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United Asking Employees to Quit Now

Interesting approach by the airline. At least they are telling it like it is: they don't expect demand to be there.

https://www.cnn.com/2020/05/04/business/united-voluntary-separation/index.html

One thing not mentioned is if you quit your job, you don't get unemployment. If I was an employee, I would wait until I was told my services were no longer needed unless I had a definite job lined up.

EDIT: Additional info: All executives and office staff are being told they must take at least 50% of their remaining vacation time and at least 20 unpaid days off by the end of September. Staffing cuts are looking to be 30% across the board once October gets here, barring any miraculous return of passenger loads.

Posted by
6380 posts

"You, alone, can decide if a [Voluntary Separation Program] works for you and your family."

Would have be helpful if cnn had provided info on what the 'Voluntary Separation Program' is

Posted by
1666 posts

I know a veteran flight attendant who works for United. Their situation is grim. I also know a Delta pilot who was promoted to Captain last year. He's OK now, but might be furloughed in September.

Posted by
6885 posts

So according to the bailout terms, they need to use the money to pay employees. The choice is to leave voluntarily now, with some sort of severance, or you’ll be bounced in October, the first month United can fire people, without a package.

Posted by
3436 posts

I'm sure there are multiple options for the Voluntary Separation plans so it was not possible to list all of them in the space available for the article. Many will never be made known publicly because these offerings have confidentiality restrictions associated with receiving the offer. They will depend on what type of job each group of employees have, where in the world they work, how long they have been with the company, and many other variables. It could be early retirement programs for those with enough seniority to qualify. I could be a set number of months of pay and continued benefits. It could be a swift kick on your way out the door. It just depends on how generous the airline is feeling. My opinion is those deciding what the programs will be are probably not feeling very generous because they will be next. And the furloughs and firings will begin just as soon as they can legally do so if history is any indication of future actions. It is a difficult decision for the employees to make and not simply a coin toss to decide if hanging on until the end or taking the offer is best.

Posted by
6223 posts

It really depends if they're eligible for severance pay, buy-outs, and any other alternatives where they get a lump-sum upfront. If severance $ is expected to be > unemployment $, then that may factor into someone's decision making.

Posted by
487 posts

I truly feel for everyone involved - these aren't easy decisions for anyone and seems like a "lose-lose" for everyone. On the brighter side, when the world returns to normal (and I believe that it will) new opportunities will arise... but until then, it's going to be a very painful and bumpy ride.

Posted by
5354 posts

Him... as a taxpayer whose money is going to the stimulus grants to big corporations based on their promises not to lay off people, I wonder whether I'm getting my money's worth from this shell game.

Posted by
3436 posts

Well, at least the airline is paying the staff their salary through September and not forcing everyone into the unemployment line yet. But is this really a good use of taxpayer money? Depends on who is deciding.