Gulf Air CEO, Samer Majali, announced the carrier reduced its workforce by 3% in 1Q2010, with total reductions amounting to 500 employees over the past six months (Reuters, 10-May-2010). Meanwhile, Gulf Air Trade Union announced it is “happy” with the carrier’s voluntary redundancy/retirement scheme (VRS) proposed on 06-May-2010. Under the scheme, employees who have worked for the company for a minimum of six months are entitled to apply. Employees, whose applications have been approved will receive a compensation of one-month's salary for each year of service, three month's salary as an ex-gratia payment and one month's salary in lieu of notice. In addition they will also receive other benefits such as medical insurance coverage and staff travel benefits.
Gulf Air reduced workforce by 3% in 1Q2010
You may also be interested in the following articles...
Airline strikes: 2016 a peak year for Europe's legacy airlines. Wakeup time, as LCCs pick them off
Pilot strikes at Lufthansa. Again. A strike ballot among British Airways cabin crew. A guilty verdict for Air France workers who assaulted an executive during a union protest. These were all headlines in late Nov-2016, following Air France pilot and cabin crew strikes in summer 2016. Labour relations at Europe's three biggest legacy airline groups are an ongoing challenge.
A CAPA report in Jun-2016 highlighted the growing number of articles on CAPA's website mentioning the word 'strike'. It raised the possibility that if the rate continued through the year, 2016 could be the biggest year for strike-related articles since before the global financial crisis. With a little under a month still to go, this year has already comfortably passed this milestone.
To a large extent labour unrest grows as airline industry profits increase. However, rather than hoping for an industry downturn to reverse the rise in the cycle of strikes, airline CEOs are talking tough – a line long taken by IAG's Willie Walsh. Lufthansa's Carsten Spohr has said that taking on the pilots is "about the future of Lufthansa", noting that it has “no chance of survival" if it gives in to pay demands (Bloomberg, 24-Nov-2016).