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Turkish Airlines tells staff to expect 55% pay cut in April

Turkish Airlines has implemented a 55% and 30% pay cut for senior and junior staff in April, while some employees were dismissed

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The effect of the Coronavirus pandemic has eaten deep into the fabric of the Nigerian aviation sector. Last week, Nairametrics reported that while some local airlines had told their staff not to expect April salary, some slashed salaries by 50% or more, and others told 90% of their workers to embark on unpaid leave.

In separate interviews, some of the victims admitted to Nairametrics that they envied their colleagues working with International airlines that operate in Nigeria. One of them, who preferred anonymity, said, “I envy a friend that joined Turkish Airlines recently. Barely, four months that he joined, he was promoted with a 20% salary increase. People working with local airlines would bear the brunt, as our counterparts still have job security.”

Little did he know that providence had other plans for the staff of Turkish Airlines. To their dismay, the management of the airline sent a mail to all staff (about 100) on April 23, 2020, to break the news that shook them all.

In the letter, the airline stated that from April 1, 2020, salaries of all senior staff (Manager and above) would be slashed by 55% and their junior colleagues should only expect 70% of their salaries. That is not all. A great number of the workers in Lagos and Port Harcourt, Rivers State were relieved of their duties, while some were forced to embark on unpaid leave. These directives will be effective until further notice.

One of the staff based in Lagos, who prefers anonymity, told Nairametrics that he was devastated when he read the mail. According to him, he knew the Nigerian market was not isolated from the global trend and he also knew that the lockdown would affect the airline to a certain degree, but not to the extent of losing his job when he had just gotten married recently.

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READ MORE: Airlines cut down flights due to COVID-19 outbreak, many may lose their jobs

He lamented, “I am confused and sad not just because of the effect of the lockdown, but the management had promised that none of us would be sacked and already prepared our minds ahead for the salary cut. I don’t really know where to turn or what the future holds for my family.”

Another staff, who also pleaded anonymity, alleged that it appeared that the management was confused, as he picked holes in the letter sent to the staff, which was seen by Nairametrics. According to him, on one hand, the company stated they should all embark on unpaid leave, while on the other, it added that some of the leave days would be paid for.

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“When I spoke with my colleagues in Abuja, I found that they were not asked to go on unpaid leave but only their salaries were cut by 55% and 30%. What we do not understand is that the stated four conditions in the letter only affected staff in Lagos and Port Harcourt. We have reported the case to Abuja and Headquarters but no response,” he said.

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What the mail says:

The mail, which was signed by one Saygılarımla, stated, “Following the reported cases of Coronavirus (COVID-19) Worldwide including Nigeria, Turkish Airlines Management has issued a directive and allow employees to work from home.

“Suspending flights to all Turkish Airlines international network until further notice has led to an overwhelming reduction of business income. After considering all possible options, the Company has concluded that there is considerable risk that it will be unable to meet its recurrent expenses and it is, therefore, necessary to consider immediate cost-cutting measures to address the reduced cash flow.

“The Company wishes to avoid taking any terminations or redundancies so far as possible and would like as much as possible to arrive at any cost-cutting measure having consulted with all employees to arrive at an amicable decision.

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“Company is now asking you to accept voluntarily the all following immediate cost-cutting choices of Temporarily proceeding on unpaid leave; Temporarily agreeing to a 30% salary reduction beginning 1 April; Temporarily working on a part-time basis; Utilizing all accumulated and available leave days as necessary.

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“The above measures are intended to be temporary as the situation surrounding the current ascertained and it is hoped that all payments and benefits shall be restored as soon as normal business operations resume.

“We note that the above measures may not seem ideal to all employees and some may seek to retain the current status quo by retaining full salaries, benefits and leave days. However, please note that these measures are being proposed in order to maintain the viability of the business operations of the Company and maintaining the status quo at the moment may not be possible.”

