Rwanda’s national carrier RwandaAir has slashed its workers salaries up to 65% of their net pay in a move to avoid sinking in losses.
A leaked memo signed by the Chief Executive Yvone Makolo indicates that the lowest paid employee will lose 8% of their pay and those in top management will have 65% cut of the net salaries.
The company had also effected a suspension of non-essential contracts until further notice and extra measures in the statement show that the company had suspended all allowances including communication allowances, with a few exceptions.
Sources indicate the companies Chief Executive, her deputy and all directors will not get their April salaries as contracts for pilots have been suspended.
The chief executive officer of the company indicated that RwandAir is making these changes to avoid losses and maintain staff and there will be a re-negotiation of terms with the employees.
“Management has come to a difficult but necessary conclusion that, in order to maintain the current workforce, more stringent measures are required to avoid suspending all employment contracts from this April due to the pandemic,” the chief executive wrote.