I think you are absolutely correct in your assessment BG and that it has probably already been decided to remove the allowance permanently but to introduce the idea to crews one inch at a time. It's very unethical but as long as it makes 'good business sense' then the bad ethics will not trouble the conscience of those that made the decision one iota.

True talk.

I was just ready to opt-out from Meydan South... tired to "pay" 16000 aed/month for a place without facilities and risking my family lives at Al Alain road everyday.
What a surprise??? Just another break of contract from this low cost ! Unfortunately, I am not a big fan of Eastern Asia, yet...
I am just getting ready for the next cutting cost move... school bus to the airport or DEWA bills co-participation?
HELLO F... TODAY

It looks like the "what-do-you-expect-for-profit-share" thread will be very short this year.

I wouldn't understate nor overstate this erosion of T&Cs.

It's not good and doesn't feel like the previous freezes for obvious reasons.

What's more interesting is the psychological effect that these cuts (Salik latest) and increasing number of articles (Bloomberg, BBC 380) are starting to have.

The herd is starting to get a little unsettled, even if that pay cut "tiger" is still lying in the long grass without moving. Cautious survivors are getting more restless.

The talk around the kitchen tables has started to shift.

The equation of waiting a few more years has changed to "I don't want to be trying to get out when hundreds are on the move"

What business model provides more security for my future cash flow - China/Asia and its booming indigenous growth or EKs overcapacity, subsidized competition, low oil and Trump.

The stars are not aligning

This change, by itself and on the surface, is not really an issue. But taken in the context of history and, more importantly, what is happening now with cost cutting it becomes much larger.

If I had to guess I would say this is just the first step in a long series of measures to reduce costs. So I do find it worrisome since it is early days and the push to save money will only accelerate. To be blunt - if they think they can get away with it I would not doubt that they would do away with the allowance entirely even for those who currently own a property. It will come down down to cost vs. attrition vs recruitment vs advantage to Dubai Inc to having people own.

If they are cutting out expenses as small as Salik then the hurt going forward is going to be large!

When guys like CM arrive they cut hard and fast...kind of like the concept of pulling of a bandaid (to do it slowly is just more painful). CM knows beforehand that the process of 'saving EK' will be painful and that there is just no other way. I think the staff in the office are now well aware of this. The frontline employees..........well, we will just have to see how far they go in that area. We have been cut to the bone on the frontline but whether that is 'seen' or not is inconclusive.

Tough time are heading our way and I think to believe otherwise is foolish.

Cost cutting
 

Drivers are now avoiding salik.......

No, but the holes in the Flight Safety Swiss Cheese are starting to align in quite an alarming manner. And all this while EK's first priority is cost cutting rather than Safety.

One might assume the chap who made the profit forecast has left the building....

latest developments


saving 4aed for more Kilometers of driving, higher costs in car usage and longer driving times resulting in more drives needed to do the job.
but this isn't it at the end.
it does not look like a very high rated course of action. but considering the other latest things like roaster going to min rest even on Homebase this provides a clear message.
our off time does not count, updating EPT for hours because that little thing consumes GB's of data on our private account for hours and needs attention to fullfil the task. our rest starts 30min after block on so therefore nobody cares how long it takes for the individual to go to bed, because it is in your off time. all of that after exhausting night flights, useless forced leaves and etc.
at the end planning is wondering why people are fatigue and tired.
and then punish CC and FC for being fatigue sending them to sleep test and other medical punishments. does nobody in the higher hirachy wants to see was is destroying this airline. do the higher ones believe that PAX dont see and read whats wrong in this airline and the service will decline for high prices on tickets. do they really belive that only the dollar, the other airlines, and those people who need to start and support wars in the vicinity of this sandpit are those who are responsible for this miserable situation.


i am wondering when somebody has the guts to stop this internal roten athmosphere and starts building a team to accomplish the tasks to operate the airline.
obviously FC is another disturbing factor in airline managment and operation. outsourcing seems the main cue for them. outsource all time, money and manpower consuming items into the homes of FC and cut the costs buy using private internet connections, no Salik roads and etc. what will be the next step. Busses form medyan, crew hotel in HQ so dont need to drive home to your family at all.

The next thing will be a big car park at Meydan with a "Park and Ride" to EGHQ in those little death trap Hiace buses. The only thing stopping them doing it up to now is the whole operation would fall apart if people really did turn up 1Hr25mins before departure. They will soon work out it is cheaper to have a sensible report time (1Hr45mins maybe) and get rid of the Volvos. They could even charge us for the car parking. Win-win for the bean counters.

As was mentioned in a post above, it seems to me that the accommodation freeze gives them a chance to take stock of the situation before formulating a plan.
However, Salik savings and Volvo utilization are the penny pinching antics of worried management desperately trying to save their jobs.

3 superfluous levels of management, out of control HR & advertising/sponsorship departments, and insane airplane orders..... these are the big issues.
Not to mention staff morale and Costa profits.

I imagine Herr Mueller and his team noticed all that on day 1.
Let's see what they are allowed to do about it.

Regarding the accommodation allowance, it makes sound business sense to pay only the amount you provide a receipt for.

Of course this would upset s lot if staff who use it as a supplementary income. And it wouldn't take long for greedy dubai landlords to get wise to the fact they can charge EK staff the full allowance in rent, as they will no longer care how much It costs as long as it's covered by the company.

The allowance is also supposed to cover DEWA and housing tax - oops, "fee" so only paying the rental amount wouldn't work. As you say the landlords would soon figure it out as well.

I'm sure you gave them a good idea now. They would not have come up with such an idea on their own!:E;)

Come on pay cut will be 7% will be introduced in March in the form of vat, do you think we will get an increase.

Any sound reference for that, or is that a guess? Most insiders (and press) estimate 2%-7% VAT to be introduced in FY18-19.

Whilst some form of taxation is inevitable at some point, this thread is becoming more scaremongering by each post.

Things aren't great at the moment and a material improvement seems to be well beyond the horizon. However, the hand wringing here seems to be a little excessive. All IMHO of course.

VAT is implemented in UAE starting from March 2018 and the amount is 5% not 7%.......for now. So start calculating a 5% reduction in salary.

Is it just me, or have others noted the seemingly dramatic reduction in 2nd floor 'Costa Time' mid-morning on weekdays?

It's fantastic! Queues are shorter. Seats are plentiful! Why is this suddenly so?

Have they also applied a freeze on Moving people ? Otherwise it would not be a fair freeze.