Lufthansa Technik PH to reduce workers by 20%

Published February 12, 2021, 10:00 AM

by Bernie Cahiles-Magkilat

Lufthansa Technik Philippines (LTP) will be implementing a Rightsizing Program that will reduce the size of its workforce by 300 which brings it to 2,700 or 20 percent lower than pre-pandemic level.

In a statement, LTP President and CEO Elmar Lutter said the decision came after careful study and consideration of the business situation as a result of the pandemic and its effects on the aviation industry.

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The Rightsizing Program, similar to other programs implemented in the past year, aims to secure the fiscal health of the company to tide it through this critical period, and is considered temporary until our industry fully recovers.

Lutter explained that as a Maintenance, Repair, and Overhaul (MRO) 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.

He said the Rightsizing Program will be implemented in 2 phases; first by voluntary separation; and then by retrenchment (if necessary to reach the rightsizing number). The package will be consistent with regulations on separation of employees set by the Department of Labor
and Employment (DOLE).

Since the beginning of the quarantine period, LTP has taken extraordinary measures to provide employment and aid to its employees. These measures include flexible work arrangements that provide equal opportunity for employees to share in available work, provision of additional and advanced leaves to help secure employees’ finances, as well as provision of tools to secure employees’ health such as face masks and vitamins. Apart from the Annual Physical Examinations accorded to all employees, we have also extended our health care program to include the care of the mental health of our employees.

Employees are provided with a facility to privately book sessions with expert counselors. Throughout this difficult period, employees were regularly updated on the business situation and provided context for every management decision. They were also provided a venue to easily share sentiments, concerns, and suggestions through a dedicated

“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.

The program also includes assistance in skills training and consultation for those who wish to pursue new passions in the interim or for good.

“While we look forward to the soonest recovery of the aviation industry and wish for the same for all other industries affected by the pandemic, we also have to face the reality of its current state and make the necessary adjustments to ensure operational efficiency,” the company said.