Turkish Airlines planes

Turkish Airlines will cut employees salaries to avoid layoffs

The Turkish airline has reached an agreement with the unions to cut the salary of pilots by 50% and that of other workers by 30%.

Turkish Airlines will cut the salaries of its employees, including crews and ground personnel, to avoid having to make layoffs as a result of the crisis created by the coronavirus pandemic, according to an agreement reached with the unions and whose details were given on Monday.

According to a representative of the Hava-Iş aviation workers union, which represents almost 75% of the 30,000 workers of Turkish Airlines, the Turkish company will cut the salaries of its pilots by 50%, those of the crew of cabin 35%, and the salaries of the rest of personnel by 30%. These cuts in wages will be in effect in principle until the end of 2021.

The agreement reached between the airline and the union stipulates, however, that Turkish Airlines must review its financial status every 6 months until the end of 2021 to verify that the conditions that forced the salary cut are maintained; it will also not be able to make layoffs to save costs.

The crisis caused by the coronavirus pandemic and travel restrictions have caused arrivals to Turkey of foreign tourists to drop dramatically: in July they fell by 86% compared to the same month in 2019, with 932,927 visitors, according to data from the Ministry.of Culture and Tourism.

Between April and May, Turkish Airlines was forced to suspend its domestic and foreign flights due to the pandemic, which caused its revenues during the second quarter to drop by a third compared to last year, amounting to just about 700 million euros. Net losses recorded by the airline between April and June totalled 253 million euros, compared to the 15 million euros of profits it recorded in 2019.