No bonuses but 1pc pay rise for Cathay ground staff, cabin crewLocal | 7 Dec 2017 1:15 pm
Loss-making Cathay Pacific announced today that there will not be a bonus for its employees, but will offer "ex-gratia payment” to staff that are managers and below, RTHK reported.
"Whilst our transformation program is making good progress, we continue to face some stark business and commercial challenges. Therefore, the company will not be able to pay the Discretionary Year-end Bonus to eligible employees,” Cathay CEO Rupert Hogg wrote in an internal message seen by RTHK, the report said.
Cathay said those eligible for the ex-gratia payment will get the equivalent of one month’s salary, capped at HK$35,000.
Hogg pointed out that staff who are senior managers above, like him, will not get the special payment. "We appreciate this is disappointing news, but our financial position is such that it is not possible to extend payment to this group.”
The city's flagship carrier also announced an 1 percent pay rise for ground staff and cabin crew, according to the report.
"Although we have seen signs of small improvements in our business, there is still much to be done to deliver our transformation program,” Hogg said. "We are undergoing the biggest change in our organizational history and whilst we are well on the way now, none of us should underestimate the scale of that challenge."
In May this year, the local carrier announced its largest shakeup in two decades to lay off 600 staff, mostly managers and back-bench staff members.
Cathay reported a net loss of HK$575 million for 2016.