Democratic senators criticize airlines’ actions after getting coronavirus aid

Sen. Elizabeth Warren and a group of fellow Senate Democrats on Thursday demanded JetBlue and Delta airlines reverse their decision to cut employees’ hours after pocketing a combined total of more than $6 billion in federal coronavirus aid.

The senators told the companies that the moves were “a blatant and potentially illegal effort to skirt your requirements to keep workers on payroll.”

“You should reverse this policy immediately,” they wrote in a letter to the airlines’ executives.

They accused JetBlue Airways and Delta Air Lines of attempts to “evade” the requirements attached to the $935 million and $5.4 billion, respectively, the airlines received from the Coronavirus Aid, Relief and Economic Security, or CARES, Act.

Airlines were among the industries hardest hit by the coronavirus and received a $25 billion bailout in the CARES Act. But analysts expect some airlines won’t survive and others will be forced to lay off more employees when the bailout money is gone.

The airlines are not the only big companies betting blasted for taking taxpayer money to stay afloat.

The CARES Act and other coronavirus relief packages totaled nearly $3 trillion, including nearly $600 billion for small businesses. Some of the money went to large corporations besides airlines, spurring outrage and calls for them to return the money.

“At least one airline receiving CARES Act assistance, United Airlines, has already reversed its decision to reduce the hours of all employees, and instead is allowing employees to volunteer to reduce their hours,” the senators wrote. “You should do the same. And you should not take one penny more of bailout funds unless you are prepared to protect your workers’ jobs, pay and benefits, as intended by Congress in the CARES Act.”

Ms. Warren, a far-left firebrand from Massachusetts, saw her presidential bid fizzle this year. Since the coronavirus started, she has been a leading advocate for workers during the pandemic.

She joined Sen. Jack Reed of Rhode Island in spearheading the letter criticizing the two airlines.

Delta said it disagrees with the letter and is preparing a response.

“Delta’s work hour reductions, which comply with the CARES Act, ultimately protect jobs,” a Delta spokesperson said.

The airline announced this week that it will restore some domestic and international flights in June.

JetBlue said the CARES Act funding covers about 76% of its payroll costs and it needed to make the funds last until Sept. 30 to preserve as many jobs as possible.

“In full compliance with the CARES Act requirements, we put in place a variety of programs with an emphasis on voluntary time off and unpaid leave programs,” JetBlue said in a statement. “Given that our flights in many cities are completely suspended and are significantly reduced in others, there are quite literally no hours for our crewmembers to work in many cases.”

The company noted that its chief executive officer, president, chief financial officer and board of directors all took pay cuts, too.

The senators asked for a formal response to their demands by June 3.

Other Senate Democrats who signed the letter include Edward J. Markey of Massachusetts, Sheldon Whitehouse of Rhode Island, Sherrod Brown of Ohio, Brian Schatz of Hawaii, Robert Menendez of New Jersey and Ron Wyden of Oregon.

The signature line also included former Democrat presidential candidates Sen. Kamala D. Harris of California, Sen. Kirsten E. Gillibrand of New York and independent Bernard Sanders of Vermont.