Gulf Air reduced workforce by 3% in 1Q2010

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.