CEO says Southwest needs union pay cuts to avoid furloughs

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DALLAS (AP) — Southwest Airlines says its workers must take pay cuts or face furloughs next year. CEO Gary Kelly said Monday that Southwest needs to cut spending sharply or risk losing billions of dollars every three months. Air travel is still down nearly 70% from a year ago, as the coronavirus keeps people from traveling.

Kelly says he won’t take a base salary through 2021, and nonunion workers will face 10% pay cuts in January. He says Southwest needs “reasonable concessions” from union employees or the airline will have to consider furloughs. The Dallas-based airline says it’s never laid off employees in its roughly 50-year history.

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