JAL to solicit record 2,700 applications for early retirement

+

TOKYO, March 1 Kyodo -
Japan Airlines Corp. said Monday it will solicit around 2,700 employee
applications for an early retirement program as it aims to turn itself around
through heavy restructuring under a state-led process.
The estimated figure would be the largest ever for the company's early
retirement program. The staged application process will start from Friday.
Japan's biggest airline, which filed for bankruptcy protection on Jan. 19,
eventually plans to cut around 15,700 jobs, or about 30 percent of its group
workforce, by the business year through March 2013.
The initial round of the early retirement program will be open to about 400
department chief-level employees among ground and cabin crew, excluding pilots,
at its key flight services unit Japan Airlines International Co.
JAL plans to eventually solicit applications from other manager-class officials
and regular employees. It will also seek approval for the plan from its labor
unions.
Applications will be accepted by March 24 and those applying would be asked to
leave their jobs on April 30 with higher retirement allowances, the company
said.
The financial impact of the measure remains unclear as it will depend on the
age and years of service of the employees applying for the program, JAL
spokeswoman Yap Sze Hunn said.
Last week, JAL said its group net loss in the April-December period expanded to
177.98 billion yen, the biggest ever, due to sagging demand particularly among
business travelers.
The company is expected to submit a rehabilitation plan to the Tokyo District
Court by the end of June, which will be sponsored by a government-backed
corporate turnaround body.
''We can open the early retirement program ahead of obtaining court approval
for our rehabilitation plan,'' another JAL official said.
Among the estimated 2,700 employees, the company plans to solicit about 1,700
applications from Japan Airlines International and the rest from other group
firms.
==Kyodo
2010-03-01 23:33:19