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Fiji Airports Management Take Bigger Pay Cut

“This further reduction of working hours is reflective of the ongoing need to reduce the cash burn such that we can survive."
30 Sep 2020 08:47
Fiji Airports Management Take Bigger Pay Cut
Nadi International Airport.

Management of Fiji Airports will be taking a further 10 per cent salary pay cut which amounts to 40 per cent effective from November 1. In a circular sent to staff members by the Fiji Airports chairman, Geoffrey Shaw, dated September 25, it said: “Fiji Airports is under enormous financial strain as we continue to bleed cash with depleting revenues.

“The senior management team is continuing in the fight to sustain our viability in light of this bleak outlook.

“The challenges we continue to face and the actions and tough decisions we take now, will define our recovery.

“The Board of Directors at this week’s meeting, explored and considered all options and alternatives available in light of our ongoing and depleting revenue generation and cash reserves.

“Accordingly, we have ratified the following measures to be implemented: Management pay cut Our management team, after taking a voluntary 30 per cent pay cut in April, will now take a further 10 per cent pay cut amounting to 40 per cent of their salary, effective from 1 November 2020.

“This is an additional pay cut for our managers as they too, realising the importance of and seeking to support Fiji Airports, contribute and assist in navigating our way through these challenging times. The Board commends our managers who are exemplifying tenacity and resilience during these trying times.

Reduced hours

“In the coming two weeks the management team will be working with each of the departments to ascertain which staff will be impacted by further working hour reductions.

“This further reduction of working hours is reflective of the ongoing need to reduce the cash burn such that we can survive.

“Specific departments will have a further eight hours reduction in their rosters from 56 hours to 48 hours per fortnight.

“This will mean that many staff will be on 3 day week rosters from 01 November 2020 until further notice.

“We understand a blanket reduction in hours is not practical or possible across all departments due to minimum operational and safety requirements.

“However, we do need all our staff to collectively understand this additional sacrifice provides for our long term survival.

“There is no doubt this crisis is asking a lot from everyone and will continue to do so for some time into the future.

“The intent is that this further reduction in hours is temporary as working hours will increase relative to flight frequencies and travel demand.

“The current forecast details how this will progress based on current forecast flight frequencies.

“In addition to the above necessary sacrifices that impact all members of the Fiji Airports Family, it is a sad reality that we will no longer be able to support specific roles within the organisation.

“Whilst we seek to maintain employment to the best of our ability and capacity, in the coming months each department will be progressively affected.

“It is deeply upsetting that despite all the actions taken to date and detailed above, we can no longer hope to keep all our current staff employed.

“The severance packages will be generous, in good faith and well in excess of the company’s legal obligations.

“It remains our fervent hope that international air travel will resume within the first quarter of 2021.

“While we remain optimistic, I ask all of you to be resilient in these unprecedented times.

“Please focus on your individual jobs, provide support and encouragement to your fellow workmates and ensure that we continue to provide our best service to our business partners and clients.”

A statement from Fiji Airports said: “Fiji Airports business model has not been spared by the continuing COVID-19 global crisis.

“Sustainability of our current and future business is paramount.

“Tough decisions are required to ensure we are in a position to ramp up our business activity once we see a return to normal trading, as we inevitably will in the future.

“Additional cost cutting measures have been initiated including our management team taking a further salary sacrifice together with reductions in hours for our colleagues in specific departments.

“We continue to regularly engage with our team and keep them appraised of our business activity forecasts.”

Feedback: maraia.vula@fijisun.com.fj

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