February 14, 2021
Lufthansa Technik Philippines, one of the country’s largest aircraft maintenance, repair and overhaul companies will be implementing a Rightsizing Program that reduces its labor force by 20%, affecting 300 jobs which pulls it to 2,700 or 20 percent lower than the beginning months of pandemic level starting April 2021, as the COVID-19 pandemic keeps on hitting the aviation industry.
In a letter to employees dated Feb. 11, 2021, LTP President and CEO Elmar Lutter stated the decision came “after careful study and consideration of the business and industry situation as a result of the pandemic and its effects on the aviation industry.”
“As a maintenance, repair, and overhaul provider for aircraft, the significant fleet reductions announced by various (customer) airlines with some already in bankruptcy proceedings have a direct negative effect on LTP’s business,” Lutter added.
Lufthansa Technik had approximately 3,400 employees before quarantine, however, about 400 laborers decided to leave due to not being regularized, Gan explained. All of the regulations and agreements will be consistent with legal terms on the separation of employees set by the Department of Labor and Employment (DOLE).
The workforce reduction will be implemented into two parts voluntary separation and potential retrenchment.
According to the letter for remaining employees, Lutter also highlighted the procedures of LTP to carefully oblige workers employed and to protect them from the impact of the COVID19 crisis. This includes flexible work arrangements, additional and advanced leaves, face masks, and vitamins. Lutter added this step could “secure the fiscal health of the company to tide it through this critical period, and is considered temporary until our industry fully recovers.”
It adds:
“LTP’s commitment to the welfare of its employees continues even after separation. Qualified employees affected by the rightsizing program will have the option to enroll in the Salute Program that is designed to keep skills and authorizations current. As they will be prioritized for rehire, their active participation in the program will ensure a smoother return,” the company said.