Employees, managers take hit as Lucio Tan firm losses soar
MacroAsia Corp., the country’s largest aviation support company, is slashing costs as the airline sector reels from the new coronavirus pandemic.In a stock exchange filing, Lucio Tan-led MacroAsia said it started on Monday a rotating voluntary no-work, no-pay schedule across all pay grades and that employees would be offered early retirement with no premium.
Management would also take a 10-percent pay cut, a move the company said would help save jobs.
There were no workforce reductions so far and final numbers related to its cost-cutting programs were being finalized, a company official told the Inquirer on Monday.MacroAsia, which provides airline catering, airport ground handling and plane maintenance services, employs 12,315 workers.
This was in response to growing business losses as demand for air travel disappears while governments around the world impose travel bans. The industry is taking a significant hit after President Duterte ordered a 30-day quarantine of Manila, where domestic flights were also halted.
Cebu Pacific also said the suspension of flights in the country and overseas markets such as China and South Korea affected 90 percent of its seat capacity. INQ
