of the remaining force will be getting laid off at the close of business on 4/28. . The big banks pushed all of their hedge fund buddies as well as financial advisors and attorneys ahead of small business for the PPP loan and 1000’s of businesses are closing each day nation wide. We have just seen the tip of the iceberg on this economic collapse.
United is struggling,as all the airlines are .layoffs are inevitable, however ,its time to plan for your survival. As far as us old guys not working, that’s bullshit. The junior mechanics are pissed that layoffs will be by seniority. Closure’s will happen. I went thru it from 9/11. This is much broader and will affect all of us for years to come.
It’s LAYOFFS, not FIRING!!!!
azzhole.
You’re right, Congress did include 25B in grants which was to go directly to covering payroll. However Steve Mnuchin unilaterally changed that to 17.5B as he turned 30% of that grant into a loan. Also, he requires the airlines to fly empty airplanes (at a HUGE operational cost) to predetermined service levels that are illogical during a pandemic.
My airline is receiving enough grant money to pay about 50% of employee salaries through SEP 30. We are flying 10% of our route schedule and have about 10% load factor. Revenues are 1% what they were last year.
As Warren Buffet said once, the way to become a millionaire is to make a billion dollars and buy an airline!
It would make more sense that for say the next 6 months that the airlines shift passengers from all carriers to one on a rotating basis. Fill a plane to 40% capacity so that you can have “social distancing” and not fly empty planes or planes with 1 – 3 people on board. Give the passengers their miles on their booked carrier and try to reduce cost to increase the chances of survival. Some airlines are not going to survive I don’t think.
I’m just here for the peanut gallery comments. Which is fitting, considering this article was certainly written by someone in the peanut gallery. VFTW has become total trash. Tell me one airline in the US not in the same position? Go ahead…I’ll wait.
This entire situation is very very sad. Covid 19 is the most devastating occurrence in our history. It’s nobody’s fault, and nobody knows the future but the good Lord Above. Be grateful and appreciate what you have. The big wings aren’t always honest, if ever, nor correct with how they disperse their funds. So many people are posting that UA routes may be taken over by other carriers. Anything’s possible, but United has always been a very strong company with all of it’s competitors. Who’s to say that AA being the largest in the world, may be the most critical hurt with this Pandemic. Their routes as well as B9, F9 AS, may be as devastated if not bankrupt. It’s anyone’s guess at this time. All airlines must do what it takes to survive. That’s all. Just like 9/11/01. The Industry was totally devastated. Closures, massive cutbacks, furloughs and buyouts. Corona Virus is worse. Good luck to all of the Airline Industry, but I for one would love to see United Airlines survive and rise again.
This another Cheesy click bait article by Gary Hate United Airlines Leff. The fact is all airlines are losing money hand over fist and some, though not United , will go out of business. UA management was being honest by sending out that memo and a lot of other airlines should be , or are sending out memos like it. United will survive this.
Great plan, we can use you while the taxpayers pay your salary but we won’t pay you when that is over.
People out there need to get real
The airports are Empty!
Ual has found a way to cut staff and once october hits PAY! Except for their inner circle. They have already stated to everyone out if the 5 billion
1 and a half is a low interest loan they will use to buy back stock! They just can’t do anything to staff I till Oct 1 when the sh..hits the fan!
Watch big big furloughs and big pay cuts!!!! It’s already been said they plan to reduce staff by 27 percent and start as a SMALLER airline.
Get real airline employee s. You will be let go at first chance.
This all is compounded by not being able to repeal Obamacare.
I like this infographic that summarizes the state of United, https://ibb.co/CQcwTWV
Employees look to be funding the value of managements RSUs. Anyone could have run an airline to only focus on returning to it’s natural domestic market share during the boom times and been successful. Management is around to make long term big decisions for the success of the company and its shareholders not provide short term gains. Taking money from the taxpayers should have voided senior executive contracts as well as the board. Risking the future of the business on the tax payer bailout shows that the vision that the board and executives have is not one for the long term.
I for one definitely appreciate the honesty and respect by both Oscar and Scott..it’s refreshing hearing from upper management being upfront with the front line employees..Let us all stay positive and united..
Title is totally inaccurate. Big difference between being fired and laid off. Also don’t understand some of the comments here, Delta, American or Jet Blue will carve up what’s left of United? Are these airlines not affected by the same loss in revenue? I guess everyone is still flying except on United? People say the strangest and most uninformed things. In any event, United, Delta and American will survive, maybe a bit smaller for a while. Jet Blue, maybe not but I hope they do for the sake of their employees.
What’s the deal with bad mouthing CEO’s so much? Just as airline union members have a contract, so do company officers. CEO’s are hired help just like anyone else. Blame it on the board and our own selves. Yes, I did say our selves. Why, we invest over 25 trillion in 401k’s which in turn invest in these very same companies. We ARE the shareholders these very same CEO’s are trying to make money for. You want both great pay and great 401k returns, now talk about greedy. No different than the CEO’s you talk about.
Hey United,
I’m from the bankruptcy group, we were told a lot of things that just were not true. I can not understand why United can never find a way to say their workers. The workers keep the company going but they are the ones who never benefit for there struggle. AMERICAN airline ran into problems just like United but they found a way not to bankrupt and take their employees health care and pensions, but United could not or did not try to save their employees.
I have been gone since 2008, and in that time what about all the baggage fees that have made? New airplane or remodeling. Seems like they can not ever find away to save the employees. Sorry you guys have to go through this. We thought we were the last sacrificial item.
Good Luck.
I retired from United as a pilot last year, I was flying to China, Japan, Korea and many places in Europe. I left my pension with the airline as it continued to grow and I was going to take it at 70 (over 1.4m) but with the state of all the airlines I’m giving up 400k and taking it now. One good thing is you can non-rev and know you’ll get on.
I just retired last week from UAL. Love the business. I was blessed all of my career. At 64 I’m totally disgusted with the ups and downs of the business but not the business. I don’t blame our leadership, there really is no one to blame but the Chinese communist party. I wish my fellow workers good luck in an industry that will change forever.