CAL confirms temporary layoffs and salary reductions

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    Caribbean Airlines has confirmed that it will temporarily lay off approximately one third of its employees in the coming month.

    There will also be cost cutting measures and temporary salary reductions, as it looks to support the airline’s recovery.

    It says the COVID-19 pandemic has presented significant challenges and so it must take further steps to streamline expenses and manage cash.

    As such, it intends to implement “certain temporary measures to cut costs and reduce overheads from October 15, 2020.”

    These include but are not limited to:

    • Salary reductions for a period of eight months from mid-October 2020 for those paid more than $7500 (TTD) per month, with reductions tiered to be higher for those on higher remuneration
    • Temporary layoffs for approximately one third of employees for three months, depending on their role and the current needs of the business
    • Continued cost reductions wherever possible, including reducing contractors and temporary workers and allowances that are not relevant at this time

    CAL says standard industrial relations criteria were used to select the employees who will be temporarily laid off.

    It adds that its current operations will not be impacted by the temporary layoffs – this includes Cargo operations, the domestic Air Bridge between Trinidad and Tobago, the Kingston and Barbados based commercial services and special Government approved flights to/from Trinidad and Tobago.