RwandAir has been forced to cut salaries of workers, with top executives losing as much as 65% of their net pay as the company moves to fend off losses resulting from the grounding of flights due to the coronavirus crisis.
The national carrier’s chief executive Yvonne Makolo, in a memo to staff, said the lowest paid staff will lose 8% of their pay while the highest paid will lose as much as 65% of their salaries.
“This was an extremely tough decision and we understand the impact it will have on you and your family, however, please know that we considered several other alternatives and the choice we made is the best option at this time,” reads part of the memo.
The company had earlier decided not to pay the CEO, DCEO and all directors for the month of April.
Pilot employment contracts were also suspended.
In earlier measures, according to the memo, RwandAir had instructed for a re-negotiation of terms to reduce company expenditure and financial commitments.
Other measures the carrier has taken include suspension of all allowances including communication allowances and urged workers to utilize annual leave during the suspension period.
According to the chief executive, the measures are being taken to reduce losses while being able to maintain staff.
“Management has come to a difficult but necessary conclusion that, in order to maintain the current workforce, more stringent measures are required to avoid suspending all employment contracts from this April due to the pandemic,” the chief executive wrote.
Source: Story by smart24tv.co.ug
