KOREAN AIR RECEIVED SUBSIDY LOANS
 

Pilot Agencies Must Pressure Korean Air To Pay Foreign Pilots Their Rightful Entitlements During This Pandemic !


https://www.cnbc.com/2020/07/07/among-co...n-air.html



Korean Air’s U.S. operation received millions in federal small-business loans aimed to soften the blow of Covid-19, federal data shows.



The carrier received $5 million to $10 million in U.S. loans intended to help small businesses keep employees on their payrolls, according to a list of the largest recipients of loans in the Paycheck Protection Program released by the Trump administration on Monday.

The useless agencies do not give a fark!

Pilots get minimal info once a month

KAL staff do not respond to emails.

LorisB, KAL expat drivers not paid anything since March, no longer any return date.

Last week, several expat pilots on the 737 and 330 fleet were terminated.
777 expat crew have been on no pay leave since April.

It is actually all expat flightdeck crew (few exceptions of sim instructors and some 747 skippers who remained in Korea) have been on leave without pay since late March (some longer) to now with no return date.

Start of July all expat FOs, all A380 and B737 pilots terminated.

Most contracts at renewal since LWOP have not been renewed.

I believe both the US and South Korean governments provided KAL with monetary assistance for wage subsidy for all their employees.
Expat pilot contractors, no matter how the local Koreans want to spin it, are still employees. They are given employee IDs, password access, etc.
No way KAL can deny that they are part of their work force.

The pilot agencies must aggressively pursue this.

Don’t hold your breath for entities like worthless rishworth, ccl or tas to do anything.

these blood suckers will want to keep good relations with kal to maintain the gravy train.

the LOI scheme is a joke

Like many other countries, South Korea has experienced its share of challenges caused by the COVID-19 virus. Although Korea, as a whole, has avoided the need for lock-downs, mass business closures, and the like, the country’s economy has nonetheless suffered. In particular, the retail sector, as well as larger industries, such as the automotive sector, hospitality, airlines, etc. have been hit hard.

Under Korean labor laws, businesses that are forced to shut down due to disruptions in supply chains, cancellations of reservations, declines in sales, etc. are generally regarded as managerial disruptions that are caused by the employer because they are viewed as actions within the employer’s control. Thus, despite the unprecedented circumstances arising from COVID-19, most employers are nonetheless required to pay their employees a business shutdown allowance – which is generally an amount equal to at least 70% of an employee’s ordinary/average wages. Exceptions to this situation include shutdowns imposed by government orders or other laws, or employers who are able to implement voluntary unpaid leave for their employees.

Notwithstanding Korea’s labor laws that compel employers to pay their employees the above-described shutdown allowance, the Ministry of Employment and Labor (“MOEL”) recently announced that it will temporarily ease the requirements and increase the amount of the Employment Maintenance (Retention) Subsidies (“EMS”) available to employers. In short, the EMS is a type of government subsidy for employers. It is intended to allow employers to pay their employees and to thereby maintain their workforce.

Qualifications for the subsidy include the following: maintaining the current employees while exercising “rescue” measures for at least one month, such as, (a) a temporary suspension of business while granting paid leave to the employees; or (b) reduced employee work hours which are in excess of 20% of the total working hours; etc.

The EMS itself may provide for government reimbursement of up to 75% of the labor cost that an employer paid to its employees for a maximum of 180 days (up to a daily limit of KRW 66,000 per employee, depending on the size of the company). For businesses in special sectors such as the tourism and entertainment industries, the daily limit was temporarily increased to KRW 70,000 per employee, for a maximum of 180 days.

To apply for EMS, an employer should (1) implement reduced working hours (that is, a reduction of working hours in excess of 20% of the total working hours of all insured employees per calendar month), or (2) grant “paid leave” to employees for a period of at least one month. The employer must submit a specific plan for reduced working hours or temporary suspension of its business/granting paid leave to employees at least one day prior to the implementation of the plan. If the employer implements the measures according to the submitted plan, and pays the employee salaries/shutdown allowances, the government subsidies will be granted. Any change to the plan must be reported one day before the day the changes are implemented. It is also noted that subsidies are only given to employees who are insured by statutory Employment Insurance. The subsidies will not be granted if the employer hires new employees during the period of employee retention, if the employer undertakes workforce restructuring, implements early retirement, or any other intentional reduction of workforce during or within one month of the end of the employee retention period, etc.

