August 12, 2020

The Latam pilots union in Peru agrees to reduce their wages to 50%

The Union of Pilots of Latam Peru (Siplap) accepted the company’s proposal to reduce its salary by 50% due to the decrease in operations of the Chilean airline due to the closure of borders of several South American countries due to the spread of the COVID coronavirus- 19.

The union organization expressed its decision in a statement where it stresses that it has “a very high percentage of support and acceptance” by its members, who exceed half a thousand.

“We want to emphasize that the cut of 50% of our wages is a voluntary measure of union and support not only for the company, but for ourselves,” the statement stressed.

The union argued that the sacrifice will help prevent mass layoffs and thus maintain their jobs for the livelihood of their families.

The proposal to reduce wages emerged on Wednesday from the company’s management in meetings with union leaders and initially contemplates three months (April, May and June), according to the Diario Financiero de Chile.

On Monday, Latam, which employs 43,000 people, announced in a statement that it has reduced its operations to 70%, with a decrease of 90% in its international flights and 40% in domestic flights in the different countries of the continent where it operates.

In Peru, where Latam has the first position in the market, domestic and international flights have been canceled since Tuesday, after the closure of borders, among other government provisions for the mandatory isolation of the population that helps prevent the expansion of the coronavirus.

Latam’s commercial vice president, Roberto Alvo, said then that the company is “working to ensure the group’s long-term sustainability and protect the jobs of the 43,000 employees.”

“However, the magnitude and unpredictability of this crisis make it difficult to anticipate results. This is why we are going to require the support of governments to overcome the greatest crisis in history for the tourism and civil aviation sectors,” he said. Alvo.

The requirement to reduce workers’ wages came after the Chilean government denied aid to Latin America to weather this crisis, which also caused its stock price to plummet.


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