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Letters | How Cathay lay-offs will impact much more than fired Hong Kong staff
- The decision to axe thousands of staff affects their families as well, will hurt the morale of those left behind and inspire other big firms to follow suit
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I refer to your report, “Cathay axes record 5,300 Hong Kong jobs and closes regional airline in HK$2.2 billion survival plan” (October 23).
To begin with, Cathay’s decision to lay off thousands of workers worsened the company’s image. Many of the employees affected by the Cathay management’s sudden announcement were their families’ breadwinners. Consequently, this decision not only affects 5,300 employees, but also has a great impact on 5,300 families. It’s clear that the company only cares about its own corporate interests and is willing to sacrifice the well-being of its employees to reduce operating expenses.
When a company abandons its employees in a crisis, with a majority of staff already agreeing to take unpaid leave to support cost-cutting measures made necessary by the pandemic, many of those who have a strong sense of belonging to the company and even regard it as their family will feel betrayed.
Moreover, morale among staff left behind will take a hit. Cabin crew and pilots who were not laid off have been asked to sign new cost-saving contracts which involve new terms with lower pay and perks. Because the new contracts are based on flight hours, pay could be significantly cut when the airline is idle. The new contract just implies to the remaining employees that they could well be next in the firing line.
03:43
Cathay Pacific Airways announces its largest job cuts in history
Cathay Pacific Airways announces its largest job cuts in history
In addition, this decision could set a precedent for other major companies. Due to the coronavirus pandemic, many companies have suffered an enormous financial losses; Cathay Pacific is not an exception.
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Cathay Pacific is one of Hong Kong’s biggest employers, and its action may become a role model for other large companies. When other companies run into business difficulties in the future, lay-offs may well be their preferred policy. In the long run, the interests of workers are not protected.
All companies should take the interests of employees into account before making drastic policy decisions.
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Crystal Xu, Kwai Chung
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