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Port of Spain, September 29, 2020. Caribbean Airlines advises that in the coming weeks the airline will apply temporary measures to support the recovery of the airline.
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.
After careful consideration, discussions with key stakeholders and with the support of the Board of Directors, the Company intends to implement certain temporary measures to cut costs and reduce overheads from October 15, 2020. Some of the temporary measures include but are not limited to:
The airline confirms 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.
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.
Caribbean Airlines thanks its valued customers and all concerned for their continued support.
QUESTIONS AND ANSWERS
BACKGROUND:
Globally, airlines are experiencing unprecedented challenges caused by the COVID-19 pandemic as there continues to be a slump in demand and on-going travel restrictions.
The International Air Transport Association (IATA) is expecting airlines to lose around $84 billion in 2020, making it the worst financial year in the history of aviation.
As such, to safeguard the viability of the business, Caribbean Airlines is putting in place some temporary measures to help reduce its operating expenditure.
Below are some questions and answers to guide your queries.
ANSWER: A temporary layoff is a period of employer-initiated suspension of contracts due to no fault or misconduct by the employees but due to circumstances which are beyond the control of the employer. Under industrial relations law in most jurisdictions, employers can lay off employees temporarily for up to 90 days, unless exceptional circumstances persist. The employer also has the right to recall workers at any time during the 90-day period. During this period the salary payments of employees affected will be suspended.
ANSWER: Approximately one third of employees across the entire Caribbean Airlines network.
ANSWER: No. These temporary measures will not affect current flight services and cargo operations. Cargo, the domestic air bridge between Trinidad and Tobago, the Kingston and Barbados commercial operations and special Government approved flights to/from Trinidad and Tobago will NOT be affected.
ANSWER: These measures are intended to be short term and will take effect from October 16, 2020 to January 2021 (90 days/3 months)
2
We are working towards ensuring the long-term survival of the Company and in this regard must achieve cost reductions that reflect our changed revenue position. These temporary measures represent the best way that we can achieve this. The alternative, if we do not achieve our target cost reduction, would be to consider other measures that may lead to permanent separations.
ANSWER: Salaries will be reduced for eight months from October 15, 2020 to June 15, 2021.
ANSWER: Salaries will be reduced on a tiered basis, depending on the salary level. Persons paid $7500 or lower will not have their salaries reduced. Employees’ pension benefit and medical plan will not be affected.
ANSWER: Employees will be recalled to work as the business needs warrant and based on job function and seniority.
ANSWER: Yes. The Company takes its duty of care seriously and has ensured that support is in place for persons needing assistance. There is also a hotline set-up to handle any staff queries.
ANSWER: No. Employees will be recalled to work in their original positions as the business needs warrant.
Port of Spain, September 29, 2020. Caribbean Airlines advises that in the coming weeks the airline will apply temporary measures to support the recovery of the airline.
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.
After careful consideration, discussions with key stakeholders and with the support of the Board of Directors, the Company intends to implement certain temporary measures to cut costs and reduce overheads from October 15, 2020. Some of the temporary measures include but are not limited to:
The airline confirms 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.
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.
Caribbean Airlines thanks its valued customers and all concerned for their continued support.
QUESTIONS AND ANSWERS
BACKGROUND:
Globally, airlines are experiencing unprecedented challenges caused by the COVID-19 pandemic as there continues to be a slump in demand and on-going travel restrictions.
The International Air Transport Association (IATA) is expecting airlines to lose around $84 billion in 2020, making it the worst financial year in the history of aviation.
As such, to safeguard the viability of the business, Caribbean Airlines is putting in place some temporary measures to help reduce its operating expenditure.
Below are some questions and answers to guide your queries.
ANSWER: A temporary layoff is a period of employer-initiated suspension of contracts due to no fault or misconduct by the employees but due to circumstances which are beyond the control of the employer. Under industrial relations law in most jurisdictions, employers can lay off employees temporarily for up to 90 days, unless exceptional circumstances persist. The employer also has the right to recall workers at any time during the 90-day period. During this period the salary payments of employees affected will be suspended.
ANSWER: Approximately one third of employees across the entire Caribbean Airlines network.
ANSWER: No. These temporary measures will not affect current flight services and cargo operations. Cargo, the domestic air bridge between Trinidad and Tobago, the Kingston and Barbados commercial operations and special Government approved flights to/from Trinidad and Tobago will NOT be affected.
ANSWER: These measures are intended to be short term and will take effect from October 16, 2020 to January 2021 (90 days/3 months)
2
We are working towards ensuring the long-term survival of the Company and in this regard must achieve cost reductions that reflect our changed revenue position. These temporary measures represent the best way that we can achieve this. The alternative, if we do not achieve our target cost reduction, would be to consider other measures that may lead to permanent separations.
ANSWER: Salaries will be reduced for eight months from October 15, 2020 to June 15, 2021.
ANSWER: Salaries will be reduced on a tiered basis, depending on the salary level. Persons paid $7500 or lower will not have their salaries reduced. Employees’ pension benefit and medical plan will not be affected.
ANSWER: Employees will be recalled to work as the business needs warrant and based on job function and seniority.
ANSWER: Yes. The Company takes its duty of care seriously and has ensured that support is in place for persons needing assistance. There is also a hotline set-up to handle any staff queries.
ANSWER: No. Employees will be recalled to work in their original positions as the business needs warrant.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
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