American Airlines announced today that it will begin issuing Notices of Worker Adjustment and Retraining (WARN) to 25,000 employees. This occurs when government support for the industry will run out on September 30 without a clear appetite for the second round of industry support.
Issue WARN notices
In a July 15 letter to employees seen by Simple Flying, American announced that it was beginning to issue WARN notices to unions and team members represented in some states. American will send out these notices as it plans to have an excess staff of about 20,000 employees.
WARN notices are federally required requirements that inform employees of possible licenses. In addition to this, American offers employees additional licenses or early departure programs, usually some of the best deals the airline will provide amid the current crisis.
Who receives WARN notices?
The 25,000 notices will be divided into the following working groups:
- 2,500 pilots (18% of the working group)
- 9,950 flight attendants (27% of the working group)
- 3,200 maintenance and related personnel (22% of the working group)
- 4,500 fleet service personnel (26% of the workforce)
- 2,900 passenger service personnel (30% of the workforce)
- 1,000 in the reserve team (23% of the workforce)
- 175 in office (36% of the workforce)
- 50 flight crew training instructors and simulator pilot instructors (15% of the working group)
- Working group of 10 flight simulator engineers (7% of the workforce)
Just because American sends 25,000 WARN notices doesn’t mean that all 25,000 employees see a guaranteed permit. Before that, the airline will work with its unions to reduce permits by offering extended licenses and early departures. Also, the travel demand situation may change, so the airline would need a smaller permit than those numbers.
Earlier this year, CEO Doug Parker has emphasized the need for the airline to enter the fall ready for next summer. While American has tried to avoid the “old airline playbook” on permits, the airline will likely have to resort to those measures in this unprecedented crisis.
While the pilots are looking at some permits, these employees are expensive to train and sometimes difficult to find. That’s why Doug Parker has emphasized that needing a pilot in June of next year means keeping them in the fall. Most of the WARN notices targeting pilots are likely because the airline decided to recall planes like the 757, 767, A330, and E190. Other retirements are also likely to continue given reduced demand. Also, some planes like the A330-200 will be parked for a long time.
Employee Options
American has worked with unions to give frontline working groups two options: extended leave or early departure. The extended leave program would see employees take 15, 18, or 24 months of leave with continuous medical coverage, unpaid travel privileges, and partial payment for some employees.
The early departure program is for employees with at least ten years of job security. Includes up to $ 150,000 in a “Retiree Health Reimbursement Agreement” for team members eligible for retirement from the 65-point plan. There will also be some positive space travel.
For employees with less than ten years of occupational safety, there will be an early departure program with continuous medical coverage and travel privileges without a right of turn for a specified period of time. More details would be available to affected people.
Pilots are excluded from the above options due to the mandatory retirement age and required training cycles on all aircraft. Pilots must anticipate a separate license and early departure program.
What do you think of these WARN notices? Let us know in the comments!
