In view of the reduced demand for its services due to the global pandemic, Caribbean Airlines (CAL) is being forced to lay off staff in a bid to stay afloat.
The airline in a release yesterday stated that the COVID-19 pandemic has presented significant challenges to its revenue and cash position forcing it to apply “temporary measures” to streamline expenses and manage its cash. CAL has assured that these measures are to be implemented after careful consideration and discussions with key stakeholders as well as having the support of the Board of Directors and will commence on October 15.
The strategy which is aimed at cutting costs and reducing overheads includes but is not limited to: salary reductions for a period of eight months from mid-October for those paid more than TT$7,500 per month, with reductions tiered to be higher for those on higher remuneration; temporary layoffs for approximately one third of employees for three months, depending on their role and the current needs of the business; and continued cost reductions wherever possible, including reducing contractors and temporary workers and allowances that are not relevant at this time.
According to the airline, the selection of employees to be temporarily laid off will be in accordance with industrial relations criteria. Also management in recognition of the impact of these measures on its employees and their dependents 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 including 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.
