Airline and Disney cut credit union jobs
The layoffs and time offs involving 60,000 American workers announced last week will land heavily on the credit unions that serve them.
American Airlines and United Airlines announced on October 1 that they would begin laying off more than 32,000 workers, The Walt Disney Co. announced on September 29 that it was laying off 28,000 workers at American theme parks, many of them Disney had kept a leave with all the health benefits. over the past six months in hopes that the pandemic would recede by fall.
About 65,000 of these Disney employees are members of Partners Federal Credit Union, Burbank, Calif. ($ 2.1 billion in assets, 180,682 members).
Partners, with offices in California and Florida, serves nearly 45% of domestic workers and Disney cast members – Disney’s term for costumed theme park employees, said Michael Terzian, vice-president. -executive chairman / director of member services.
Since the start of the pandemic, Partners has helped 72,000 members with a variety of emergency loans, fee waivers, deferral of payments and other relief services. He waived more than $ 360,000 in fees, granted nearly 3,000 zero-interest emergency loans, and deferred 115,000 consumer and home loan payments.
These financial aid programs will be extended to “members affected by current layoffs from The Walt Disney Company or other employers,” Terzian said. “As the impact of the pandemic continues to emerge, partners will evolve their member assistance program to better serve their members. “
Credit unions with close ties to airlines include:
- Alliant Credit Union, Chicago, ($ 13 billion in assets, 521,484 members), a legacy of United Airlines employees. About ten years ago 160,000 of its 240,000 members were United employees.
- American Airlines Federal Credit Union, Fort Worth, Texas ($ 8.4 billion in assets, 312,338 members).
- Southwest Airlines Federal Credit Union, Dallas, ($ 694.4 million in assets, 58,241 members).
- Delta Community Credit Union, Atlanta, ($ 7 billion in assets, 419,413 members), with approximately 20% of members being active, former or retired employees of Delta Air Lines.
Dallas-based Southwest Airlines has said it does not plan to lay off any employees due to the large number of those who have opted for early retirement or voluntary leave. Atlanta-based Delta Air Lines has also avoided layoffs through voluntary programs.
Delta’s chief financial officer and executive vice president Paul A. Jacobson said on September 17 that the airline had volunteers among 45,000 employees for short-term unpaid leave and 17,000 for early retirement. The leave without pay helped Delta cut its spending on salaries and benefits by 24% in the second quarter.
Planning for the future is tricky, he said. The company expects its flight capacity in 2021 to be down “massive variability” of 25% to 40% from 2019 levels.
Delta Community was founded in 1940 to serve the employees of Delta Air Lines and has expanded its membership base to include anyone living or working in the Metro Atlanta area, in addition to its 150 employer groups which include Chick- fil-A, RaceTrac and UPS.
John Kennedy, assistant vice president of corporate communications for Delta Community, said the credit union is closely monitoring economic events that could affect its members.
Since the onset of the COVID-19 public health crisis, Kennedy said the credit union had made sure counseling services and financial aid programs were in place to help people budget, apply for unemployment benefits, apply for loan payment deferrals and navigate early. retirement packages offered by some employers.
“We are ready to help all members facing financial difficulties such as unforeseen expenses, salary cuts or job loss,” he said. “As COVID-19 continues to impact our economic and physical health, the Delta community remains committed to listening to our members and responding with products and services flexible enough to help them navigate the challenging environment. today. “