American Airlines prepares to send layoff notices to workers

American Airlines warns unions that layoff and leave notices will be sent to workers as soon as the airline lays the groundwork for possible job and leave cuts in the fall.

Fort Worth-based American Airlines has been telling its employees that the company is over-staffed by up to 20,000 workers and will have to cut its workforce by the fall. The COVID-19 pandemic has resulted in a massive drop in passenger traffic, and airline executives say passenger traffic is expected to be 30% lighter this fall.

American Airlines began notifying unions that employees may start receiving WARN notices soon, but that does not necessarily mean that they are scheduled to be fired or suspended. The Worker Adjustment and Rehabilitation Notification Act of 1988 requires companies with 100 or more employees to notify plant closings or mass layoffs 60 days in advance. Their goal is to give employees time to potentially find a new job or train for new positions.

“This does not mean that you will be without permission. This is a legal requirement that American is taking to preserve its options in the future, ”said a message to its members of Communications Workers of America and International Brotherhood of Teamsters, which represents passenger service workers at American.

American has already started firing 5,000 corporate administrative and support staff.

Airline pilots have also been told that WARN notices are coming, according to a city auditorium with Chip Long, managing director of flight operations at American Airlines.

The union representing the more than 30,000 mechanics and maintenance workers also told employees to wait for the WARN notices.

“The reality is that we are in a very unstable and worrying time,” said a letter from the leaders of the joint association of the Transport Workers Union and the International Association of Machinists. “Although there are certainly more passengers flying today than at the end of March, this industry still operates at a fraction of 2019 passenger levels.”

American Airlines declined to comment.

American is in the midst of offering long-term purchasing and licensing programs to employees who are willing to voluntarily leave their jobs for at least three months.

Thousands have already volunteered for vacations or purchases, but American Airlines has more than 130,000 workers, including its regional subsidiaries.

“We cannot carry as many additional people and survive this,” said Doug Parker in an auditorium shared with employees in early July.

Parker said the company still expects to have zero layoffs or permits by the fall. But that may depend on how many people say goodbye and buy deals.

American has more workers than any other airline in the world, almost twice as many as Dallas-based Southwest.

Last week, Chicago-based United Airlines issued WARN notices to 36,000 employees.

On Monday, Southwest Airlines CEO Gary Kelly said the company needs to triple the number of passengers it has by the end of the year or face the possibility of laying off or laying off workers.