CAL, union agree on 15-25% pay cuts for employees at all levels

TAIPEI (CNA) — State-controlled China Airlines (CAL) has reached an agreement with its employees to impose temporary pay cuts at all levels, with reductions ranging between 15 and 25 percent.

All rank and file workers will have their pay cut by 15 percent while mid-level managers and top executives will see pay cuts of 20 percent and 25 percent, respectively, China Airlines Employees’ Union president Liu Hui-tsung (劉惠宗) said Monday after labor-management talks.

The reductions will take effect on May 1 and last until July 31, and CAL will operate on reduced timetables during that period, with employees taking an additional four or five days off per month beyond their normal rotations, Liu said.

In addition, the company has provided assurances that it will not lay off workers under the program, according to Liu.

The move was made in response to the COVID-19 pandemic, which has brought the airline industry to a virtual standstill.

The Taiwan-based airline previously reduced the salary of CAL management by 10 percent on Feb. 16 to cope with plummeting revenues, but that cut will expire before the new cuts are phased in at the beginning of May.