WASHINGTON — Two airline giants said that they would cancel tens of thousands of planned layoffs because of aid earmarked for them in the $1.9 trillion stimulus measure passed by Congress this week, an early sign of job losses averted by the landmark package.
Scott Kirby, CEO of United Airlines, which had warned employees about 14,000 layoffs last month, said in a social media post that Congress’s new funding for airlines would allow the workers to receive their paychecks and health care through September.
American Airlines said it planned to rescind notices it sent last month to 13,000 employees about coming layoffs.
“Those are happily canceled — you can tear them up!” Doug Parker, American’s CEO, and Robert Isom, its president, wrote in a note to employees. “We are grateful for the support of our government leaders and their continued acknowledgment of all you do.”
The $1.9 trillion stimulus package Congress passed on Wednesday, which was signed by President Joe Biden on Thursday, delivers payments for middle- and lower-income households and expands unemployment benefits for workers. It also sets aside hundreds of billions of dollars for cities and states, school re-openings, vaccine distribution and testing and other health-care funding.
Unlike previous stimulus efforts, Biden’s relief package includes far less for companies, but it does include $65 billion that is directed to range of hurting industries including restaurants, aviation, live entertainment and tourism.
Chip Rogers, president and CEO of the American Hotel and Lodging Association, called it a vital step forward that will help small businesses and protect jobs. He said that the pandemic has wiped out 10 years of hotel industry growth, noting that leisure and hospitality accounted for about 39% of the jobs lost during the pandemic.
”We applaud President Joe Biden for recognizing that small businesses need more help to get through this difficult time and we urge Congress to act immediately,” he said in a statement. “This legislation will serve as a critical lifeline for hotels and other businesses that have been decimated by the pandemic.”
Annemarie Strassel, a spokeswoman for Unite Here, a union represents 300,000 people in industries like hotels, airports, transportation and food service, said that they had not been informed about any planned layoffs being canceled as a result of the stimulus package. About 70 to 80% of union remembers remain out of work, she said.
But members will benefit from several measures in the law, including health care coverage for people who lose their coverage through work, $1,400 stimulus checks, child tax credits and unemployment insurance bonuses, said Strassel.
”The real benefit we see is the immediate and direct relief that millions of people, including hundreds of thousands of out-of-work hospitality workers, will experience as result of this law,” she said.
The bill sets aside $15 billion for airlines and airline contractors, which have struggled mightily with sagging demand for travel during the pandemic, to keep employees on the payroll through September.
Boeing, which had said it would pare its workforce down to about 130,000 jobs by the end of this year, a drop of about 30,000 positions since the beginning of 2020, declined to say whether the aid would help avert any of the layoffs, but said it was grateful for the package.
”This legislation will allow airlines and aerospace suppliers to keep employees on the job and ready to help drive a strong economic recovery, with travel continuing to serve as an engine of the global economy,” the company said in a statement.
The bill also provides $8 billion to U.S. airports and some $30.5 billion in grants to other transit agencies. Amtrak, which is scheduled to receive about $1.7 billion, said Wednesday that hundreds of furloughed employees could be called back to work as early as next month.
The aid provisions have also drawn some unlikely support. Republican Sen. Roger Wicker of Mississippi voted against the legislation Wednesday but hailed the relief for restaurants it included. “This funding will ensure small businesses can survive the pandemic by helping to adapt their operations and keep their employees on the payroll,” he said on Twitter.
Other Republicans have continued to fight against it. Sen. Rick Scott of Florida on Wednesday urged cities and states to return the $350 billion in aid they are slated to receive, despite the popularity of the measure and the pleas from many local leaders, including Republicans, for the funding.
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