Report by : Gan Yung Chyan, KUCINTA SETIA
According to a report from Japan’s Kyodo News on 14 October 2020, All Nippon Airways proposed to its labour union the emergency labour fee reduction plan. In addition to reducing the basic salary and various allowances by 5% from January 2021 at the latest, it also proposed to reduce the original 30% of the welfare. The employee's burden of pension insurance premiums has been increased to 50%.
The plan pointed out that under the covid epidemic, passenger demand is temporarily difficult to recover, "the company is facing a survival crisis", and calls on employees to cooperate.
According to reports, All Nippon Airways has raised severance pay for approximately 15,000 employees and called for voluntary resignation from 14 October. For cabin crew over 30 years old and ground crew over 40 years old, support will be provided for their reemployment. There is no target for the number of recruits. The plan also proposes a support system that preserves the possibility of future return to work and re-employment for employees aged 35 to 49. The recruitment period is until 18 December, and the scheduled resignation date is the end of March 2021.
The plan also proposes to expand interest-free loans that are only used for repayment of mortgages and further utilize the system of suspension of business for any reason.
According to the report, it was previously learned that ANA plans not to pay this winter bonus. Coupled with the reduction of monthly salary and the implemented summer bonus halving, it is expected that the annual income of employees will drop by an average of 30%.
The report also said that in addition to labour costs, All Nippon Airways is also cutting other costs and will announce its business structure reform plan in October.
ANA's parent company ANA Holdings reported a net loss of 108.8 billion Yen in the first quarter of fiscal 2020 (April to June), the largest loss since the fiscal year 2003 began to announce its quarterly report.
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