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Companies

Arik Air bows to pressure, implements 80% salary cut for staff in April

The management of Arik Air issued a mail to all workers that it has implemented 80% salary cut for its personnel for the month of April.

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COVID-19: Arik Air suspends flights to West Coast, COVID-19: Arik Air. Aero, Dana, others suspend flight operations, Arik Air to resume flights on July 8 as FG lifts ban on air travel

It is indeed a Black April for local airline workers, especially staff of Arik Air, one of Nigeria’s major airline, as the airline confirmed Nairametrics’ earlier report that disclosed that the airline would right size in few weeks. Two days after the exposé, the management of Arik Air issued a mail to all workers that it has implemented 80% salary cut for its personnel for the month of April.

That is not all. The airline also ordered 90% of its 1,800 staff to proceed on leave without pay until further notice. This was disclosed in an email signed by the Chief Executive Officer of the airline, Captain Roy Ilegbolu, and sent to all staff yesterday. It stated that the suspension would be subject to monthly review.

Meanwhile, Nairametrics had reported that the airline had told the workers that it could only pay them half of their salaries.

READ ALSO: Analysis: Corona Pandemic for Nigerian Tech Startups

A manager in the airline, who prefers anonymity, told Nairametrics that the management had told all workers across the nation that it would slash salaries for obvious reasons.

He said, “It was so sad when we were informed. Nobody planned for what happened and we have no other choice but to re-strategise in order to make ends meet.

“The plan of the airline is to right-size the workforce. Information I got from Lagos confirmed that about 50% of the workforce may be forced to resign and that is more devastating than slashing salaries due to lockdown.”

Why it matters: A source in Arik Air told Nairametrics that Ilegbolu stated that the global economic crisis triggered by COVID-19 pandemic and that has affected the world, creating uncertainty and Nigeria is not isolated from that development.

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Ilegbolu said in the mail, “After careful deliberation and analyses, management has decided to implement an 80 per cent pay cut for all members of staff across the entire organisation for the month of April 2020. Furthermore, commencing from May 1st 2020, no less than 90 per cent of our staff will proceed on leave without pay until further notice. This position will be reviewed on a monthly basis and communications on further developments will be shared by our HR department as the situation evolves.

READ MORE: PwC’s Andrew Nevin urges FG to provide more economic stimulus amid Covid-19

“With the current observed trend of events, it is prudent to lean on the assumption that the situation is likely to persist for a while longer.”

“Of huge significance to us is that we have suffered a sharp decline of over 98% in our revenue streams since the suspension of our scheduled flights almost four weeks ago. Added to this is the rapid decline in the value of the naira by over 35% against the benchmark and with oil prices now falling well below $15 per barrel, it is evident that we must, without further delay, take decisive action to preserve our organisation.”

According to the Arik boss, the focus of the management has always hinged on the well-being and safety of the staff, managing liquidity as an organisation and creating the opportunity to ride out of inclement circumstances such as the one it is faced today.

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READ ALSO: Emirates Airline cuts staff salaries, suspends all passenger flights from March 25

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To further cut cost, Arik has reached out to its suppliers, specifically negotiating reduced rates on all contracted services and mitigating operational expenses due to changes in demand. It has also implemented contingency plans for staff and introduced operational support flexibility.

Ilegbolu added that the outlook for the near future is not encouraging, and that the airline’s current level of business simply cannot support its operations for much longer.

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Companies

Peter Obaseki retires as Executive Director from the Board of FCMB Plc

Mr Peter Obaseki has retired as a Director on the Board of FCMB Group Plc.

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First City Monument Bank Ltd issues N20 billion commercial paper

The Board of FCMB Group Plc has announced the retirement of Mr Peter Obaseki as an Executive Director of the company.

The notification is part of the decisions reached at the company’s Board meeting held today, 26th of February, 2021.

According to the disclosure signed by the company’s secretary, Mrs. Olufunmilayo Adedibu, the retirement of Mr Obaseki from the Board of the company will become effective from 1st of March, 2021.

In lieu of this, the Board wished the outgoing Director well in his future endeavours and accepted his retirement in good faith. Other decisions reached at the Board of Directors’ meeting include;

  • The Board considered and approved the appointment of an Independent Non-Executive Director, subject to CBN approval.
  • It also considered and approved the Group’s audited financial statements for the year ended December 31, 2020 as well as payment of Dividend, subject to the approval of the CBN.

What you should know about Obaseki:

  • Mr. Peter Obaseki has over 27 years working experience across financial consulting and banking. Prior to joining FCMB Plc in 1997, Mr Obaseki gained valuable experience in firms like KPMG, Ani, Ogunde & Co and some banks.
  • He is a fellow of the Chartered Institute of Bankers and was appointed an executive director of FCMB in September 2008.
  • Apart from being an Executive Director, Mr. Peter Obaseki also doubled as the Chief Operating Officer of FCMB.

FCMB closed trading with a share price of N3.03 as at the 26th of February 2021.

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Companies

Arvind Pathak, Deputy GMD of Dangote Cement resigns

The Deputy Group Managing Director of Dangote Cement has resigned his role on the Board of the company.

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Arvind Pathak, Deputy GMD of Dangote Cement resigns

Dangote Cement Plc has announced the resignation of its Deputy Group Managing Director, Arvind Pathak.

In line with the disclosure issued by the company, the Board of Directors of Dangote Cement after accepting Pathak’s request disclosed that his resignation will take effect from the 25th of February 2021.

The Board of Dangote Cement appreciates him for his commitment and contributions to the Board, and also wishes him well in his future endeavours.

READ: Dangote Cement shares gain N605 billion in a week amid share buyback plans

What you should know

  • Pathak was appointed to the Board of Dangote Cement Plc on October 29, 2019, as Deputy Group Managing Director.
  • Prior to his appointment as Deputy GMD, he was the Chief Operating Officer of Dangote Cement, a position he held between 2018 and 2019.
  • Prior to joining DCP, he has worked in various leadership roles in the cement industry, he has 30 years of experience in the cement industry.

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