The US aviation contractors laid off thousands of workers due to delays in payroll aid from the US Treasury that was meant to protect jobs, an investigation by a US House of Representatives sub-committee found. Under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), companies in the aviation sector were granted funds to cover six months of their payroll as the Covid-19 pandemic prompted a precipitous decline in air travel. The legislation banned any job cuts through September and requires the US Department of Treasury to begin distributing funds to eligible companies within 10 days of the law’s approval on March 27. But an investigation by the House Select Sub-committee on the Coronavirus Crisis found that top contractors did not receive the money until months later, resulting in more than 16,500 layoffs and furloughs at 15 companies, more than 15% of the aviation contractor workforce.
Published in The Express Tribune, October 11th, 2020.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