All Air Pacific staff are to get a 10% paycut according to a Memorandum of Understanding signed between the management and the Transport Workers Union.
Union General Secretary, Kamlesh Kumar said the cost cutting measures includes a 10% paycut for a period of three months, effective immediately, executive management including the Managing Director have taken a 15% pay cut while management and contracted staff a 10% pay cut for six months, subject to review after three months.
Kumar said all staff were told that the 10% salary reduction was a better option to job losses thus the signing of the agreement.
Cost cutting measures already undertaken by the airline includes reduced working hours due to the downgrading of flights, the encouragement of taking annual leave and for cabin crew, leave without pay if they wish.
Air Pacific Managing Director and CEO, John Campbell said he is proud and humbled by the willingness of staff to understand and accommodate these changes.
In a statement, the airline said it has experienced significant downturns in overall business whilst air cargo rates and airfares are at historically low levels resulting in reduced income for the first six months of this year.
All Air Pacific staff to get 10% paycut
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