Coronavirus: EasyJet asks staff to accept zero pay for three months while bosses take just 20% cut
Move comes as airline hands £60m to its founder and shareholder Sir Stelios Haji-Ioannou
Friday, 20th March 2020, 7:44 pm
Updated Friday, 20th March 2020, 7:44 pmBudget airline EasyJet has asked its pilots and cabin crew to take two months unpaid leave (Photo: Sean Gallup/Getty)
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It is understood the airline had originally asked its 15,000 staff to accept three months of zero pay, but have now backed down to two months or no income spread over six months.
The airline is also proposing to make sweeping changes to employees terms and conditions and imposing a pay freeze across the business.
Payout for airline’s founder
Airline’s founder Sir Stelios Haji-Ioannou, pictured centre with Richard Branson, controls 34 per cent of the airline’s shares (Photo: ADRIAN DENNIS/AFP/Getty)
Despite the measures being meted out to staff, the airline is still insisting on paying out £174m in dividends to shareholders. This includes a £60m payout to the airline’s founder Sir Stelios Haji-Ioannou, who controls 34 per cent of the airline’s shares.
A spokeswoman for EasyJet said the zero pay for two months and changes to employee contracts were “part of ongoing discussions”.
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When asked about the 20 per cent pay cut for senior management she said: “EasyJet can confirm that it has met with its employee representatives in the UK to discuss how they can help the airline navigate through these unprecedented times.
“We have shared the proposals with our employees and will continue to consult with them. Like all airlines, we are taking every action to remove cost and non-critical expenditure from the business to help mitigate the impact from the Covid-19 pandemic. As such our chief executive officer, chief operating officer and chief financial officer have all elected to take a 20 per cent cut in their monthly salary from April to June.”
The pilots union BALPA said it was unable to comment while talks were ongoing.