Negotiating Committee Update #27

Your Negotiating Committee met with the Company on Friday, July 31. The meeting was planned as a follow-up to earlier conversations about the Voluntary Separation Program (VSP) and how to bring Flight Attendants back from Extended Emergency Time Off (ExTO), when and if needed.

30-second Summary:

• The Union came prepared to discuss the many questions around provisions of the ExTO program, including return to work as well as expansion of the programs, should the Company need. The Company was not prepared to discuss these items.
• The Company presented publicly-available information about how Southwest Airlines and the airline industry as a whole is suffering more than any other time in its history. Though a recovery depends greatly on customer demand, by many different measures, Southwest Airlines is named, by industry experts, as the most well-positioned airline to weather the effects of this current pandemic.
• The Union requested information about the financial impact of the more than 32 percent of Flight Attendants who took ExTO or VSP, and how their contributions have assisted in the viability of the airline. The Company did not have that information.
• The Union has demanded more transparency from the Company as this fast-moving situation progresses, so our membership has the information needed to make decisions. 

Full Recap:

In the last meeting with the Company on July 17, the Company agreed to meet July 31 to discuss provisions around Flight Attendants returning from leaves. There have been many questions surrounding this topic, but the Company was not prepared to discuss those items on Friday. That discussion has been moved to August 17.

Instead, the Company presented your Negotiating Committee with publicly-available information from news articles about the state of the Company and industry overall. As we all know, a recovery will be dependent on a return of passenger demand. Your Union has monitored the effects of the pandemic closely and has created multiple updates and tools for members (including a webinar, furlough video and Q&A), and has advised the Company of our own research and advice for months. The Union’s research mirrors the presentation from the Company today in that while the airline industry traffic is down 75 percent, Southwest Airlines is the most well-positioned airline in terms of cash reserves and forecasted ability to return to profitability once travel demand returns.

The Company said that it was focused on “figuring out how to keep the lights on,” a statement that would appear inconsistent with the fact Southwest Airlines is on record as having approximately $14.5 billion in cash, an amount industry experts forecast could position the airline financially to weather the pandemic longer than its competitors. The Union asked how its members’ contributions – the more than 32 percent of flight attendants who took ExTO or voluntary separation programs—have assisted the Company’s financial picture. The Company was unable to provide that information and mentioned that it was a “cost issue because revenue is not coming in,” rather than a headcount issue.  When asked what more was needed, and how additional funding from an extension of the CARES Act, if passed, would affect the situation, the Company was unable to provide those details. The Company made clear it was not asking for concessions at this period in time, but did ask that TWU Local 556 and other workgroups work with the Company to identify contractual changes that could be implemented if the need arises. The Company noted that once the headcount issue is addressed, the cost of operations would also have to be fixed, which some see as foreshadowing that TWU Local 556 will be asked to consider contractual concessions.

Your Union demanded transparency to best understand the financial picture and be able to make recommendations if further actions are needed to support the Company. The Union referenced information it presented to the Company earlier this year on ExTO programs as recommendations that the Company chose not to take. The Union made clear that its collective goal is also that our airline remains viable during this unprecedented time, keeps serving customers, and eventually returns to profitability, but that the only way to move forward effectively is with increased transparency and teamwork. The Union emphasized that we are interested in making real solutions for Flight Attendants and for the Company, and that if the Company is truly trying to keep the lights on, collaboration is imperative. We conveyed the message clearly that collaboration is a two-way street and cannot simply be a Company tagline, as was the case with formulation of the ExTO and VSP programs. 

Per the Union’s request, the Company agreed to share additional information before the next meeting, which is set for August 17 at 1 p.m.

As TWU Local 556 continues to advocate on behalf of Southwest Airlines Flight Attendants, securing an extension of the CARES Act is incredibly important. This would help avoid furloughs until March 2021. It is strongly recommended that all Members reach out to your congressional representatives to make our voices heard. Please click here to email your representative.