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JAL announces 10 - 35% pay cut for employees.

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Old 11th Nov 2005, 02:55
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Unhappy JAL announces 10 - 35% pay cut for employees.

From the Japan Times.

Japan Airlines Corp announced Monday that rising fuel costs and falling passenger numbers pushed the carrier into the red in the fiscal 2005 first half and a full-year loss looms (FY Japan + April 1 - March 31) and it promptly announced a 10 percent wage cut on average for some 22,000 employees starting January and lasting through March 2008.

JAL reported a group net loss of JPY 12 billion in the first half, compared with a net profit of JPY 82.9 billion a year earlier, as it struggles with surging oil prices and a drop in domestic travellers as well as tourists going to China.

JAL's results were in stark contrast to rival All Nippon Airways Co (ANA) which saw record profits and sales.
During the April-September period, the nation's largest carrier saw its operating profit drop 82% to JPY 15.7 billion while sales rose 3,4% to JPY 1.1 trillion.

"The JAL group is in the midst of a harsh business environment", JAL President Toshiyuki Shinmachi told a news conference in Tokyo.
"And we need to reform ourselves to become a carrier that will be the choice of customers.
We have puffed ouselves up as the leader of the nation's aviation industry, but from now on we need to view ourselves as a challenger and work hard."

The carrier hopes to pare JPY 6 billion in annual costs via the staff wage cuts, which will affect employees of Japan Airlines Domestic Co. and Japan Airlines International Co., and their holding company JAL.

JAL board members will face a further 23% to 40% pay cut, compared with the 20% to 35% previously announced.

Other meaures include a JPY 60 billion safety-related investment between fiscal 2006 and fiscal 2010 in such areas as upgrading computer systems.
JAL will also spend some JPY 65 billion in 5 years from fiscal 2006 to boost customer services, including renovating airport facilities and upgrading inflight entertainment.

In addition, JAL will introduce 4 new Boeing 787 jetliners and 19 Boeing 737-800's in 3 years from fiscal 2006 while accelerating the retirement of aging Boeing 747-200's and 747-300's by the end of fiscal 2009.

JAL's first half setback was in clear contrast to ANA's rosy results.

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Does anyone (else) get the impression that the "necessary staff paycuts" are being used to fund the expansion and upgrading programmes?
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Old 11th Nov 2005, 10:47
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Is it normally their practice to extend such cuts to the foreign contractors?
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Old 12th Nov 2005, 07:13
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It depends on a few factors, 6feetunder:-
i) Which way the wind is blowing on the day a decision is finally made;
ii) How the particular Japanese manager at the time feels about gaijin;
iii) Whether the sashimi was fresh.

In other words, just because something was done a certain way last time, it doesn't mean the same will be done again the next time around.
The greatest consistency here in Japan is the continual change, and the INconsistency.

Mind you, all of us gaijin here would consider a pay cut fair for us, if our conditions of employment were the same as those of the Japanese.
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Old 13th Nov 2005, 01:00
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Kaptain M,

Always good to read your posts!

In training for a JAL (jalways) job myself and I surely are not looking to take a paycut..

It's like you said, had we been compensated the same as the mainline folks, then it would have been a different story. Now a days our salary is allowing them to collect their pension..

You're flying 737's? JTA? JEX?


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Old 15th Nov 2005, 12:39
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The answer to your question is "Yes", jetflyger
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