TAP moves ahead with pay cut cuts of up to 20% for all workers

According to a communication from the Executive Committee, to which Lusa had access, TAP will continue to reduce wage cuts to 20% for all workers, and will also update the value below which cuts do not apply.

In a message sent to employees, the air carrier’s management reminds that “TAP is in compliance with the restructuring plan, namely in terms of increasing revenue as well as reducing costs”, emphasizing that the cost reduction “was implemented not only with a focus on reducing wages, but also through renegotiating supplier contracts and establishing better partnerships or efficiency gains”, among other measures.

However, he acknowledged that “the adoption of emergency agreements by trade unions representing all workers was critical to the success of TAP’s recovery”, emphasizing that “the road to recovery is not over yet, it is still ongoing” and recalling that “temporary emergency agreements are in place until the end of 2024.”

However, he stressed, “thanks to the efforts of all employees and good management, TAP’s financial performance exceeds the forecasts of the restructuring plan.”

“These figures allow for the expectation of a reduction” in wages (up to 20% above the minimum guarantee), “thus recognizing the efforts of all employees,” TAP said in a statement.

The 25% cuts were expected to remain in effect for most workers through the end of this year.

On the other hand, the Executive Committee stated, “thanks to the increase in the National Minimum Wage (SMN), the amount equivalent to two SMNs has also been updated to €1,520, below which no reductions apply (minimum guarantee).”

The carrier’s management assured that “due to the combination of these two factors – reducing the reduction to 20% and updating the minimum guarantee without reduction to 1520 euros – the number of employees increases without reduction and the actual reduction in the part of wages above the minimum.” the guarantee is also reduced”, and, he emphasized, “in practice, the real reduction in wages in TAP SA [negócio da aviação]becomes an average of 7.3%.

Finally, while recognizing the efforts of employees and taking into account inflation and rising interest rates, the Executive Committee stated that “other measures affecting remuneration adapted to the specifics of professional categories are being decided and implemented”.

“All these measures are applied retroactively from January 1, 2023 and will be valid until December 31, 2023,” the airline said.

“It is not ignored that the remaining cuts continue to force workers to make sacrifices and put in more effort, but the announced measures signal that TAP is on the right path to recovery,” the carrier’s management emphasized.