A gale of layoff and salary cuts is hitting the Nigerian aviation industry, as operators embark on staff right-sizing and salary cuts, citing the impact of the coronavirus pandemic.
Within two days, two airlines, Nigeria’s leading airline Air Peace, and Bristow Helicopters have announced plans to sack as many as 170 pilots in addition to salary cuts.
On Tuesday, Bristow announced it would sack of over 100 pilots and engineers (both nationals and expatriates) in the next couple of weeks, citing the impact on its business by COVID-19.
“The spread of the Covid-19 virus has severely impacted all sectors in the aviation industry including our market, which primarily serves the Nigerian oil and gas sector. In addition, the ongoing downturn in the global oil and gas market continues to influence and determine the demand for our services.
“The combined effects of these ‘arisings’ have resulted in very significant reductions to our business particularly a reduction in the number of contracted aircraft in Nigeria. As a result, the company must now restructure all aspects of its business model (both Rotary & Fixed Wing), including an extensive review of its operations and we continue to drive efficiencies, but with zero compromises to safety and our core values,” Bristow said.
“One of these measures includes the right-sizing of the business to ensure that the company has the optimal level of personnel to continue the safe delivery of its services to its clients, whilst allowing the appropriate capacity for future growth. Accordingly, and with much regret, the company has taken the very difficult decision to release over 100 pilots and engineers (both National and Expatriates) over the next couple of weeks.”
Bristow said that in compliance with the relevant labor and local content laws and also best practices, the company had engaged the leadership of the National Association of Aircraft Pilots and Engineers (NAAPE) to negotiate a fair and equitable redundancy compensation for the affected individuals.
It added that in compliance with the terms of employment, the affected individuals would be paid 3 months’ salary (excluding applicable deductions) following their exit from the company. It said the redundancy packages would be paid to them as soon as an agreement has been reached with NAAPE.
“This decision has not been made lightly, but having considered the state of the business and the very serious constraints caused by the spread of the Covid-19 disease and the downturn in the oil and gas market, the company must now take this painful, but decisive step to ensure the continuity of its business and delivery of essential services to its clients,” the company said.
On its part, Air Peace announced the sacked of a number of pilots, which industry sources put at about 70, and salary cuts ranging from zero percent to 40 percent.
Stanley Olisa, the spokesperson for the company, said in a statement that the management of the airline based the disengagement of the pilots on the impact of COVID-19 pandemic on its operations.
“The Management of Air Peace wishes to state that it has taken a very painful but rightful decision, in the circumstances the airline has found itself as a result of the devastating effects of the COVID-19 pandemic on its operations and financial health to terminate the employment of some of its pilots.
“This decision was taken for the greater good of the company and its almost 3000 workforce, the affected pilots inclusive,” he said.
“The airline cannot afford to toe the path of being unable to continue to fulfill its financial obligations to its staff, external vendors, aviation agencies, maintenance organizations, insurance companies, banks and other creditors hence the decision to restructure its entire operations with a view to surviving the times.”
He explained that staff salaries would be reviewed based on their salary grades.
“We decided to review the salaries being paid to all staff. The new salaries reflect a 0 percent to 40 percent cut of the former salary depending on the salary grades of every staff.
“Even after the cuts, it was obvious that for us to be able to sustain our operations and survive the times, some jobs must inevitably have to go.”
Olisa explained that Air Peace has never, for one day, ever owed salaries to its workers in its almost six years of existence, pilots inclusive. Rather, the management of Air Peace has always been known to be increasing salaries of its employees periodically without being prompted by staff,” he said.
“In fact, in one fell swoop, Air Peace increased the salaries of pilots by over 100 percent in one day! Our salaries have always been paid even before the end of the month in the last five years!” Olisa said.
