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American Airlines to Begin Furloughing 19,000 Workers After Pelosi Fails to Agree to Deal with Mnuchin

Democrats must be dancing naked in the forest. This is their dream – misery, sorrow, unemployment, hardship.

Tens of thousands of job cuts were announced over a 24-hour period, from banks to oil giants, to Disney.

American Airlines to Begin Furloughing 19,000 Workers After Pelosi Fails to Agree to Deal with Mnuchin

American Airlines said it will begin furloughing 19,000 workers after lawmakers and the White House can’t agree on a coronavirus relief deal.

The major airlines have held off on layoffs and mass furloughs under the terms of a $25 billion payroll support program Congress passed in March. The deal was aimed at helping the airlines cope with shutdowns, quarantines, and a crash in bookings, but at the time it was passed, lawmakers believed demand for air travel would recover in a few months.

The March legislation’s ban on cutting jobs expires October 1. Demand for air travel has recovered a bit since the depths of March and April, but passenger volume remains 70 percent below pre-pandemic levels.

Airline executives say they simply cannot avoid eliminating jobs and furloughing employees without a new round of relief from Congress.

American Airlines Chief Executive Doug Parker said in a letter to employees that he stood ready to reverse the furloughs if lawmakers reach a deal, according to Reuters.

U.S. Treasury Secretary Steven Mnuchin said on Fox News on Thursday that talks with House Speaker Nancy Pelosi had made progress, but no deal has been reached. Democrats have resisted reaching a deal with Republicans, with some Democratic politicians and strategists worried that any deal to boost the economy might help Trump’s re-election efforts. Some liberal activists oppose any deals with the Trump administration under any circumstances.

Majority Leader Mitch McConnell called a proposed $2.2 trillion coronavirus relief package from the Democrats “outlandish.”

President Trump has told Capitol Hill Republicans that he would prefer a bill that spent more than the earlier Republican proposal that was rejected by Democrats to no deal at all.

Airlines spent the last several months furiously lobbying lawmakers for a second round of $25 billion of payroll support that would avoid job cuts until the end of March.

United has said it will eliminate more than 13,000 jobs if there is no deal.

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EDITORS NOTE: This Geller Report is republished with permission. ®All rights reserved.

American Airlines Lays Off Over 1,000 in Florida

Gov. Rick Scott issued the following statement after American Airlines’ announcement that it expects to reduce their Florida workforce by more than 1,000 workers before the end of the year:

“American Airlines’ announcement today is certainly bad news for their company and a setback for hundreds of Florida families. We are focused on growing our economy so every Floridian has access to a great job because we know that having the opportunity to work hard and provide for your children is the heart of the American dream.

“I asked the Department of Economic Opportunity Director Hunting Deutsch to work with the Southwest Florida Workforce Investment Board, the Beacon Council, the Miami Chamber of Commerce and the associated labor unions to immediately develop a plan to transition these highly skilled aviation workers into other jobs. We know that Florida workers want to work, and assisting them in identifying other opportunities in our state is a top priority.”

The Mass Layoff Statistics (MLS)* from the US Department of Labor report that during the period February to July 2012 there have been 470 “Layoff Events” in Florida. 

According to the US Department of Labor, Bureau of Labor Statistics Florida has seen a decline in the labor force. In February 2012 there were 9,297,200 in the labor force. In July that number dropped to 9,269,500. Since February 27,700 left the workforce in Florida. During the same period 26,700 jobs were added and the unemployment rate dropped from 9.4 to 8.8 percent. The decline in the workforce may be reflected in the decline in unemployment and skew the number.

On January 1, 2013 Florida is expected to lose over 79,400 defense and defense related jobs due to mandated cut backs in defense spending, known as sequestration. Other jobs are expected to be lost as mandated cuts of $1.2 trillion are implemented. Defense contractors are required by law to send out layoff notifications beginning this month.

*The Mass Layoff Statistics (MLS) program collects reports on mass layoff actions that result in workers being separated from their jobs. Monthly mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Extended mass layoff numbers (issued quarterly) are from a subset of such establishments—where private sector nonfarm employers indicate that 50 or more workers were separated from their jobs for at least 31 days.