SAS may demand staff pay cut

Reports suggest that SAS may ask employees to take pay cuts of up to 25 percent

October 24th, 2012 5:42 pm| by admin
facebooktwittergoogle_pluspinterestmail

SAS is embarking on a new round of radical savings in order to stay aloft in the highly competitive airline industry.

The news arrives less than a year after pan-Scandinavian airline implemented a round of savings through its ‘4Excellence’ strategy though the new round of savings suggests the plan has not brought the desired results.

Reports suggest that SAS is likely to demand staff accept pay cuts of between 15 and 25 percent in order to find the necessary savings.

“I think SAS’s has incredibly sharp leadership at the moment,” Richard Björnelid, who has written extensively about SAS, told Berlingske newspaper. “There is talk of a 25 percent pay cut. That is the information I have received from a centrally placed source. I suspect SAS’s leadership will simply say, “This is what matters, take it or leave it”

Björnelid added that it was likely that SAS employees would have to reapply for their jobs, though it is risky if too many choose not to.

Jyllands-Posten reports that SAS also hopes to save by cutting a number of middle-management positions after their responsibilities were condensed into the hands of fewer people.

“Previous rounds of savings led to many job functions being merged, while many middle managers were given higher positions,” an anonymous source told Jyllands-Posten. “They are now cleaning this up.”

New accountancy rules also mean that SAS is may lose almost all of its 12 billion Swedish kroner of capital through pension payments, leaving the company on shaky financial ground.

“SAS is sitting on a pension time bomb that could almost completely obliterate its equity,” Jacob Pedersen, a senior analyst at Sydbank, told Jyllands-Posten. “

Phone envy: it isn't the size, it's what he does with it (photo: istock)
Mind over managing: Don’t feed the monster
  CNN recently ran an article highlighting research from the Univer...
(phot: Becks Kaysen)
Out and About: La fastest game on two feet
Despite being ‘the fastest game on two feet’, loads of action and fun (...
(photo: Clive Thain)
Hook up with Copenhagen at the 2015 Expat Fair!
All of the ‘freshers’ are excitedly gathering in the main hall, looking...
Fighting to be heard in Christiansborg: This country needs skilled foreigners! (photo:pixabay)
Business needs talent: A new start
On June 25, I was pleased to announce that the Confederation of Danis...
The minister's "pilgrimage" to the camps hardened her resolve to pick and choose (photo:pixabay)
Straight up: Refugees and the politics of fear
  The reality of a Lars Rasmussen-led government has hit home. The ...
(All photos: Hasse Ferrold)
About Town: Homeland’s head honcho, cuban cigars and the spaceman
  American TV-producer and scriptwriter Howard Gordon (left), the c...