40,000 Airline Workers in Danger of Losing Jobs if Congress Not Able to Reach a Deal

Some 40,000 airline workers may either lose their jobs or get furlough if the Congress is not able to reach a bipartisan deal to pass a second COVID-19 relief aid package.

This because the $25 million federal grant for the airline industry that was part of the Payroll Support Program (PSP) of the CARES Act has already run out on September 30.

Airline companies were given the grant provided that they agree not to lay off their employees since the COVID-19 pandemic hit through to September 30.

The 40,000 airline workers such as flight attendants, gate agents and baggage handlers have been able to stay on by getting partial pay through the $25 million grant.

The Heroes Act 2.0 passed by the House Democrats on Thursday, October 1, included the key provisions of President Donald Trump and his GOP allies which is the $25 billion to stave off thousands of layoffs at passenger airlines and another $3 billion for airline contractors.

However, the Senate Republicans said that the bill which the Democrats had already pared down from $3.4 trillion to $2.2 trillion would never get their approval giving the 40,000 airline workers a bleak future.

Last month, the United Airlines had urged Treasury Secretary Steven Mnuchin to restart negotiations with House Speaker Nancy Pelosi for another COVID-19 relief aid package legislation to be passed.

Otherwise, the airline will be forced to furlough more than 16,000 of its employees whom they consider their family by October 1.

United Airlines CEO Scott Kirby had said that aside from preventing the furlough the continuation of the PSP grant will also give the airline industry time to recover without losing any of their employees to furlough.

The rest of the 40,000 airline workers will be coming from the American Airlines and the Delta Airlines who have earlier announced that their funds are also running low and will be forced to cut their respective workforce.

Without additional federal aid, American Airlines said that it would have to cut 19,000 jobs. With that, they will become 30 percent smaller than before the COVID-19 pandemic hit.

Delta Air Lines, on the other hand, had announced its plan of furloughing 1,941 pilots by October unless it reaches an agreement with the union to lower costs.

Pilots, however, will be the least affected among the 40,000 airline workers as airlines would rather not spend on training new pilots once they will be able to hire them again.

Hardest hit will be the flight attendants as they number to more than 25,000 should the layoffs and furloughs start this week.

There is hope though for the 40,000 airline workers as talks between Mnuchin and Pelosi were continuing unlike like August when it got stalled.

If Congress will reach a deal in a few days, American Airlines CEO said they are willing to reverse the course.

United Airlines, for its part, has appealed to the elected leaders to reach a compromise and save the jobs of 40,000 airline workers.

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