American Airlines says 13,000 workers can tear up furlough notices after passage of COVID-19 relief bill

American Airlines says 13,000 workers can tear up furlough notices after passage of COVID-19 relief bill

10 Mar    Finance News

American Airlines is “happily” canceling over 10,000 furloughs as Congress’ new COVID-19 relief bill heads to President Biden’s desk.

American Airlines CEO Doug Parker and President Robert Isom told employees on Wednesday that after Congress passed the new $1.9 trillion COVID-19 relief bill that includes more funding for the Payroll Support Program, it will be canceling 13,000 furloughs.

“For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled – you can tear them up!” the company said.

American Airlines had previously informed 13,000 employees that they would be furloughed without more federal assistance, according to CNN. Biden is planning to sign the new relief package, the American Rescue Plan, on Friday. It includes $15 billion for the airline industry, NPR notes.

When Biden signs the relief package, American Airlines said this will “extend” its commitment that all U.S. team members will “continue to receive pay and benefits through” Sept. 30. The company also told employees, “if you see your local congressional representative on a flight, be sure to thank her or him for their work this past year and for recognizing the noble work you all do every day.”

White House Chief of Staff Ron Klain quickly celebrated news of the canceled American Airlines furloughs on Wednesday, tweeting in response, “Help is here.” Overall, CNN writes, Congress’ relief bill is “expected to save 27,000 airline workers from furloughs.”

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