Airline Pay Cuts across the Globe
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Airline pay cut is a reduction in an aircrews’, Pilots or an employee's salary. Pay cuts are often made to reduce layoffs while saving the company’s money during a difficult economic period. A pay cut may be temporary or permanent, and may or may not come with a reduction in responsibilities. As long as you can make it work financially, a reduction in pay may be well worth being able to work at home, have a work schedule that allows you to spend more time with family, or give you more time to spend on important interests and hobbies. On the contrary it’s prone to land you with financial issues due to shortage of salary if you cannot make it work financially.
Reasons for Pay cut:
· Many people see pay cut as the lesser evil during tough times when organizations are faced with the choice of reducing wages, or letting employees go.
· In case of difficult economic periods or challenges to the company, it chooses to cut down on their employees’ salaries.
· Many have grown tired of their current industry or want to do something more creative. Changing careers is often necessary if your goal is to find work that's more fulfilling, but it often means taking a pay cut in the process.
· Many people struggle to achieve a reasonable work-life balance and thus, a pay cut could be their ticket to a more manageable schedule. The employer will be willing to be flexible and let them cut down to 32 hours of work per week so that they have ample time to tend to their family and household needs but they need to give up 20% of their salary to make it happen.
Pay Cut is generally calculated by:
Dividing the percentage of increase or decrease of salary by 100 to convert to a rate. For example, if you have a salary increase of 4.5 percent, divide 4.5 by 100 to get 0.045. Conversely, if you have a salary decrease of 3.4 percent, divide -3.4 by 100 to get -0.034.
Types of pay cut:
· Many government employees are being asked or forced to work fewer hours or take unpaid vacations.
· Companies tend to cut variable pay such as bonuses will be hit hard if the economy remains in bad state through the year.
· Companies may cease to contribute to retirement plans, resort to lesser tuition reimbursement and employees’ monthly contribution for medical benefits may rise as well.
Percentage pay cuts by different Airlines:
· Delta Airlines CEO Ed Bastain announced
that he cut his salary by 100 percent. All Delta officers will take a 50 percent pay cut through June 30, with directors and managing directors taking a 25 percent cut during the same period.
· Kuwait Airway’s entire management team has taken a 50% pay cut since February, while the CEO isn't receiving a salary at all, he said.
·
· Emirates have
implemented a 25% to 50% salary reduction for most employees.
· British Airways pilots face 50% pay cut while top executives give up 20% of their salaries.
·
· Southwest Airlines CEO Gary Kelly will take a 10 percent pay cut.
· Air Asia’s Founders will give up their
salaries, while its staff has agreed to take up to 75% pay cut as the budget airline grapples to manage the impact of the coronavirus pandemic.
· GoAir are taking 50% pay
cuts to control costs as the Coronavirus crisis cripples travel businesses in India and the world. The top leadership has stepped forward and volunteered to go for 50% pay cut with immediate effect.
· Indigo will implement salary cuts of up to
25% across its workforce, following global airlines that have been forced to take such steps in the Coronavirus crisis. IndiGo’s CEO Ronojoy Dutta said he will take a pay cut of 25% , while other executives above the senior vice president level would take cuts of 20%; vice presidents and pilots would take a 15% cut, while others including cabin crew would take a 5%-10% deductions.
· SpiceJet has implemented a 10-30 percent
pay cut for all its employees across top and mid rung levels. However, the airline has assured that its employees in the lowest pay grades will remain unaffected by the decision. The airline’s Chairman and Managing Director, Ajay Singh, has decided to take the highest cut of 30 percent in salary.
· Air India is considering a 5 percent pay cut
to its employees as it faces a huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations except for the U.S., Canada, and a few other markets, to the ground.
Solution to Pay Cuts:
· Employees should be proactive and look for ways to help their employer cut back without cutting jobs or pay. This can be done through discussions with peers and fellow colleagues after office hours.
· Employees can speak with an accountant to see how they can maximize the benefits and pay check they have, perhaps by increasing their contributions to cafeteria plans or by raising deductibles.
· Employees should try to adjust their reduced hours and consider working for a smaller company as they may experience more transparency and have ample warning if things are going south. They should also use mandatory time off to look for another job.
· Airlines should provide its employees’ with alternatives to do while experiencing pay cuts. They should provide them with free online courses to enhance the skills and knowledge of their manpower during such crisis so that the employees’ will feel that they are able to learn and explore more even though they are experiencing a pay cut. Hence, this decreases oppositions to the management by its employees.
· Instead of reducing costs through pay cuts, airlines can reduce operational expenses such as maintenance costs etc. The government should also announce reduction in the fees paid to airports and government by the airlines.
