![Southwest Airlines Wants Employees To Take a Pay Cut To Keep Jobs](http://townsquare.media/site/87/files/2020/10/GettyImages-1227230304.jpg?w=980&q=75)
Southwest Airlines Wants Employees To Take a Pay Cut To Keep Jobs
They were one of the only airlines NOT to furlough workers when the pandemic started in March.
CNN has obtained a company memo from the Chief Executive Officer of Southwest Airlines, Gary Kelly, telling employees that revenue is down by 70% and that "we all need to sacrifice more."
"For our union contract employees, I promised you I would let you know if and when we decide to approach your union representatives for concessions. Because of the inaction of the federal government, and the ongoing losses, that time has arrived."
In the memo, Kelly said that company executives will take a 10% pay cut in 2021 and are asking employees to do the same. The memo also places blame on the government for not extending the Payroll Support Program, saying that it's "desperately needed" to prevent worker furloughs.
"If we're so fortunate to have the federal government act and extend the PSP through next March as has been proposed, then all these pay-cut efforts will be discontinued or reversed."
Kelly has also said that there will be no worker furloughs in 2020, but stated that the company "simply cannot afford to continue with the conditions required to maintain full pay and employment."
United and American Airlines announced last week that 32,000 of their employees are now on furlough. Southwest has stuck to their pledge of no furloughs, but the pay cuts appear to be the alternative.
This sucks all around. Gotta give credit where it's due; Southwest has managed not to furlough anybody. But this will definitely affect the food on the table for employees.
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