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READ MORE: British Airways beats FAAN’s deadline, relocates to Nnamdi Azikiwe’s new terminal

Turkish Airlines may not be the last among international airlines operating in Nigeria to take such measures. There are indications that South Africa Airways may soon dismiss its staff in Nigeria due to some liquidity issues, which were worsened by the COVID-19 pandemic.

A few weeks ago, the state-owned carrier, suffered the latest in a series of financial setbacks after the government rejected a request by practitioners administering a restructuring of the airline for an additional 10 billion rand ($526 million) in funding.

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

Cutix Plc forecasts N148 million profit in Q4 2021

Cutix Plc has projected that its revenue will double and profit will increase by 9% to N148 million.

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Cutix Plc, dividend

Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.

READ: Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020

Key highlights of the earnings forecast for Q4 ended April 30, 2021

  • Revenue to increase to N1.66billion, 100% Q-o-Q.
  • Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
  • Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
  • Other Income to remain unchanged at N2.50 million,
  • Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
  • Operating income to increase to N227.83 million, 14% Q-o-Q.
  • Taxation is projected at N79.74 million.
  • While Profit attributable shareholders is projected at N148.10 million.

READ: Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021

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Bottom line

The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.

READ: Okomu Oil Plc records 27.01% decline in 2020 Q3 revenues

However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.

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Companies

PZ Cussons proposes dividend payout of N397 million to the shareholders

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397 million to the shareholders of the company.

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PZ Cussons Plc, PZ Cussons Nigeria Plc

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397.047 million to the shareholders of the company who currently hold the 3,970,477,045 fully paid ordinary shares of the company.

This disclosure was made public by the company in a notification issued and signed by the Company Secretary, Jacqueline Ezeokwelume, today the 7 January 2021.

She explained further that if the dividend of ten (10) Kobo per share recommended by Directors is approved by members at the Annual 72nd General Meeting, the dividend payments will be made on Monday, 1 February 2021.

What you should know

  • The Register of Members and Transfer Books of the Company will be closed from Monday, 11 January 2021 to Friday, 15 January 2021 (both dates inclusive) for the purpose of preparing an up-to-date Register of Members.
  • However, only shareholders whose names appear in the Register of Members and Transfer Books at the close of business on 19th October 2020 will receive the dividend on Monday, 1 February 2021.

What they are saying

Mr. Gbenga Oyebode, MFR, the Chairman of PZ Cussons Nigeria Plc, in his address said:

  • “Fellow shareholders, the Board of Directors is recommending to the shareholders at this AGM, a dividend pay-out of N397,047,700 representing 10 Kobo per share (2019: 15 Kobo per share). If approved, the dividend will be paid to shareholders on Monday, 1 February 2021 after deducting the appropriate withholding tax.”

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Companies

Neimeth proposes N123.45 million dividend to be distributed to shareholders

Neimeth has proposed a total final dividend of N123.45 million to be distributed to the shareholders of the company.

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Neimeth Pharmaceuticals

The Board of Directors of Neimeth International Pharmaceuticals Plc, has proposed a total final dividend of N123.45 million to be distributed to the shareholders of the company, as final dividend for the period ended 30th September 2020.

This information is contained in a corporate action announcement dated 30th December 2020, issued and signed by the Company Secretary, Mrs Florence Onyenekwe.

According to the announcement, the final dividend which sums up to N123.45 million when approved at the next Annual General Meeting (AGM) on 9th March 2021, will be paid to shareholders of the company who own the 1,250,844,000 ordinary shares of the company. This translates to a Final Dividend payment of 6.5 Kobo per share.

What you should know

  • The final dividend of 6.5 Kobo per share will be paid for all the outstanding 1,899,157,107 ordinary shares of the company. This gives a total dividend of N123,445,211.95, to be distributed to the shareholders of the company.
  • To enable Neimeth’s Registrars, Meristem Registrars and Probate Services Limited, prepare for the payment of the final dividend, the Register of Shareholders will be closed from 23rd February 2021 to 28th February 2021.
  • The dividend will be paid on 12th March 2021, electronically to shareholders whose names appear on the Register of Members as at 12th March 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividend directly into their Bank accounts.
  • Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.

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