By Lisbet Esmael, CNN Philippines, 12 Feb 2021
Metro Manila (CNN Philippines, February 12) — Lufthansa Technik Philippines—one of the country’s biggest aircraft maintenance, repair and overhaul companies—will slash its workforce by 20%, affecting 300 jobs starting April, as the COVID-19 pandemic continues to hit the aviation industry.
The company is a venture between Germany’s Lufthansa Technik and Lucio Tan’s MacroAsia Corp.
Elmer Lutter, LTP president and chief executive officer, said the dire situation in the sector, which drove LTP’s other customer airlines to file for bankruptcy, forced the company to conduct a rightsizing program to ensure it would survive the global health crisis.
“While we look forward to the soonest recovery of the aviation industry and wish for the same for all other industries affected by the pandemic, we also have to face the reality of its current state and make the necessary adjustments to ensure operational efficiency,” he said in a statement on Friday.
The plan would be implemented in two phases—by voluntary separation and possible retrenchment to meet the rightsizing number.
In a mobile message on Friday, Eunice Gan, manager of corporate communications, said voluntary separation will take effect on April 1.
LTP gave assurances the package will be consistent with regulations on separation of employees set by the Department of Labor and Employment.
It will continue to work with 2,700 employees, it added.
The company said it has been providing aid to its employees since the beginning of the COVID-19 pandemic, including flexible work arrangements, tools to secure their health such as face masks and vitamins.
The firm’s health care program has also started covering its employees’ mental health.
Those qualified individuals, who will be affected by the rightsizing program, may apply to enroll in the Salute Program designed to keep skills and authorizations current. LTP said they will be prioritized for rehire.
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