labor lawAdivision of labor law center

Last week, the U.S. Department of Labor announced a grant exceeding $5.2 million to aid displaced airline workers in the 50th state.

Gas prices hit an average of $4.04 nationwide this month. The increase in fuel cost – and a corresponding in food prices – is adversely affecting a number of industries. But airlines are among those hardest hit. Several smaller airlines have gone out of business this year, while even the giants are struggling. United Airlines recently announced plans to layoff more than 1,600 employees. All major airlines are decreasing services to travelers and increasing prices. United and American Airlines recently announced that they will charge travelers $15 to check one bag, and an additional $50 to check a second bag, even on domestic flights. Northwest Airlines recently announced that it will eliminate snacks on all domestic flights. Summer is a traditionally busy period for airline travel to Hawaii and across the nation. However, with fuel prices high, many families are choosing stay-at-home vacations or “staycations” instead of expensive travel. Those who are traveling are not choosing Hawaii, traditionally a very expensive destination because of the long distances involved.

ATA Airlines and Aloha Airlines have announced cutbacks affecting about 710 employees in Honolulu. Aloha Airlines announced on March 31 that it was going out of business. The airline immediately ended passenger service and laid off workers throughout the state. The airline issued WARN notices or Worker Adjustment and Retraining Notification information. Normally WARN notices must be issued well in advance, however, this requirement is waived when a company goes out of business. Aloha was a budget airline providing both passenger and freight service to the Hawaii Islands and the west coast.

Just 5 days later, on April 4, ATA Airlines issued similar notices to workers. ATA provided budget service to a number of locations, including Chicago and Los Angles, as well as Hawaii.

The U.S. Department of Labor will immediately release $3,269,812 to assist displaced airline workers. Additional funds will be released in days to come.

“This grant will provide immediate assistance to Hawaii residents that have been affected by these layoffs,” said US Secretary of Labor Elaine L. Chao. “The state of Hawaii is working hard to ensure these workers have access to important re-employment services that will help them get back to work as quickly as possible.”

The grant, awarded to the Hawaii Department of Labor and Industrial Relations, will provide affected workers with a range of re-employment services, including skills assessment, individual career counseling, and career and occupational skills training.

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