(Reuters) – United Airways has supplied workers contemporary offers with pay and well being advantages to go away the corporate, in line with a memo seen by Reuters, a part of a drive to cut back headcount and reduce prices because it awaits a rebound in pandemic-hit journey demand.
Chicago-based United mentioned on Wednesday that it deliberate to supply voluntary go away choices for workers as a part of an effort to chop about $2 billion of annual prices by way of 2023, however didn’t present particulars.
Requested in regards to the providing, a United spokeswoman mentioned: “Given the continued, near-term variations in journey demand, we’ll search for new methods to provide our workers flexibility by introducing voluntary choices that assist cut back prices and will cut back the variety of furloughs of recalled workers.”
United supplied a sequence of voluntary exit packages for frontline workers final yr however they didn’t embrace pay.
It ended up furloughing round 13,000 workers final October when an preliminary spherical of payroll assist for airways that banned job cuts expired.
It introduced again these employees following a contemporary $15 billion in payroll assist for the sector late final yr, however warned the recall might be “non permanent.”
The brand new voluntary applications embrace totally different choices centered on pay or well being advantages. Every is tailor-made by age and years of service, in line with the memo.
(Reporting by Tracy Rucinski; Modifying by Chizu Nomiyama/Mark Heinrich)
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