Additionally, on March 25, the MOEL announced that it will increase the amount of the EMS granted for employers to up to 90% of the allowance paid to employees from April 1 to June 30, 2020. This will be applicable to SMEs in all industry sectors.

Since the Korean government has been regularly updating their policies and measures to support businesses, it is recommended that businesses first consult with a legal advisor for the latest information and advice.

https://www.jdsupra.com/legalnews/co...ailable-36357/

It is f***ing disgusting to me that KAL has all this support from the Korean government, will purportedly report a profit for the second consecutive quarter during the pandemic, and still force foreign employees to remain on a leave without pay. As I understand, KAL does not pay the government for the statutory Employment Insurance for foreign pilots, therefore they are ineligible for compensation. I agree with Chuck Canuck, it is unfathomable that foreign pilots are not "employees" and this insurance is not paid.

It is nearly as disconcerting that KAL would apply for a loan through the USA's Paycheck Protection Program to supposedly cover the payrolls of the employees in the USA when I have to be certain these folks ARE covered by the Korean government Employment Insurance. This sickens me, but the fact the USA actually gave KAL $10m usd is simply a travesty, I'm sure there are several American businesses that need this money more than a foreign-owned airline that continues to profit during the worst financial period in aviation history. Shame on both KAL and the USA!! I am willing to wager that none of the American pilots wearing the Korean uniform and possessing a KAL ID has received a single dollar of this money. Of course, they are not really employees, so...

Also, I may be wrong but I think the PPP loan KAL received is forgivable as long as certain conditions are met. Think about that! KAL is making money, gets a $10m check from a foreign government they do not have to repay, yet keeps employees (or whatever those pesky foreign pilots are considered), including AMERICAN employees, suffering without dollar in assistance and doing it without a care or concern whatsoever.

Wrong.

Why would KAL U.S employees paying U.S federal and state income taxes be covered under Korean EI? They don't pay any tax to Korean government.

They are covered under their state unemployment in U.S. So those U.S federal loans are used to cover KAL U.S employees payroll.

Wrong again. 2020 Q1 was negative.

Thanks for the fact check, Mr Lee! Since you are a stickler for accuracy, you may be interested to know that the US pilots that fly for the Cho's are not eligible for state unemployment in their states as none of the tax KAL pays on their behalf goes into the state's unemployment insurance program. So, since these pilots are not viewed as employees by KAL, the company does not have to pay into the Korean EI and, since these pilots do not fly for a company that pays into the US EI programs, they do not receive unemployment payments from their state. The US pilots have had some relief from the FEDERAL government due to the CARES Act that was enacted at the beginning of the pandemic that provided a weekly stipend but this will end at the end of July. This stipend from the Federal government is normally not paid to anyone that has become unemployed and they are to rely solely on their state's unemployment payments.

Hey!! Good luck getting an airline job someday, Mr Lee! You seem like the kind of guy that management would love and you can advance far up the management pilot ranks; your career seems promising. However, I doubt many guys would like to fly with you. I know I wouldn't give you any takeoffs or landings.

Cheers!

Oh, and by the way, spin it however you like, but the fact that KAL is profiting during the pandemic, yet mooches funding off a foreign government intended to keep small businesses from collapsing, is a travesty. ANY company that is profiting and has the unethical nerve to apply for this loan should be heavily penalized, but a foreign company owned and operated by silver-spoon billionaires should be banished from doing business in that country.

I don't work for a Korean company and I do not plan to apply for a job at Korean Air.

I was just simply correcting your statement regarding KAL US employees eligible for Korean EI which is not the case. Would it be better for KAL US employees to be let go when Federal loans can be used to pay them to keep their lives intact for now? So good on KAL to apply for the loan and keep the US employees paid then!

Oh did you know Delta's Canadian employees in Canada are also living off from the CARES Act? What do you think about that? Canadian communists leaching off from U.S taxpayers funded program! Yet you have a problem with KAL applying for a US federal loan to pay US employees' salaries?

You don't have to lecture me about my relationship with my colleagues. I get along with them just fine.

You do realize that the funding for supporting airlines in Korea by Korean government is running out as of August 1st or September 1st right? Locals will be expected to go on unpaid leave as well.

