The aviation business might face extra layoffs after Cathay’s huge reduce in workers, involving greater than 30 to 40 % of practitioners within the business being dismissed, stated Senior Lecturer of CUHK Enterprise College Simon Lee Siu-po.
Lee identified that given massive enterprises like Cathay Pacific nonetheless determined to layoff its workers after being injected billions by the federal government, different small and medium enterprises would probably observe go well with.
“Authorities ought to introduce extra support below the Employment Assist Scheme, subsidize workers salaries between December and February for corporates, to stop the unemployment charge worsening from extra layoffs,” Lee recommended.
The top of the Workers and Staff Union of Hong Kong Civil Airways, Li Wing-foo additionally frightened that the closing down of Cathay Dragon would result in one other wave of huge layoffs.
“There’s one catering enterprise the place 60 % of their orders have been from Cathay Dragon, now with the airline closed, I’m frightened they can even be compelled to chop bills,” Li burdened.
He additionally talked about that there are three different firms accountable for upkeep and cabin cleansing of the airline’s plane, worrying they can even be put below stress.
Sources say with the large Cathay layoffs, Hong Kong’s unemployment charge will additional improve by one other 0.1 %, reaching 7 % within the fourth quarter of 2020.
Worldwide Consulting Group managing director Armstrong Lee Hon-cheung stated the Cathay workers who have been dismissed will discover it exhausting to get a brand new job with their skillsets.
“These flight attendants and floor crew workers are all frontline workers serving prospects, industries requiring such skillsets just like the hospitality business and retail business are additionally hanging on for expensive life, not needing any further workers,” he stated.
He additionally frightened that employers will see this as a chance to decrease wages for recruiting new workers, with a lot of unemployed available in the market.