JAL plans to cut 5% of monthly wage, forgo bonus payment+

TOKYO, Feb. 18 Kyodo -
Japan Airlines Corp. is planning to cut monthly wages by 5 percent and forgo
bonus payments for its subsidiary employees as part of its restructuring
process after it filed for bankruptcy protection in January, sources close to
the matter said Thursday.

The move, which also includes suspension of annual wage increases and
promotions, will affect about 16,000 employees at its key subsidiary Japan
Airlines International Co.
JAL will aim to implement the measures from April 1 now that it submitted the
proposal earlier in the day to its eight labor unions for a revision of the
company's wage system for the upcoming business year through March 2011, the
sources said.
The carrier, whose turnaround is being sponsored by a state-backed body,
expects to cut more than 30 billion yen in costs by carrying out the wage
reduction. It also plans to implement similar measures for its other group
employees.
JAL will continue to forgo bonus payments following a similar decision late
last year. But it may consider paying a bonus of about half a month's salary
during the summer and year-end if its earnings recover to thank its employees
for their cooperation in the rehabilitation process.
The company previously guaranteed pilot wages for 65 flying hours per month
regardless of actual working conditions. But it will aim to cut their wages,
which are often criticized as too high, by shortening the guaranteed hours to
50 hours per month by the end of fiscal 2010 starting in April.
==Kyodo
2010-02-18 23:09:51


Delete & Prev | Delete & Next