China Airlines restores staff salaries retroactively

The announcement comes after two months of pay cuts and reduced working hours

The logo of Taiwan based China Airlines is seen in this undated file photo. (NOWnews)

TAIPEI (The China Post) — Taiwan-based China Airlines (CAL, 中華航空) announced Tuesday that it will restore the salaries and working hours of its employees, retroactively, starting from August.

Since May 1 of this year, the airline has had wage cuts and reduced working hours in place for its employees, and had planned to continue with the cost-cutting measures until July 31.

Over the past two months, CAL has encouraged staff members in all positions to take personal leave, in addition to making adjustments to duty time for those who chose to continue working.

Vice presidents and senior management officials had their salaries cut by 25 percent during the period, while managers and section chiefs took a pay cut of 20 percent. The remaining staff members, presenting 96 percent of the airline’s staff, had their salaries cut by 15 percent.

Given that CAL Group’s Cargo division, China Airlines cargo, has performed above expectations, the company said in a statement that it can now restore salaries because the financial situation has improved and stabilized.

The group’s ability to survive the pandemic may also be attributed to wisely utilizing its parked Tigerair Taiwan (台灣虎航) international aircraft to serve domestic flights, which have boosted ticket sales and increased cash input for the airline group.

Due to the coronavirus pandemic, the aviation industry has suffered immensely around the world, with the IATA (International Air Transport Association) estimating on June 9 that the global air transport industry would lose a staggering US$84.3 billion in 2020 due plummeting travel demand. 

Airlines across the world have been hit especially hard, with major global airlines such as Emirates and American Airlines announcing plans to lay off a significant number of their staff members.  China Airlines, on the other hand, has made less radical changes to the airline’s workforce.