Udhaya Kumar Aishwarya [MBA HR]
Assistant Manager HR
AirCrews Aviation Pvt Ltd
udhaya.aishwarya@aircrewsaviation.com
www.AirCrewsAviation.com
#Aviate, #Navigate, #Communicate. #AirCrews, #AirCrewsAviation, #Aviation, https://bit.ly/3dwBAZ9 #COVID-19, #iata, #icao, #faa, #caa, #Stress, #SIP #ojt, #internship, #Management, #Aviation, #Quotes, #SaveYourLife, aviation quotes images Pilot quotes goodreads aviation short quotes aviation brainy quotes Pilot retirement quotes quotes on fighter jets aviation captions for instagram quotes on cabin crew ame quotes aviation is proof that given the will international civil aviation day quotes aviator quotes cabin crew quotes aviation photography quotes inspirational aviation the wonder of flight Pilot sayings before take off Pilot one liners aviation security quotes Air traffic control quotes aviation quotes goodreads howard hughes quotes aviation Pilot motivational speech student Pilot quotes famous quotes from Air force Pilots quotes from Flying lessons fighter Pilot sayings Aircraft engineer quotes
https://bit.ly/3dwBAZ9
Airline pay cut is a reduction in an aircrews’, Pilots or an employee's salary. Pay cuts are often made to reduce layoffs while saving the company’s money during a difficult economic period. A pay cut may be temporary or permanent, and may or may not come with a reduction in responsibilities. As long as you can make it work financially, a reduction in pay may be well worth being able to work at home, have a work schedule that allows you to spend more time with family, or give you more time to spend on important interests and hobbies. On the contrary it’s prone to land you with financial issues due to shortage of salary if you cannot make it work financially.
Reasons for Pay cut:
· Many people see pay cut as the lesser evil during tough times when organizations are faced with the choice of reducing wages, or letting employees go.
· In case of difficult economic periods or challenges to the company, it chooses to cut down on their employees’ salaries.
· Many have grown tired of their current industry or want to do something more creative. Changing careers is often necessary if your goal is to find work that's more fulfilling, but it often means taking a pay cut in the process.
· Many people struggle to achieve a reasonable work-life balance and thus, a pay cut could be their ticket to a more manageable schedule. The employer will be willing to be flexible and let them cut down to 32 hours of work per week so that they have ample time to tend to their family and household needs but they need to give up 20% of their salary to make it happen.
Pay Cut is generally calculated by:
Dividing the percentage of increase or decrease of salary by 100 to convert to a rate. For example, if you have a salary increase of 4.5 percent, divide 4.5 by 100 to get 0.045. Conversely, if you have a salary decrease of 3.4 percent, divide -3.4 by 100 to get -0.034.
Types of pay cut:
· Many government employees are being asked or forced to work fewer hours or take unpaid vacations.
· Companies tend to cut variable pay such as bonuses will be hit hard if the economy remains in bad state through the year.
· Companies may cease to contribute to retirement plans, resort to lesser tuition reimbursement and employees’ monthly contribution for medical benefits may rise as well.
Percentage pay cuts by different Airlines:
· Delta Airlines CEO Ed Bastain announced
·
Vistara has announced actions to reduce
manpower costs. CEO Goh Choon Phong said that he will take a pay-cut of 15 percent. The whole board of the airline is also taking a similar cut.
· Emirates have
· British Airways pilots face 50% pay cut while top executives give up 20% of their salaries.
·
Malaysia Airlines has cut 10 per cent of its
senior management salary as well as reduced their allowances. Malindo Air has imposed a 50 per cent pay cut on its staff in addition to two weeks of unpaid leave to cope with the impact of Covid-19.
· Air Asia’s Founders will give up their
· GoAir are taking 50% pay
· Indigo will implement salary cuts of up to
· SpiceJet has implemented a 10-30 percent
· Air India is considering a 5 percent pay cut
Solution to Pay Cuts:
· Employees should be proactive and look for ways to help their employer cut back without cutting jobs or pay. This can be done through discussions with peers and fellow colleagues after office hours.
· Employees can speak with an accountant to see how they can maximize the benefits and pay check they have, perhaps by increasing their contributions to cafeteria plans or by raising deductibles.
· Employees should try to adjust their reduced hours and consider working for a smaller company as they may experience more transparency and have ample warning if things are going south. They should also use mandatory time off to look for another job.
· Airlines should provide its employees’ with alternatives to do while experiencing pay cuts. They should provide them with free online courses to enhance the skills and knowledge of their manpower during such crisis so that the employees’ will feel that they are able to learn and explore more even though they are experiencing a pay cut. Hence, this decreases oppositions to the management by its employees.
· Instead of reducing costs through pay cuts, airlines can reduce operational expenses such as maintenance costs etc. The government should also announce reduction in the fees paid to airports and government by the airlines.
Udhaya Kumar Aishwarya [MBA HR]
Assistant Manager HR
AirCrews Aviation Pvt Ltd
udhaya.aishwarya@aircrewsaviation.com
www.AirCrewsAviation.com
#PayCut
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#Aviate, #Navigate, #Communicate. #AirCrews, #AirCrewsAviation, #Aviation, https://bit.ly/3dwBAZ9 #COVID-19, #iata, #icao, #faa, #caa, #Stress, #SIP #ojt, #internship, #Management, #Aviation, #Quotes, #SaveYourLife, aviation quotes images Pilot quotes goodreads aviation short quotes aviation brainy quotes Pilot retirement quotes quotes on fighter jets aviation captions for instagram quotes on cabin crew ame quotes aviation is proof that given the will international civil aviation day quotes aviator quotes cabin crew quotes aviation photography quotes inspirational aviation the wonder of flight Pilot sayings before take off Pilot one liners aviation security quotes Air traffic control quotes aviation quotes goodreads howard hughes quotes aviation Pilot motivational speech student Pilot quotes famous quotes from Air force Pilots quotes from Flying lessons fighter Pilot sayings Aircraft engineer quotes
