Cx Staff Redundancies

[monster330]

So, with the world economy heading south and no long term end in sight...Any thoughts what our mis-management might do with regard to staff layoff's??

It's been done before when times weren't nearly as bad as how'll they get.

[volarecantare]

Grow up Monster....what's the point in harboring more doom. Haven't you enough to be getting on with without your scare mongering?

Ironic you should worry about this when your post on voluntary unpaid leave was...
QUOTE>>>>>
CX Unpaid Leave
So...is anyone out there taking up the offer- or know of anyone who is actually going to do it?

If unpaid leave becomes an option , we should ALL do our bit if we can!

[yokebearer]

If unpaid leave becomes an option , we should ALL do our bit if we can!

Sure - I am all for helping to save people's jobs and livelyhood. But why must an SO -who is struggling to support his family as it is - be expected to take a further financial knock after he has been told its now 4 years to upgrade with no bypass? Why must the poor bastard now go and essentially give up some of his salary so the company can use that money to save the jobs of the DEFO's that are keeping this same SO down?

[slapfaan]

Don't worry YOKEBEARER, the writing's on the wall, and it's going to be strictly in reverse seniority:

LAST IN - FIRST OUT!!!

Unfortunate,but that's the chance you take when changing employers. Most SO's needend worry, it's all those DEFO's and Oasis DEC's (who shouldn't be here) who needs to be worried, I guess volarecantare's one of them!!

[Flying Mechanic]

i think the writing on the wall for airlines in Asia, this recession will be around for another 2 years...tough times a head for all.

[Apple Tree Yard]

...once again, hysterics start to fly...! Let's get some perspective on things shall we? The airline has approximately 6 billion in liquid assets/cash/credit lines. That is about twice the next best funded airline. We are STILL training new joiners. We have NOT cancelled any aircraft orders. We are ADDING new destinations. We are losing less ground than any competitor (in other words...we are gaining further distance on them). We are NOT seeing management take any pay cuts..ooh, err...sorry about that last one...silly me! Seriously, CX is well placed to PROFIT from any economic turmoil. In fact, our management are quietly happy as they always come out further ahead of our competitors after downturns like this. Go to work, have a life...stop letting the management wind you up.

[AD POSSE AD ESSE]

Apple Tree..

I'm not going to call you stupid here, but you are most definately naive mate!!Or maybe it's the pollution or spending too much time in LOONEY TUNE land..

Now I don't believe everything I hear or read on the news,but what I DO KNOW is that the entire world is in a major recession, Cathay is most definately NOT immune to it..and nobody knows how long it's gonna last..

In the SCMP today there is an article, speculating that Cathay is expected to report the BIGGEST loss in it's history, of anything between 1.5 to 11 billion, yes BILLION HKD's, on wednesday...

Both Singapore and British Airways have hinted at possible redundencies as the economic crisis hits home..
By claiming that "CX is well placed to PROFIT from any economic turmoil" is laughable!!

CX has started doing what ANY airline would do in times like these, starting with the most obvious, and working down the list:

• Revise the budget operating plan;
• Offer voluntary unpaid leave;
• Cut unecessary spending;
• Recruitement freeze;
• Retire/sell/park old aircraft;
• Reduce capacity on UNprofitable routes;
• Offer severance packages;
• Staff redundencies in reverse seniority..

I'm not even going to get into all the fines and court cases, in the waiting, against Cathay, which can make an even bigger dent in losses, or wipe out future profits, however small..

One thing I do agree with is that things WILL get better, it's just not going to be next week..

[icarusone]

All is well, things are splendid. Why on Earth would anyone be worried?

[Apple Tree Yard]

...yes pussy esse....i'm obviously stupid. There, feel better now..?

[Rice power]

Who is naive?????
Cathay will announce a loss of 7.97 b HKD of which 7.6 b is an UNREALIZED FUEL HEDGING LOSS.
Take away the hedging costs WHICH HAVE BEEN BROUGHT FORWARD and you are left with an operating loss of .37b HKD in what has been the most challenging economic environment seen in the last 60 yrs.
For the economically challenged amongst you, this is an exceptionally good result.
The 3rd floor has you scared of your own shadow esse !

[AD POSSE AD ESSE]

Oh sorry...yes..EVERYTHING is just absolutely fantastic..no worries..

So how much PROFIT share will we get? I heard anything between 6-8 weeks

[Sqwak7700]

So how much PROFIT share will we get? I heard anything between 6-8 weeks

Actually, they've already said they will be giving HK based crew half a month. I believe it was announed when they announced only half a month salary for 13th month pay.

[fly123456]

How much would it cost the company to apply redundancies?

6 months salary, then retraining in what... 18 months?
Not talking about the bad reputation the airline might get if they start laying off pilots.

(just trying to convince myself, as I'm quite at the bottom end of the seniority list )

[Freehills]

For HK based staff, 3 months. And having laid off 49, I don't think reputation amongst pilots is top of mind

[yokebearer]

So how much PROFIT share will we get? I heard anything between 6-8 weeks

Actually, they've already said they will be giving HK based crew half a month. I believe it was announed when they announced only half a month salary for 13th month pay.

So since we made a loss does that mean we have to pay the company half a month? I thought profit share implies a profit was made first?

[volarecantare]

Slapperfaan

You guess wrong Slapfaan.

I say we should all take responsibility in these times and I say that from a comfortable place, NOT from a fear for myself place.

Now what if the "worst-ist" you are wishing on others is the "best-ist" you have to look forward to yourself, how would you stand then son?

[AD POSSE AD ESSE]

volare-c u n t-are..it might be difficult for you, but DO try and keep your posts in english,ok!!

rice power..financial results just released, seems you were only out by a few million (see CE report in itraCX)..and no, there won't be any PROFIT sharing soon either..

However, if things continue to get worse we will have to take more stringent measures to preserve cash and ensure our long-term viability as a business. We have substantial commitments going forward with the expansion of our passenger and freighter fleets. The current dire operating environment means that meeting these commitments will put our balance sheet under severe pressure. Our absolute priority now must be to preserve cash wherever possible, which means we need to carefully review all the options open to us in the longer term interests of our airline. We may have to take some very tough decisions.

If you're at the bottom of the seniority list, now would be a good time to start looking around..sad but true..

[bobrun]

Any redundancies would be sad, but losing DEC in the process would not. Sorry, just how I feel. Nothing personal.

[fly123456]

"with the expansion of our passenger and freighter fleets"

When are the aircraft due to be delivered? Just to have an idea of how long it would take the airline to hire back those pilots it would have to lay off.

Talking about tough decisions, I would think about mandatory pay cuts, like it has happened in the past. A crisis is always a good time to bite on employees packages.

[markontop]

No government assistance.

CX often speak of how they unlike other airlines dont receive any form of government assistance. I would doubt it. CX would be Hong Kongs biggest employer and yet from all my experiences dealing with office staff, benefits, leave licensing etc. they all are very ineffecient and next to useless.
A while ago didnt CX purge a good number of these staff to try and trim the bottom line. The result still as useless as before. But a bonus to the companies costs.
Why does CX run such a huge number of office staff with questionable ability. My view is that is keeps the Government of HKSAR on side hence they are looked after.
Dont believe me about are weighty number of staff. Compare total number of staff with number of aircraft. By any stretch we are amongst the worlds most ineffecient.