TAIPEI (Taiwan News) — China Airlines (CAL) announced Tuesday (July 7) that before the end of July, it would cease the program of wage cuts and reduced working hours it had introduced due to the Wuhan coronavirus (COVID-19) pandemic.
The scheme had been introduced on May 1 in the wake of the rapidly falling number of passengers as more countries imposed travel bans and demand for seats plummeted. The wage cuts, ranging from 15 to 25 percent, were to have ended on July 31, but CAL reached an agreement with the China Airlines Enterprise Union to restore previous salaries retroactively from July 1, CNA reported.
In late April, company management and the union agreed that if the wage cuts went ahead, the airline would safeguard jobs and promise not to lay off staff during the pandemic. The program also guaranteed Wednesday off each week during the three-month period, according to CNA.
The early end to the cuts came after the union told management about the grave consequences on the livelihood of staff. In addition, in the months since travel fell, CAL has recorded a marked increase in freight transport, leading it to promise bonuses to related personnel, according to the Liberty Times.