Following a string of inevitable cash fallouts as a result the on-going global Corona Virus pandemic, the management of RwandAir has been forced to cut salaries of workers, with top executives losing as much as 65% of their net pay. This is a response action as the company moves forward to tackle the recurring losses incurred emerging from the global action of grounding and restricting flights to avoid the coronavirus spread.
In a documented memo to all staff, RwandAir CEO Yvonne Makolo, said the lowest paid staff will lose 8% of their pay while the highest paid will lose as much as 65% of their salaries to lavage the company’s financial position.
“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.
It should however be noted that in earlier measure, the company had decided not to pay the CEO, DCEO and all directors for the month of April. Pilot employment contracts were also suspended.
According to the released memo, RwandAir had instructed for a re-negotiation of terms to reduce company expenditure and financial commitments. RwandAir had also taken into consideration measures like suspension of all allowances including communication allowances and urged workers to utilize annual leave during the suspension period.
All these measures, according to the chief executive, are being taken to reduce losses while being able to maintain staff and the company’s wellbeing.
“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.
It should be noted too that the travel and hospitality industries are the worst hit by the coronavirus pandemic due to global travel restrictions.
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