Cathay Pacific cuts pay rises for staff to 2 per cent, gives one-off sum of up to $3,800 in place of end of the year bonuses

05-Dec-2019 Intellasia | South China Morning Post | 6:02 AM Print This Post

Cathay Pacific has scrapped end of the year bonuses for staff this year as it counts the costs of the six months of anti-government protests in Hong Kong which has scared away millions of visitors and plunged the city into a recession.

The bulk of the 27,000 airline staff will get a end of the year payment of HK$30,000 (US$3,800), or one month’s salary, whichever is lower, CEO Augustus Tang Kin-wing announced in a memo to staff on Wednesday.

“I recognise the disappointment of not being paid a Discretionary End of the year Bonus and hope the ex-garia payment represents a token of our goodwill and appreciation,” Tang said. “I know people are pulling together and supporting each other through what has been a very turbulent period.”

Staff would next year receive a pay rise of 2 per cent, he said. Hong Kong’s rate of inflation stood at 3.1 per cent in October.

Cathay Pacific, fresh from issuing two profit warnings, also plans to fly fewer flights as demand for its flights wanes from an overhang of the civil unrest in Hong Kong.

Hong Kong’s flagship airline said last week it would scale back its capacity by 1.4 per cent next year, reversing an earlier plan to grow by 3.1 per cent.

CEO Tang said last week no more routes would be cut outright, but cost control measures would be unveiled, aiming to be “proportionate to the challenges we face”.

https://sg.news.yahoo.com/cathay-pacific-scraps-end-bonuses-071224025.html

 


Category: Hong Kong

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