THAI will only shed 5% of staff instead of 30%, promises rehab panel

[webfact]

THAI will only shed 5% of staff instead of 30%, promises rehab panel

By THE NATION

 

 

The panel in charge of rehabilitating debt-ridden Thai Airways International Plc (THAI) on Tuesday (June 30) confirmed that the carrier will only shed 5 per cent of the 20,000 employees as part of the airline’s reorganisation effort.

 

Nares Peungyam, former president of THAI’s labour union, said he, representatives of the airline staff as well as representatives of the labour union met the rehab panel to discuss some issues on Tuesday.

 

He said that at the meeting, panel member Pirapan Salirathavibhaga said now the panel is aiming to cut only 5 per cent of the airline’s workforce, down from the initial target of 30 per cent.

 

According to Pirapan, some redundant staff members will be shifted to departments that need more workers, Nares said.

 

Meanwhile, THAI’s board held an extraordinary meeting on Wednesday (July 1) to appoint board member Chansin Treenuchagorn as acting president as of July 2. The airline’s board also accepted the resignation of Chakkrit Parapuntakul from his post as acting president. Chakkrit will continue holding the position of THAI’s second vice chairman.

 

The carrier filed for rehabilitation with the Central Bankruptcy Court on May 26 and the court accepted the petition on May 27. The court will hear the case on August 17.

 

Source: https://www.nationthailand.com/business/30390626

 

-- © Copyright The Nation Thailand 2020-07-02

 

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[marin]

Let the games begin. Their fleet is going to be reduced at least 25%, their check in desks at Swampy have been reduced by 40%, they are losing money hand over fist. Yet only a 5 % reduction in staff. Impossible, it would make it worse than now.  Get these Thai Airways lackeys out of the rehabilitation plan or its going to sink like a stone. Which perhaps it should.

[canopus1969]

And so the 'joke of a company' continues in it's own merry way losing yet more money

[JonnyF]

The rollback on promises has started. Expect the government to find some way of bailing them out while trying to save face.

 

My bet is on a huge interest free loan from the government (that THAI defaults on long after the story has faded from the headlines).

 

THAI will continue to be a huge financial burden on the taxpayer and will continue to offer freebies to the people with connections. 

[trainman34014]

This is sooooo predictable and before long it will be business as usual with the Thai Public picking up the endless tab.  They don't have the balls to let it go where it belongs...........down the plughole !

[ExpatOilWorker]

As long as the keep the staff that will process the ticket refund, I am happy. 

[ezzra]

What a joke, no wonder they have filed for bankruptcy taking my 30k refund with them, you'd thing the president will be any better than his predecessors, alas, they cut from the same cloth and answer to the same influential figures...

[steven100]

29 minutes ago, webfact said:

some redundant staff members will be shifted to departments that need more workers,

how many times have I heard this BS before .... THAI is kaput imo. 

They owe creditors billions of baht and they are talking about keeping staff .....  lol  

[darksidedog]

In a country where they need a calculator to add up two ten Baht items, it's easy to see how they can't work out how much those extra staff are going to cost them. THAI has been a bloated disaster for years and if this is what they are suggesting at such an early stage in reducing costs, then it is almost certainly going to continue hemorrhaging cash ad infinitum. Would be better to completely liquidate it, but loss of face means they probably can't do it.

[colinneil]

Can somebody explain, how if they are reducing the fleet by about 25%, why only shedding 5% of staff?

They were overstaffed before, so only a 5% reduction will mean hundreds if not thousands of workers with nothing to do.

[holy cow cm]

6 minutes ago, darksidedog said:

In a country where they need a calculator to add up two ten Baht items,

Funny you say that, as that is pretty close the same thing my wife says when at food markets and little stores. And she is Thai

[phkauf]

I can't wait to see the reaction of the secured creditors (lessors of the aircraft) when this plan is filed. It shows how unserious THAI is about reorganizing and how their plan is doomed for failure. These creditors should be able to file an alternative plan in the US that would allow them to take back the aircraft. A US Court could potentially see THAI's plan as unlikely to succeed and step in to protect the creditors since their security will be losing value. Additionally, THAI's plan would tend to favor the unsecured creditors (employees) over the secured creditors, which is a Big No-No in bankruptcy. THAI's options would be to just hand back the aircraft and avoid the US Courts.

