COVID-19 Related Impacts to Employees
John Aitken, A.A.E. January 24, 2022
Director of Aviation Item d(2)
1 Passenger Traffic
2 -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Enplanements by Month
2019 - 2021
2019 2020 2021
Average Daily Enplanements
3 -
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Daily Enplanements by Month
2019 - 2021
2019 2020 2021
-
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Daily Enplanements by Month
2019 - 2021
2019 2020 2021
Average Daily Enplanements
4 21,440
621
-
5,000
10,000
15,000
20,000
25,000
Apr
Average Daily Enplanements
April, 2019 vs 2020
2019 2020
-97%
Average Daily Enplanements
5 -
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Daily Enplanements by Month
2019 - 2021
2019 2020 2021
21,440
621
7,763
-
5,000
10,000
15,000
20,000
25,000
Apr
Average Daily Enplanements
April, 2019 - 2021
2019 2020 2021
22,376
4,130
13,391
-
5,000
10,000
15,000
20,000
25,000
December
Average Daily Enplanements
December, 2019 - 2021
2019 2020 2021
-82%
-40%
Enplanements remain below 2019
10% 6%
-60%
-97% -94%
-86% -81% -82% -80% -79% -77% -81% -82% -79%
-70%
-64%
-56%
-46% -43% -48% -46% -41%
-35% -40%
-100%
-80%
-60%
-40%
-20%
0%
20%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Enplanements Compared to 2019
2019 vs 2020 2019 vs 2021
6 Establishments Impacted*
• Food and Beverage
• Retail
• Ground Handlers
• Rental Cars
• Airport Lounges
• Airlines
• Ground Transportation
• Federal (TSA and CBP)
* Select List
7 Actions taken
• Many employees furloughed/laid off
• Concessionaires
– Temporarily closed many establishments
– Modified hours of operations (chasing flight
gates)
– Modified menus (limited items)
– Maintained a seniority list for rehiring
purposes
– Continued to pay health insurance for 3 or
more months
8 Concessionaires Recovery
• By March 2021
– Offered to rehire everyone on the rehire list
– Contacted people on the rehire list multiple times:
• By phone and certified mail
• Positions were held for 30 days
– Offered incentives to return:
• Immediate health care (no waiting period)
• COVID-19 bonuses
• Food vouchers for free meals
9 Challenges
• Concessionaires (especially F&B) continue to have
problems finding enough employees (need to hire
over 100 more in 2022)
• Some employees:
– Are not ready to return to work
– Moved out of the area
– Found other jobs
– Continue to have family care issues
– Remain concerned about the pandemic
• Unemployment Rate in Santa Clara = 3.2% (Nov 2021)
10 Food and Beverage
• Significant numbers of employees remain
unvaccinated
(from November/December, before Omicron)
• Staffing shortages cause F&B establishments:
– To Remain closed
– Have shorter hours
– Have modified/limited menus
11 Airport Living Wage Ordinance
(ALWO)
12 Airport Living Wage Ordinance (ALWO)
• Requires that covered employees earn the
following minimum compensation rates:
– $17.30/hr, health benefits offered*
– $18.44/hr, health benefits not offered
* To qualify for the lower rate, the employer must either (a) offer the covered employee an employer-sponsored health insurance plan for which the employer pays at least 50% of the cost, or (b) pay at least 50% of the cost of the covered employee’s health plan. 13 Covered Employer
• Covered Employers (those employers that are
covered by the ALWO) mean any person,
corporation, partnership, limited liability
company, joint venture, sole proprietorship,
association, trust or other entity conducting
commercial activity at the Airport
• Employers that are party to a collective
bargaining agreement are, for the most part,
exempt from the Airport Living Wage Program
14 Examples
• Potential businesses subject to ALWO:
15 – food and beverage concessionaires
– retail concessionaires
– parking lot managers
– janitorial, custodial and facility maintenance services hired/employed by a third party
– ground transportation management services
– security services
– wheelchair escorts
– curbside passenger check-in and baggage check services (sky caps) – general aviation maintenance
– baggage and cargo handing
– aircraft cleaning services
– aircraft tow-in/push back serves
– water and lavatory services
– aircraft and vehicle fueling services
By the numbers
• 71 firms at airport
• At least 1,871 workers*
– At least 800 workers* are under some alternative
wage agreement, including collective bargaining
agreements or prevailing wage agreements.
These individuals are not covered by the ALWO
compensation components.
* Organizations with a collective bargaining agreement are not required to provide a listing of employees, therefore the total number of people under a collective bargaining agreement is unknown and, in all likelihood, more than the number provided above 16 ALWO Review
• Annual Review
– Each January all businesses conducting commercial
activity at the Airport must submit documentation to
confirm their compliance with the ALWO, including:
• Employee compensation reports
• Subcontractor listings
• Compliance with training standards
– Through this review process and a biennial audit
process, Airport staff is able to confirm compliance
– During the last review process, all firms were found to be meeting their ALWO obligations
17 ALWO Compensation Comparison
18 Jurisdiction Compensation Requirements
2021 2022
Federal Government $7.25/hr Minimum Wage $7.25/hr Minimum Wage State of California $13.00/hr for firms w/ 25 or less
$14.00/hr for firms w/ 26 or more
$14.00/hr w/ 25 or less
$15.00/hr w/ 26 or more
City of San José $15.45/hr $16.20/hr
Sacramento Airport Follows the State of California
Oakland Airport $15.30/hr w/ health benefits
$17.56/hr without health benefits
Updates on July 1
San José Airport Living
Wage
$17.30/hr w/ health benefits
$18.55/hr without health benefits
Updates on July 1
San Francisco Airport $19.05/hr Updates on July 1
San José City Living Wage
Policy
$24.07/hr w/ health benefits
$25.31/hr without health benefits
City service contracts in 18 covered categories
Updates on July 1
Contact Info
• Any employee with ALWO questions,
complaints, or concerns can contact:
Magdelina Nodal
Senior Analyst, Airport
408.392.3673
[email protected]
19