ANA recruits volunteer for retirement - wage cuts would reduce annual income by 30%

 Recently Nihon Keizai Shimbun electronic version reported the following:

ANA、希望退職を募集　賃金カットで年収3割減に

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2020/10/7 18:49 (2020/10/8 5:31更新) 日本経済新聞　電子版

全日本空輸（ANA）が退職金を割り増す新たな希望退職の実施を労働組合に提案したことが7日、分かった。新型コロナウイルスの感染拡大で経営状況が悪化するなか、コスト削減を急ぐ。2020年度の一般社員の冬季賞与もゼロにするほか月例賃金も減らす。年収は3割減る見通しだ。

希望退職の詳細は今後労組と交渉して決める。ANAは1992年から希望退職制度を設けている。人件費の圧縮へ、退職金を積み増して新たに募集する。

ANAは賞与を生活給の一部と位置づけ、冬季は例年月例賃金の2カ月分を支給してきた。この部分の支給をやめる。夏季賞与は1カ月分に半減させていた。一般社員に加え、非組合員の管理職も冬季賞与をゼロとするほか、役員報酬のカットも拡大する。

給与減額の対象になる従業員は約1万5千人。一般職まで含めて賃金を減額するのは20年ぶりだ。キャリアアップに向けた活動に使う無給の休業制度も最大2年設ける。春に実施した従業員の一時帰休は継続する。

持ち株会社のANAホールディングス（HD）の20年4～6月期決算は最終損益が1088億円の赤字だった。6月までに借り入れや融資枠の設定で約1兆円の手元資金を確保し当面の運転資金にはメドがついているものの、資金流出を抑えるために自助努力によるコスト削減が急務となっている。

Translation

It was revealed on the 7th that All Nippon Airways (ANA) had proposed to the labor union to implement a new voluntary retirement program that would increase the retirement allowance. As the business situation deteriorated due to the spread of the new coronavirus infection, it would hurry to reduce costs. In addition to reducing winter bonuses to zero for the general employees in 2020, monthly wages would also be reduced. Annual income was expected to decrease by 30%.

Details of voluntary retirement would be decided through negotiations with the union in the future. ANA had established a voluntary retirement program since 1992. To reduce labor costs, it might increase retirement allowances to recruit new volunteers.

ANA had placed bonuses as part of the daily wages and had paid two months' worth of monthly wages in winter. Payment of this part was stop. Summer bonuses were to be halved for each month. In addition to general employees, non-union managers would also receive zero winter bonuses, and the cutting on the remuneration of the executive would be expanded.

Approximately 15,000 employees were subjected to the salary reduction. It was the first time in 20 years that wages was reduced, including for general employees. An unpaid leave system for career advancement activities would be set for up to two years. Employees' temporary leave enforced in the spring would be continued.

The holding company ANA Holdings (HD) reported a net loss of 108.8 billion yen in the April-June period of 2020. By June, it had secured about 1 trillion yen in cash on hand and by setting up credit lines; although working capital prospects for the immediate future were without problems, there was an urgent need to reduce costs through self-help efforts in order to curb the outflow of funds.

              So, globally all airline companies are having a hard time due to the Covid-19 pandemic.