United Airlines Says 10% of White-Collar Workers Opted for Voluntary Separation

By Kurt Stolz on 13 June 2020
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United Airlines said late Friday that approximately 1,300 employees, approximately 10% of its management and administrative workers, had opted to take a voluntary separation package

The Chicago-based airline first began to announce cuts in its management and administrative ranks in early March.

“We have to acknowledge that there will be serious consequences to our company if we don’t continue to take strong and decisive action, which includes making decisions that none of us ever wanted or expected to make,” said Kate Gebo, the airline’s executive vice president for human resources, in a memorandum to employees in early May.

The pandemic “is forcing us to come to terms with the fact that our airline – and our entire workforce – will have to be smaller than it is today,” she said.

More recently it announced it would pay employees who volunteer full salary through the end of June and 33% of their salary through and paid healthcare benefits through November 30 of this year.  It also offered five years of employee travel benefits and a choice of 250,000 MileagePlus miles or 12 one-way positive space employee travel passes.

Managing directors and those with higher titles would also receive Premier 1K status in the MileagePlus frequent-flyer program.

The fact that a high number of employees opted for the program could mean that the airline will have to lay off fewer customer-facing workers such as flight attendants and gate agents on October 1, the first day the airline can lay off workers in accordance with the terms of its government bailout.

(Photo: Accura Media Group)

Accura News

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