Gulf Air begins voluntary redundancy programme to improve efficiency

CEO, Samer Majali said, “A key part of our strategy is to review all cost elements of the business that have an impact on its sustainability and profitability.   This included personnel-related costs. Offering a VRS was one of the suggestions put forward by employees and employee representatives to address this issue.”

“After careful consideration and a series of consultations with the Gulf Air Trade Union (GATU) and the Ministry of Labour, we have come up with a VRS that we feel offers a reasonable financial package to Bahrainis and former owner-state nationals wishing to leave Gulf Air and wanting to pursue other business or personal ventures.”

“While not all of the GATU's demands could be fully met, many were taken into consideration and the VRS scheme was modified to accommodate their suggestions.  I was pleased with the final outcome as both Gulf Air management and GATU have became more aligned following negotiations and reached an understanding for a voluntary scheme.”

“Whilst we are conscious of the financial impact due to the high number of employees we have on our payroll, our main priority will always be, retaining the best and most productive talent, safeguarding the jobs of Gulf Air employees who continue to workhard for Gulf Air’s long term success and future.”

Mr. Majali emphasized, “Notwithstanding the VR scheme, we are actively moving on employing more Bahrainis.  I am proud to say that today 82% of non-flight crew positions in Bahrain are held by Bahrainis, while our overall Bahrainisation level has reached 54%.”

  “However, we are not stopping at that; we continue to create more opportunities to attract qualified Bahrainis. Recently we launched a campaign to recruit Bahrainis for our customer-facing positions and we recruited and trained 125 Bahrainis for our Gulf Air’s World Wide Call Centre. We also have ongoing training programmes in cooperation with Tamkeen for Bahraini pilots, engineers and cabin crew, just to name a few,” he concluded.

Participation in the VRS is entirely voluntary and no one will be forced to take it. It is up to the individuals to decide whether they want to apply and make use of this one-time opportunity. However, the decision to approve or reject any application will rest with a management committee.

Under the scheme, employees, who are Bahrainis or former-owner state nationals, who have worked for the company for a minimum of six months, are entitled to apply. Employees, whose applications have been approved, will receive a compensation of one month’s salary for each completed year of service, three month’s salary as an ex-gratia payment and one month’s salary in lieu of notice period.

In addition they will also receive other benefits such as medical insurance coverage and staff travel benefits. Medical Insurance coverage will continue to be provided until 31^st March 2011 after which primary care will be provided for the employee and their eligible family members at the Gulf Air Clinic from 1^st April to Dec 2011. The employees’ staff travel benefits will be honoured until end-2010 while they will also continue to enjoy the company’s future staff travel benefits as per the Staff Travel Guide applicable to former employees. Staff, who are members of the Gulf Air Club can continue their membership until December 2011.

To assist employees in their VRS applications Gulf Air will offer a number of services including welfare and counseling support,   investment guidance and for those wishing to develop additional skills Tamkeen will be available to provide advice.

The launch of the VRS scheme follows an already successful drive by the airline to restructure its workforce. Through strict contract-renewal criteria, a freeze in recruitment except critical positions, freezing positions that fall vacant through natural attritions such as resignations and retirements and launching VRS in some of the companies’ outstations the workforce has been reduced.