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Lawmakers say airline suppliers have fired more than 9,000 despite federal aid



Inside the Gourmet Gate 110,000 square foot facility near Dulles Int. Airport.

Astrid Riecken | The Washington Post Getty Images

Three Democrats from a home on Wednesday killed airline contractors, who laid off more than 9,000 employees despite receiving millions of federal aid for coronaviruses.

Lawmakers have asked Finance Minister Steven Mnuchin to suspend aid to companies or demand the return of some funds.

Congress has set aside $ 32 billion in wage support for a sick airline under the $ 2.2 trillion CARES law in March. Of this amount, $ 3 billion has been set aside for suppliers such as restaurants. The conditions of the aid, which were mostly grants, prohibited the beneficiaries from dismissing workers until 30 September.

“We call on the Treasury to stop providing taxpayer-funded wage support to redundant workers and to recover any funds that have been disproportionately allocated,”

; wrote James Clyburn, DS.C., Chair of the Coronuses for Crisis Crisis Subcommittee, Peter DeFazio for Transport and Infrastructure Representative of the House of Representatives and Deputy Representative Maxine Waters, Chair of the Financial Services Committee, in a letter to Mnuchin.

The Ministry of Finance did not respond immediately to a request for comments.

Lawmakers said they had launched an investigation into supplier assistance, saying they had found at least 12 people who had accepted more than $ 720 million in government support after the release of about 9,300 people.

Among the companies identified by the legislators was the airline provider Gate Gourmet, whose gateway owner group in Zurich did not respond immediately to a request for comments. Lawmakers said the company received $ 171 million and laid off more than 3,500 workers in California, Georgia, Illinois and New York.

“Providing wage support to companies dealing with collective redundancies is not only contrary to the intention of Congress, but also wastes taxpayer dollars by covering the wage costs of employees who have already been laid off,” lawmakers said in the company’s letter.

Join in, a union representing Gate Gourmet and Flying Food employees, another contracting partner who also did not comment immediately, called for aid to be received despite the “punishable” cuts.

“These catering companies should be ashamed of killing tens of millions of dollars and then letting workers support money to take care of themselves by claiming state and federal unemployment benefits,” said Meghan Cohorst, a press release. Secretary Unite Here.


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