Tui will cut its staff wages between 30 and 50 per cent – but avoid redundancies.
The travel giant said colleagues required to work will receive a 30 per cent reduction in basic pay and contracted hours; colleagues required to work less than 50 per cent, or not at all, will receive a 50 per cent reduction in basic pay and contracted hours.
The new measures come in on April 1 and will be reviewed monthly.
Tui said there will be no redundancies, voluntary or otherwise, “other than already planned activity in retail and seasonal Cabin Crew who were recruited ready for our summer season who are unfortunately no longer required.”
It added: “The airline is grateful to have the support of BALPA and UNITE and the workforces they represent in agreeing to support a range of extensive measures.
“We understand that these temporary changes will be difficult, but our commitment to our colleagues is that we will maintain the minimum wage threshold of £17,098 UK / €19,804 ROI (pro-rated).”
It also announced a company-wide recruitment freeze and restriction on all non-essential staff travel and training, adding that all safety and compliance training remains in place.
Andrew Flintham, managing director, TUI UK and Ireland, said: “The travel industry is facing unprecedented pressure. We will continue to put the customer at the heart of what we do, and when they can holiday with us again we want to be in the best position to deliver the wide range of destinations and experiences we do today.
“It is therefore imperative that we make these difficult cost decisions and also look after our colleagues during such unprecedented uncertainty. Our airline and overseas teams continue to work around the clock to get people home from around the globe, even supporting customers who were not due to fly with us. Our customer teams have been helping in retail stores, on social media, through our contact centres, and employees from around the business have been welcoming home arrivals at airports. We are a fantastic business and we look forward to taking people on holiday again soon.”