Coronavirus cuts into Eastar Jet executive pay by 30%

(Yonhap)

Korean low-cost carrier Eastar Jet has decided to tighten its belt by reducing executive wages and workweek, amid the continued spread of the novel coronavirus that apparently originated in China, according to the company on Wednesday. 

The firm said the executives agreed to reduce 30 percent of their salaries from March for four months. It also will accept applications from all employees -- barring flight and cabin crew -- for three-day and four-day workweeks. Employees can choose one of the alternative working-hours systems -- a three-day workweek, four-day workweek or four-hour workday -- each month from March to June, according to the firm.

Also, Eastar Jet decided not to allow overtime work except in emergencies and to keep unpaid leave -- at least 15 days or longer -- that was already in place.

The company official said this is a measure to respond to the worsening business environment due to the virus outbreak. “We plan to take temporary measures until June and only for those who apply for it.”

By Shin Ji-hye (shinjh@heraldcorp.com)