September 29, 2020

CAL Resorts To Salary Cuts, Temporary Layoffs As Revenue Suffers Hit From COVID-19

By Newsroom

With majority of its fleet downed for the larger part of the year, Caribbean Airlines has announced new short term measures to support its recovery. 

In a statement on Tuesday, CAL said reduced demand due to the global pandemic has presented significant challenges to Caribbean Airlines’ revenue and cash position and it must now take further steps to streamline expenses and its manage cash.

This includes, but is not limited to:

-Salary reductions for a period of eight (8) months from mid-October 2020 for those paid more than $7500 (TTD) per month, with reductions tiered to be higher for those on higher remuneration.

-Temporary layoffs for approximately one third of employees for three (3) months, depending on their role and the current needs of the business

-Continued cost reductions wherever possible, including reducing contractors and temporary workers and allowances that are not relevant at this time.

The airline assured that standard industrial relations criteria were used to select the employees who will be temporarily laid off.

“The leadership team recognizes the impact of these measures on its employees and their dependents and has put systems in place to support those affected,” CAL said.


Caribbean Airlines assures all stakeholders that its current operations are not impacted by the temporary layoffs – this includes our Cargo operations, the domestic Air Bridge between Trinidad and Tobago, the Kingston and Barbados based commercial services and special Government approved flights to/from Trinidad and Tobago.

 

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