Delta signs union deal while Southwest warns of furloughs

Delta Air Lines (DL, Atlanta Hartsfield Jackson) has announced that it reached an agreement with the Air Line Pilots Association which, subject to the approval of the union’s 13,000 members, will allow the carrier to avoid involuntary furloughs through January 1, 2022. The deal foresees a 5% reduction in monthly minimum guaranteed hours and ensures 30% remuneration to furloughed pilots who do not have to fly. “This was the final step that enabled us to reach our goal of avoiding involuntary furloughs across all of our employee groups in the US. I appreciate the collaboration with ALPA leadership, and the leadership shown by our pilots in ratifying the agreement,” Chief Executive Ed Bastian said in an internal memo. Delta said that it would delay all furloughs to occur on November 28, 2020, until the vote on the new agreement was concluded. The deal with ALPA is not dependent on any further federal support mechanisms. Meanwhile, Southwest Airlines (WN, Dallas Love Field) said that it could furlough over 6,800 workers, which amounts to over 10% of its entire workforce, including 1,221 pilots and more than 1,500 cabin crew if the unions do not agree to new deals. The low-cost carrier is asking the staff to accept 10% pay cuts in return for a no-furlough policy through the end of 2021. Due to the mandatory 60-day notice period, the furloughs could begin in early February 2021. If enacted, this would be the first time ever in Southwest’s history when the LCC is implementing involuntary staff cuts.