US TRADE unions have slammed the use of a “scare tactic” by airline bosses who told 7,000 Southwest Airlines employees on Thursday that they could lose their jobs if they won’t take hefty pay cuts.

Southwest, the fourth-biggest airline in the US, has so far avoided mass layoffs over the coronavirus pandemic, instead encouraging thousands of staff to take early retirement or “buyouts” — where an employee is let go with a negotiated severance package such as continuing pay and benefits for a defined period.

Its labour relations official Russell McCrady said it had issued Worker Adjustment and Retraining (Warn) notices because of “lack of meaningful progress” in talks with unions over its proposed 10 per cent pay cut in return for no furloughs next year.