With your reason, some US ACMI cargo carriers (I think it is Atlas Air or ATSG or even both) should be punished too for receiving the loans when they are clearly making tons of profits.

What do you think about this then?

KAL Expat pilots paid taxes in Korea as evidenced by the tax certificates I believe.

Unconscionable for expat pilots not to be paid wage subsidy when they clearly contributed tax as well as saved the Korean airline companies from disaster when the safety records were abysmal.
The conscientious Korean public and law makers should take note of this travesty.

The silence amongst ppruner contractor pilots is deafening. The industry looks unlikely to recover for at least a year or so. By then the Korean government would have mandated that local airlines employ only the locals many of whom from the LCCs, in addition to those laid off from China and the Middle East.

You guys in KAL and Asiana are finished!
,

The agencies are looking after their own long term interests...even though they would still get their cut from any wage subsidies if they fight for their pilots.

Silence?
Pprune of yore long gone.
Nobody cares.
The fat cats are laughing.
Contractors? Impotency is your lot now.
Sell your toys and bide your time.
’ Nuff said...

Wage subsidies are done on Aug 31st with no news of extensions.

Average public John Dos and Jane Dos do not give a damn about pilots, especially foreign pilots. They just want the lowest air fares for their own travels.

Law makers are probably preoccupied with the sales of Asiana which fell through. I actually want to see Asiana go under so that tax payers don't have to pour money into this horribly mismanaged company. Definitely not employees' fault but the owners of Kumho Asiana Group for sure.

One law maker who is actually the owner of EastarJet is in the spot light for setting up a paper company under his son's and daughter's name with some dubious transactions so that his kids take full control of the airline. Since COVID-19, this family has been trying to sell all their shares to Jeju Air in the process of merger and walk off with millions of dollars in their hands whilst all EasterJet employees have been on unpaid leave or working without pay for months.

A company like EastarJet, which asked for $100,000 for "training fees" for new FOs deserve go out of the business.

See how F'ed up this country is?

As continued losses in the second quarter are expected for the aviation industry over COVID-19 pandemic, the South Korean government is expected to roll out an upgraded support measure for cash-strapped air carriers this week, according to the government sources on Sunday.

According to the government, the fifth round of emergency economic council meetings presided over by President Moon Jae-in is set to take place this week.

President Moon has been reiterating the need to support ailing companies amid the economic downturn stemming from the impact of the COVID-19 pandemic.

“The government will preferentially support the companies which retain job security through management-labor agreement,” President Moon said in a speech during a ceremony to mark the 60th anniversary of the 1960 pro-democracy revolution on Sunday.

Local media outlets reported the same day that a fresh set of measures expected to roll out this week are likely to include the government guaranteeing 20 trillion won ($16.4 billion) in corporate bonds. The bonds are expected to help support air carriers like Korean Air and Asiana Airlines, which have to pay back loans worth a combined 2.5 trillion won by year-end, media reported.

But the Ministry of Economy and Finance released a statement that nothing has been confirmed on the agenda of the meeting and the details of the measure.

If executed, it would be the third set of support measures for the aviation industry in two months. In February, the government announced it would extend loans worth a total of 300 billion won to airlines facing a liquidity crunch through the state-run Korea Development Bank. The government has also allowed air carriers to defer airport usage fees.

Last month, the government also rolled out a plan to inject some 50 billion won to help the transport sector by exempting fees and delaying payments to cover the businesses’ losses caused by a sharp drop in passengers.

But earlier this month, the Korea Civil Aviation Association submitted a petition to the government to exempt all taxes and to increase subsidies for “practical support.” This led to the Jung-gu district office in Incheon and Gangseo-gu district office in Seoul to review a legislation revision on decreasing property taxes for aircraft.

Korean Air, which has suspended 90 percent of its flight routes, has shut down the majority of its international routes, which contribute to 94 percent of its sales. Despite the limited income, the air carrier has been spending at least 400 billion won monthly for stationing aircraft at parking ramps, as well as paying rental fees for leased planes.

Asiana Airlines has also extended all employees’ unpaid leave for at least 15 days, until business volume is “normalized,” according to the company on Sunday.

By Kim Da-sol ([email protected])

Government to roll out additional support plan for COVID-19-hit aviation industry

Earlier I wrote of a friend’s experience with his agency about latest LWOP extension. No wage subsidies considered.

That post was rejected outright...

Pprune utterly f@@@@@