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Japan Airlines

JAL to implement 5% pay cuts, eliminate bonuses in 2010

Brenton Cordeiro  Feb 18, 2010

Japan Airlines Corp plans to cut employee pay by 5 percent from April and eliminate bonuses in fiscal 2010 in an attempt to swiftly turn around its business, the Nikkei business daily reported.

The proposed wage cuts are the first detailed restructuring plans to come out of JAL since the company filed for bankruptcy in January and was placed under the oversight of the state-backed Enterprise Turnaround Initiative Corp. of Japan, the daily reported.

The wage cuts, presented to eight labor unions, are to be implemented from April with the airline targeting a reduction of annual personnel costs by 30 billion yen ($332.8 million), the paper said without citing any sources.

All employees at Japan Airlines International Co, the group's core flight operations firm that handles domestic and overseas flights, would be subject to the revised pay structure.

The airline would also consider adopting similar pay cuts for workers at other group firms, corresponding with their respective wage structures, the Nikkei said.

JAL, Asia's largest airline by revenue, was also looking to freeze regularly scheduled pay increases and promotions under its proposed plan, the business daily said.

JAL to implement 5% pay cuts, eliminate bonuses in 2010
Japan Airlines headquarters in Tokyo / Image via


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