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Company News

CORRECTED-UPDATE 1-Japan's ANA to seek workers to leave voluntarily, cuts winter bonus to zero

(Corrects to say ANA to seek voluntary leave from 15,000 employees, not non-executives, in 3rd paragraph)

TOKYO, Oct 7 (Reuters) - Japan’s biggest airline ANA Holdings said it has proposed to the labour unions at its main carrier ANA to seek workers to leave voluntarily after a collapse in air travel due to the coronavirus pandemic.

The airline will also cut winter bonuses to zero and reduce monthly salaries, a spokesman said, adding that it will start “sincere discussions” with the union on workforce reductions.

ANA said redundancies would be offered to some of its 15,000 employees but did not give a specific figure.

The airline will also allow the employees to take as long as two years off from work without salaries, the spokesman said.

ANA will streamline domestic flights and reduce office space as part of a business overhaul, according to the Nikkei daily, which first reported the news.

Like other airlines worldwide, ANA has had to slash flights as countries imposed travel restrictions to halt the spread of the coronavirus. So far, the carrier has relied on loans from its banks and the government to help it cope with the slump.

In the three months to June 30, ANA posted a loss of 159 billion yen ($1.50 billion).

$1 = 106.0900 yen Reporting by Maki Shiraki, writing by Junko Fujita, editing by Louise Heavens and Kim Coghill

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