U.S. lawmakers consider aid for aerospace workers in COVID-19 bill

US Aerospace

18/12/2020 05:52

By David Shepardson and Eric M. Johnson
    WASHINGTON/SEATTLE, Dec 18 (Reuters) - U.S. lawmakers are
considering providing payroll assistance for aerospace
manufacturers and suppliers as part of a massive $900 billion
COVID-19 relief bill, congressional aides told Reuters.
    In a letter to congressional leaders Thursday seen by
Reuters, 11 senators proposed "the federal government would pay
up to 50% of the payroll costs for up to 25% of a manufacturer's
workforce" for aerospace manufacturers and suppliers.
    The U.S. aviation industry has lost 100,000 jobs and a third
of the global airline fleet remains grounded since the outbreak,
the senators said, adding "an additional 220,000 jobs are at
risk."
    The measure is backed by senators from states hard hit by
the decline in aerospace employment, including Kansas's Jerry
Moran and Pat Roberts and Washington State's Maria Cantwell and
Patty Murray.
    International Association of Machinists and Aerospace
Workers (IAM) President Robert Martinez urged senators to back
the effort to provide payroll assistance "for those aerospace
industry workers most at risk of layoff or furlough due to the
pandemic."
    Martinez and Aerospace Industries Association CEO Eric
Fanning in a joint op-ed Wednesday said without swift action by
lawmakers the United States risks "losing these employees to
other less-impacted industries that might seek their talents."
    In October, Boeing Co  BA.N  told employees it expects to
eliminate 30,000 jobs to reach a workforce of around 130,000
worldwide by end-2021 - 11,000 more than previously discussed.
    Spirit AeroSystems  SPR.N  and General Electric Co  GE.N 's
aviation units have both cut thousands of jobs this year.
    The senators said the "program is estimated to cost $3.8
billion over four months, but save an estimated $3.5 billion in
unemployment costs borne by the states and federal government if
these employees were instead to be furloughed."
    Two congressional aides briefed on the matter said a
proposed $17 billion payroll support program for U.S. passenger
airlines in the $900 billion measure could fall to $14 billion,
as lawmakers may shift some funds to aerospace workers and
airport contractors.
    Of $45 billion designated for transportation in the bill,
$16 billion has now been reserved for aviation. Some
congressional aides think the final bill could designate $1
billion for aerospace workers and $1 billion for airport
contractors, but negotiations continue.
    It is not clear what any final aerospace assistance program
adopted by Congress might look like.
    U.S. airlines will be required to offer more than 32,000
workers furloughed in October their jobs back and keep them on
payrolls through March 31 as a condition of assistance.


 (Reporting by David Shepardson in Washington and Eric M.
Johnson in Seattle; Additional reporting by Tracy Rucinski;
Editing by Kenneth Maxwell)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))