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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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Turkish Airlines pay cur

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.”

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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.

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.

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“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.

“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.

Patricia

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

Deap Capital Management & Trust Plc reacts to ‘rumoured’ AMCON takeover

AMCON had dragged the company before a Court in a bid to recover the debt.

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Deap Capital Management & Trust Plc

Deap Capital Management & Trust Plc has reacted to media reports about the supposed takeover of its assets by the Asset Management Company of Nigeria, AMCON.

In a statement that was signed by the Company Secretary, Yetunde Fashesin-Sousa, Deap Capital admitted that it is indebted to AMCON to the tune of N1.6 billion. It was also confirmed that AMCON owns a 20% equity stake in the fund management firm.

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Note that the indebtedness arose after AMCON took over ownership of certain banks. Apparently, these are banks that Deap Capital originally owed. However, following the transfer of the unnamed banks’ assets to AMCON, the debts were also transferred alongside.

Meanwhile, AMCON had dragged the company before the Federal High Court in Lagos in a bid to recover the debt. A ruling on the case, which was delivered on January 28 by the Hon Justice John Terhemba Tsoho, was in AMCON’s favour.

Following the ruling, AMCON began the process of recovering the debt from Deap Capital Management & Trust Plc. The company said it has been cooperating in this regard by working towards repaying the debt.

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The company also clarified that the assets that were taken over by AMCON belonged to its former directors whose names were not mentioned. Nairametrics could not verify if these directors are among those who were recently reinstated by the Securities and Exchange Commission, SEC. But we do know that AMCON had obtained a court order to attach the ‘former directors’ assets’ in its attempt to recover the N1.6 billion debt.

In the meantime, Deap Capital Management & Trust Plc said it is committed to resolving its operational challenges, including the recovery of its operational license and profitability issues.  The company’s latest earnings report (for its Q1 period ended December 31st, 2019) showed a total income of N1 billion. There was also a N6.3 million loss for the period under review.

Deap Capital’s stock opened today’s trading session on the Nigerian Stock Exchange with a share price of N0.30. Year to date, the stock has declined by some -18%.

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Lafarge Africa Plc. announces its board meeting and closed period for Q2 2020 

The notification which was duly signed by General Counsel & Company Secretary.

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Lafarge Africa

Lafarge Africa Plc. notified the Nigerian Stock Exchange and the investing public that he closed period will commence on Wednesday, 8th July 2020 until the unaudited financial statement for the second quarter ended 30th June 2020, is released to the Nigerian Stock Exchange. 

In a disclosure on the Nigerian Stock Exchange, it wrote: “We hereby notify the Nigerian Stock Exchange and the investing public that a meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 23rd July 2020 to consider the second quarter financial results of the Company for the quarter ended 30th June 2020.”  

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The notification which was duly signed by General Counsel & Company Secretary, Mrs. Adewunmi Alode explained further stating that “Accordingly, no Director, employee, persons discharging managerial responsibility and Advisers of the Company and their connected persons may directly or indirectly deal in the shares of the Company in any manner during the closed period.” 

Over the past few months, it made a few board changes with the retirement of two of its Non-Executive Directors, as well as the appointment of three new DirectorsIt had also spun off its South African subsidiary, Lafarge South Africa Holdings (LSAH), last year. 

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READ MORE: NSE’s statement in reaction to the Visionscape Municipality Bond Default

Lafarge Africa’s Q1 2020 revenue was up 9.8% year-on-year to N63.7 billion, driven by higher Cement Sales (a figure up 11% year-on-year to N62.3 billion) which offset the weakness in Aggregate and Concrete (down 21% y/y to N1.4bn). Its EBITDA grew by 2.4% year-on-year to N19.3 billion as well. As at Tuesday the 7th of July, the share price of the company was N10.00 

 

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Companies

AXA Mansard Insurance Plc gives notice of Annual General Meeting 

The AGM will be live-streamed to enable shareholders and stakeholders participate.

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AXA Mansard Insurance Plc

Insurance firm, AXA Mansard Insurance Plc., has given notice of its board of its Annual General Meeting (AGM) scheduled for Wednesday, July 29, 2020, at 10:00 a.m.  

The announcement which was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure on July 7th, 2020 and signed by Company Secretary, Omowunmi Mabel Adewusi read, “Notice is hereby given that the twenty-eighth annual general meeting of AXA Mansard Insurance Plc. will hold at the Oriental Hotel, no. 3, Lekki Road, Victoria Island, Lagos on Wednesday, July 29, 2020, at 10:00 a.m.” 

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READ ALSO: AXA Mansard divests from its pension and real estate ventures

As noted, the purpose of the AGM is to transact the following business: 

  1. To receive the Audited Financial Statements for the year ended December 31, 2019, and the Reports of the Directors, Auditors and Statutory Audit Committee thereon 
  2. To authorise Directors to fix the remuneration of the Auditors 
  3. To elect Directors and 
  4. To elect members of the Statutory Audit Committee.  

In order to ensure that all relevant stakeholders can be a part of the AGM, the company will also be streaming the AGM live. It noted that “This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings.” 

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The link for the live streaming of the Meeting will be made available on the Company’s website at www.axamansard.com. 

READ MORE: Sterling Bank’s earnings to remain pressured but valuations still attractive

Recall that a few months ago, in March, the company’s Board of Directors announced the appointment of John Dickson as the company’s new Non-Executive Director. A month earlier, it also disclosed its plan to sell its pension management subsidiary (AXA Mansard Pensions Ltd) and some undisclosed real estate investments. 

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Its unaudited financials for the period Q1 2020 reveal a growth across revenue and profit lines. Gross written premium grew by 21% from N17.4 billion earned in Q1 2019 to N21 billion in Q1 2020. Profit for the year for the group grew by a commendable 120% from N890 million in Q1 2019 to N1.9 billion in Q1 2020. 

As at Tuesday, the 7th of July when markets closed, the share price of the company was N1.59. The company’s EPS stood at 0.33 while its price to book ratio stood at 0.6082. 

 

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