TAP won’t pay bonuses to workers. It’s the virus’ fault

  • ECO News
  • 10 March 2020

With coronavirus forcing the cancellation of thousands of flights, the administration decided not to proceed with the payment of merit bonuses to employees.

TAP is not going to pay bonuses to workers, as it has in recent years. The basis of the airline’s decision is the powerful impact that the coronavirus is having on the company performance, which has already been forced to cancel thousands of flights.

The information was advanced by TSF and was confirmed to ECO by a source close to the process which explains that the company is currently focused on cost containment given the financial impact the epidemic is having.

It should be recalled that after canceling 1,000 flights last week due to the coronavirus outbreak, the airline announced earlier this week the cancellation of another 2,500 trips. These measures are justified by the “breakdown in reservations for the coming months,” the company said.

TAP made losses of 105.6 million euros in 2019. Despite the negative figures, David Neeleman, TAP’s main private shareholder, had assured that performance bonuses would continue to be paid, as he sees them as “the most efficient way” to manage staff.

In view of the negative figures, the Minister of Infrastructure Pedro Nuno Santos stated that the Government would not allow bonuses to be paid, having already communicated his position to the company.

Last year, the Minister of Infrastructure heavily criticised the bonuses for 2018. In a year in which TAP had losses of over 100 million, it paid premiums of 1.171 million euros to 180 people.