MINNEAPOLIS (AP) -- Employees laid-off by Northwest Airlines will not receive severance payments due to the emergency nature of the job cuts and the industrywide financial crisis, according to the airline.
Northwest confirmed on Tuesday that it will join American Airlines in the policy, which is not shared by alliance partner Continental Airlines.
Houston-based Continental, which cut 10,525 employees last week, said it would pay severance to those workers in accordance with their contracts.
Other major carriers haven't announced their plans.
From the airlines' perspective, paying the typical severance of several weeks pay for thousands of idled workers would represent a huge expense when the industry is worried about running out of cash altogether.
Unions at Northwest are filing grievances against the airline, and the nonpayment of severance payments is one part of those grievances.
Brainerd Dispatch ©2013. All Rights Reserved.