TWU Local 556 Negotiating Committee Update #33

Your Negotiating Committee took your voice to the table again in a meeting with the Company on October 21, for a follow-up discussion on the Company’s request for concessions and the threat of furloughs. The Union also brought forth ideas that would help avoid both furloughs and concessions without the need to take concessions from our contract.

30-second summary:

• The Company began the meeting by following up on your Committee’s questions from Tuesday as to why it did not accept the CARES Act Loan money. The Company, shifting from the rationale previously provided by Gary Kelly that Southwest did not want to limit the ability to pay dividends or issue stock buybacks, indicated it was a debt/liquidity issue. The Company’s team did, however, confirm that Southwest Airlines is one of only three airlines that did not take the loans offered by the government through the CARES Act.
• The Company explained several cost-saving measures it has implemented in 2020, alleging it has done “everything possible” before requesting pay concessions. Your Union replied that until one more round of voluntary programs is offered, the Company has not done all that it can do.
• Your Union presented to the Company a host of options already available through the Collective Bargaining Agreement (CBA) to reduce costs and find ways to eliminate the need for concessions and furloughs. Through voluntary programs, Flight Attendants could choose ways to help, preserving the Southwest Way and also morale. The Union stressed that the Company would need to be transparent with Flight Attendants on what is needed to achieve the goal.
• The Company will review the options presented by the Union. Further discussion will take place in a meeting the group scheduled for Tuesday, October 27.
• The Company failed, despite a request by your Negotiating Committee on Tuesday, to present any proposal related to onboard sales separate and apart from its previous concessionary proposal. 
• The Union reminded the Company that all negotiating must be done at the bargaining table, rather than directly through Members. The Union made clear Members’ wishes that negotiations go through their elected Union representatives.
• The parties have not reached a tentative agreement. If a tentative agreement is reached, it will be sent to the Executive Board for review and if approved by the Board, it would then be sent to the Membership for a vote. Click here for a  “how we reach a deal” graphic.

Full recap:

The Company began its presentation by following up on questions your Negotiating Committee asked regarding why the Company did not elect to take billions of dollars in CARES Act loan money. The Company explained, for the first time, it had to do with credit and debt rating concerns. When asked about Gary Kelly’s comments to investors about the advantages of fewer restrictions on stock buybacks and dividends in going to the open market rather than taking government loans, the Company responded that his comments were directed toward investors. As a reminder, Southwest Airlines is one of only three carriers that did not take the loans offered through the CARES Act.

The Company said that it is 20% overstaffed Company-wide, and that it would need to save $1.7 billion to correct overstaffing. The Company referenced Gary Kelly’s desire for cuts to be equitable. The Union reminded the Company that Flight Attendants had already stepped up in numbers that exceed our share, resulting in significant savings for the Company already from our workgroup.

The Company then said that it had “done everything possible” before requesting pay concessions from Unions. However, as the Union reminded the Company, Southwest Airlines has not opened another round of voluntary leave and separation programs, a move the Union has recommended in previous meetings. “Until you offer another round, you haven’t done all you can do,” TWU Local 556 President Lyn Montgomery stated in the meeting.

The Union then presented the Company with a variety of options, some already in place contractually, that are available to help solve financial and operational challenges. Those programs could include:

• Job sharing 
• Increasing MRT lines in all bases
• 90-day personal leaves
• Time Away Program
• Emergency Time Off (ETO)
• A second round of VSP
• Long-term leaves without pay but with benefits 

The Union stressed an important point: Voluntary programs allow Flight Attendants to do what they have always done – support the mission of Southwest Airlines – while having the option to choose how to do so in a way that makes sense for them. This is important, as it helps to preserve morale. It’s also imperative, the Union noted, that the Company be transparent and forthcoming about what numbers Flight Attendants would need to meet to achieve the required savings, if such programs were to be made available.

The Company has committed to reviewing the options presented by the Union. Further discussion will take place in a follow-up meeting the group scheduled for Tuesday, October 27. Your Committee asked the Company on Tuesday to present a detailed proposal, separate from concessions, if it believed bargaining regarding onboard sale issues could produce revenue to help offset losses. The Company failed to deliver any such proposal.

Your Union reminded the Company that all negotiating must be done at the bargaining table. The Company was made aware that Members are requesting that the Company stop attempting to deal with them directly in terms of pay concessions, and instead go through the proper channels of their elected Union representatives.

Your Negotiating Committee is holding “Concessions & Furloughs: Part II,” Zoomcasts for Members on Monday, October 26, at 1000 CT and 1500 CT. Please join the team for one or both of these one-hour Q&A sessions, where your Union will address Member questions and discuss the options your Union believes can make a difference both for you and for Southwest Airlines. Be on the lookout for a separate email with information on how to attend.

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 through 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.