Aeroméxico seeks court authorization to fire more employees

05/11/2020

Aeroméxico requested authorization from the Court of the Southern District of New York to carry out the dismissal and indemnification of 1,830 unionized and trusted employees, who would be added to the 766 surcharges that would be removed from their posts as part of the company's financial restructuring.

Aeroméxico seeks court authorization to fire 1,830 more employees. Image: Wikimedia Commons
Aeroméxico seeks court authorization to fire 1,830 more employees. Image: Wikimedia Commons

Aeroméxico requested authorization from the Court of the Southern District of New York to carry out the dismissal and indemnification of 1,830 unionized and trusted employees, who would be added to the 766 surcharges that would be removed from their posts as part of the company's financial restructuring.

If these layoffs are authorized, Aeromexico would have 2,596 fewer jobs, a figure that does not include the reduction of pilots that have not yet been concretized and a number close to that predicted by the aviation consulting firm MIDAS.

In a couple of motions presented before Judge Shelley Chapman, the company of the 'Caballero Aguila' asked to be allowed to fire 855 unionized employees, which would imply paying liquidations of 13.8 million dollars.

"To successfully restructure their business, debtors must realize significant labor savings and (achieve) the right size of their employee base to reflect post-pandemic realities," Aeromexico told the Court.

The airline plans, as part of the application, to liquidate 975 non-union employees, a cutback that would cost the company about $17.7 million.

At the beginning of the restructuring, Aeromexico had around 14,000 workers, including unionized and trusted workers. With this cut, the airline would be reaching a reduction of 18.5 percent in the number of its jobs.

It should be remembered that Aeromexico intends to close the year with 46 fewer aircraft in its fleet, so it is necessary to adjust its workforce to that budgeted figure in order to regain financial viability and lighten the workload.