United Airlines has announced a new Voluntary Separation Program (VSP2) that’s open to all Management & Administrative (M&A) employees in the U.S., Guam, and Puerto Rico.
In light of the COVID-19 pandemic, United Airlines will permanently need to shrink their staffing by 30% come October, so has started offering voluntary separation packages. If the airline doesn’t get enough takers, the next step will be an involuntary reduction in force (RIF) starting in October.
United Airlines Management & Administrative Voluntary Separation Program
Flexibility:
- Choice of last day worked in June
- Added benefits for applying early
- Most benefits extend to your spouse/domestic partner
- Exempt from having to use 50% of your vacation by September
Pay and years of service:
- Receive 100% of your pay (at your current reduced work schedule) through June regardless of last day worked
- Receive 33% of your pay (at your normal work schedule) from July through November
- Accrued vacation payout from July through November as supplemental income
- Five-year service restoration from your separation date
Post-separation support:
- Alumni network access and priority consideration for future roles at United
- Unlimited access to job search and placement services
Medical coverage:
- Eligibility for up to 23 months of medical coverage through United
Travel privileges:
- Active pass travel privileges for five years at your current boarding priority
- Option to choose 250,000 MileagePlus miles or 12 one-way positive space leisure travel passes
- Ability to convert into the retiree pass travel program (if eligible)
Bottom Line
Given the current COVID-19 pandemic, airlines are one of the most hardest hit industries as a result forcing massive reduction in staffing. United Airlines is offering this voluntary separation package to its management and administrative team in hopes that they won’t have to involuntary let go of employees in October.
Again, this package only applies to management and administrative team members. Pilots, flight attendants, reservations, airport customer service teams aren’t eligible for this package. We’ll be hearing more news on what the airline plans to offer these employees.
Feel free to share your thoughts below on United’s latest voluntary separation package.Â
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Are they not supposed to keep everyone on the payroll till September 30th as part of the bailout condition? So basically anyone who signs up is only getting 33% of the pay that would have been due in October and November i.e. little over 2 weeks of severance pay plus the other benefits that you outlined. Not a very generous offer IMHO.
Raj, my understanding is that the travel benefits are the big selling point point, especially considering that come Oct 1st, there’s a near certain chance that 30%+ will be laid off. The travel benefits are the main reason these folks put up with working for an airline in the first place so that’s the value, esp if you were thinking of leaving or close to retirement anyways.