China Airlines pay cut program ends retrospectively
Taipei, July 7 (CNA) China Airlines (CAL), one of Taiwan's major carriers, announced on Tuesday that a temporary pay cut program introduced at the start of May to tackle fallout from the COVID-19 pandemic has ended earlier than originally planned.
Based on an agreement with the airline's labor union earlier the same day, union president Liu Hui-tsung (劉惠宗) confirmed that the 15-25 percent pay reduction for all airline employees in May and June was ended retrospectively on June 30.
Following the ending of the temporary pay cut, CAL staffers began to receive their normal pay from July 1, Liu said.
According to Liu, CAL Chairman Hsieh Shih-chien (謝世謙) agreed to end the pay cut program earlier to thank CAL employees, who he said had done a great job transporting relief materials around the world, since the start of the coronavirus pandemic.
At a June 23 online shareholders meeting, Hsieh said the company would not considering layoffs even after the pay cut program.
Citing estimates by the International Air Transport Association (IATA), Hsieh said the global aviation industry will see a fall in revenue of US$500 billion this year.
CAL has seen its passenger load factor plunge to 3-4 percent of regular capacity, with monthly revenue falling to NT$400 million in April and May, Hsieh said.
While passenger volume remains extremely low, the airline's 18 cargo planes have boosted cash flow, Hsieh said, racking up NT$7 billion (US$236.7 million) in revenue in April and NT$9 billion in May.
As to the restoration of flights, CAL said future developments will depend on measures taken by other countries to open up their borders.
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