THAI's arrogance is unreal here with this nonsensical plan. 

[holy cow cm]

This is nonsense as they have already terminated more than 5%. My daughter has already returned her badge and uniform and they did not even pay here full severance. If it was for me to guess, they have already laid of 40%.

[varun]

To be fair, management incompetence in the airline industry is not new.

 

The HK govt recently announced a USD 4 billion bailout package for Cathay,

who have also been circling the drain for some time.

 

If 5% of THAI employees will be let go, 

maybe at least 10-15% will be put on unpaid leave for the near future.

[Grumpy John]

There buckling under pressure....from whom???   Would be interesting to see behind the black curtain. ????

[JusticeGB]

They can't fire any ghost workers on the payroll or wives/mia nois of the bosses so maybe that's why they can only find 5% surplus workers!

[klauskunkel]

6 hours ago, colinneil said:

Can somebody explain, how if they are reducing the fleet by about 25%, why only shedding 5% of staff?

Too many hi-so sons and daughters work there, can't alienate the parents.

[watboy]

Most of the ground and support staff are outsourced and have/will lose their jobs. What they are really meaning is reducing the members of the labor union, which includes all the cabin crews. I wonder if they will start asking cabin crews to start working gates and counters...

Edited July 2, 2020 by watboy

[Dave0206]

Makes perfect sense to me most well run airlines are cutting staff by 40% plus so obviously Thai only need to reduce by 5% as long as the 5% are the current ex military directors save a fortune 

[Darkside Gray]

And so the problems begin again.

[scorecard]

8 hours ago, canopus1969 said:

and so the 'joke of a company' continues in it's own merry way losing yet more money

Yep and it seems to me they are determined to ignore, put a mask over, and skirt around their massive multi faceted problems and issues.

 

Where's the folks who got Thai removed as a gov't sponsored enterprise and seemed to make gains in some initial comments about moving the company into administration process? What happened?

 

Now staff reduction changed from 40% to 5%. How can this be? Further I guess the 35% now not being let go are being paid salaries. What for, what value are they adding by remaining at the airline?

 

Where's the PM, why isn't a senior minister watching this carefully and intervening by yelling very loudly at the clingers who refuse to see that it's a massively failed enterprise and to some extent caused by the overall poor attitude of their staff?  

 

 

[hotchilli]

8 hours ago, marin said:

Let the games begin. Their fleet is going to be reduced at least 25%, their check in desks at Swampy have been reduced by 40%, they are losing money hand over fist. Yet only a 5 % reduction in staff. Impossible, it would make it worse than now.  Get these Thai Airways lackeys out of the rehabilitation plan or its going to sink like a stone. Which perhaps it should.

They got the go-ahead for bankruptcy to stave off paying back debts, now back tracking on what was promised to re-organise the company to make it run efficiently. They're going to do what they always did, run the same way as before.

 

Edited July 2, 2020 by hotchilli

[milesinnz]

Heck.. bring it on... the more the mismanagement and waste of government money the more likely the eventual fall in the Baht....

[amdy2206]

As long as that 5% is at the top end of hanger ons, executives who just take perks, army officials abusing their position, board members - way too many, and anyone else who is there for a free ride. If those go, maybe, just maybe, Thai could be good again!!

[473geo]

No Thai government would want to go down in history as the execution squad for Thai Air

[Stargeezr]

If everyone boycotts Thai Air, including the Thai people  this company will be gone in a year.

  Remember that the next times you fly. I will not fly with them again.

Geezer

[Redline]

They have no clue how to run an airline ????