ATW Daily News

Midwest to cut 40% of workforce

Tuesday July 15, 2008

Midwest Airlines and its Skyway subsidiary will reduce the workforce by 40%, equal to approximately 1,200 employees, as a result of its decision to remove its MD-80s from service this fall and in anticipation of "other schedule adjustments to be announced," it said yesterday.

Midwest announced 109 layoffs and a 2.5% schedule reduction in April, the MD-80 groundings in June and wage cuts earlier this month (ATWOnline, July 4). More was needed. "In order to successfully restructure, there is no way to avoid deep and painful reductions to our current workforce," Chairman and CEO Timothy Hoeksema said. "We will go about this task with compassion and dignity." He is taking a 40% pay cut effective today.

Midwest said affected employees will be notified beginning today and that the reductions will come via furloughs or position elimination and will be spread throughout the airline. Most will occur "no later" than mid-September. It also is negotiating concessions with the Air Line Pilots Assn. and the Assn. of Flight Attendants.

by Brian Straus

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